Max’s Group Reports 1st Half 2016 Financial Results
Max’s Group Inc. (MGI, PSE: MAXS) posted a net income of P295.33 million for first half 2016, up 4% versus P284.67 million for first half 2015. Topline registered double-digit growth at 10% to P5.43 billion from P4.93 billion. Restaurant sales increased 9% to P4.53 billion from P4.16 billion driven by new store openings and stable same store sales performance. Commissary sales rose 13% to P630.87 million from P559.63 million while revenues from franchise, royalty and continuing license fees increased 28% to P270.52 million compared to P211.66 million in the same period last year. Systemwide sales grew 13% to P7.43 billion from P6.55 billion for first half 2015.
“The results are consistent with our growth story and the overall state of the economy. For the second half, we will continue to execute a balanced store rollout in key strategic areas,” said Robert F. Trota, President and CEO of Max’s Group, Inc.
To date, Max’s Group has opened 35 stores including an international outlet for Max’s Restaurant in Kuwait. As of end-June 2016, MGI operates a network of 600 stores including 38 abroad.
For the offshore business, MGI has so far inked 11 development agreements for 2016. These are comprised of 70 Yellow Cab Pizza stores across China, Saudi Arabia, United Arab Emirates, Singapore, Egypt and Jordan, 13 Pancake House outlets between Qatar and United Arab Emirates, 10 Sizzlin’ Steak branches in Vietnam and 3 Max’s Restaurant in San Diego. Combining existing operations, MGI has a secured overseas pipeline of over 130 stores slated to open in the coming years.
“We have surpassed expectations due to the overwhelming response of foreign markets to our international expansion program. This clearly shows that our brands are well-primed for the global stage,” stated Mr. Peter H. King, Chief Executive Officer of Max’s Group International.
On support activities, MGI continues to derive operational efficiencies through its shared services approach. Supply chain initiatives have benefited from negotiated pricing and prompt payment discounts translating to lower costs for food and non-food items. Migration to an upgraded enterprise resource-planning platform has likewise paved the way for process standardization efforts.
“For the remainder of 2016, we share in the optimism on the general macro climate of the country. Domestic consumption is still seen to stir economic activity in the long-term. As such, to capitalize on this growth outlook, we are looking to close the year with around 60-70 new stores,” concluded Mr. Trota.