Max’s Group Posts P140M Net Income For 1Q
MANILA – The net income of Max’s Group, Inc. (MGI) rose to P140.20 million in the first three months of 2015, marking a 372 percent increase compared to the same period last year.
“We are now seeing the results of our transformative efforts in 2014. As we continue to rationalize operations across our stable of brands, we are determined to gain more ground and sustain this momentum moving forward,” stated Robert F. Trota, President and CEO of MGI.
The largest operator in the chained full-service restaurant segment disclosed its 1Q results on Thursday, which pertains to the results of operations of the Pancake House Group and Max’s Entities from January to March this year.
During this period, Max’s Group consolidated revenues increased 159 percent to P2.40 billion compared to reported figures for the same period last year. On a pro-forma basis, topline growth came in 6 percent higher despite planned closure of seven outlets during the period in line with the company’s thrust of rationalizing its store network.
Store sales, which comprised bulk of revenues, grew 6 percent to P2.05 billion year-on-year. Franchise income likewise went up 40 percent to P91.93 million from P65.54 million in the same period last year. As a result, the Company swung from a loss of P23.80 million in the first quarter of 2014 to a net income of P140.20 million for the first quarter of 2015.
Aggressive expansion continues
“We remain confident in our plans to broaden our international footprint by positioning some of our brands as mainstream products in new markets,” Trota remarked.
From January to April, the Company opened 10 outlets including three overseas. The company opened a fourth Max’s Restaurant in the Middle East located in Al Ain, United Arab Emirates (UAE) and another branch at Scarborough, Ontario in Canada. Pancake House, on the other hand, now has eight stores in Malaysia, including the addition of a new outlet in Kuala Lumpur.
As of April, the Max’s Group has a total of 543 branches. For 2015, it plans to open 80-90 new branches with half already primed in secured locations. It also intends to accelerate the rollout pace of these stores in the next quarter.
MGI to benefit from improved operational efficiency in 2015
“The company continues to evaluate underperforming stores and streamline its base of operations primarily in supply chain, marketing, and support services,” cited Trota.