Max’s Group Reports Nine Months 2016 Financial Results
Max’s Group Inc. (‘MGI’, the ‘Company’) systemwide sales grew 12% to P11.09 billion for the nine months ended 2016 from P9.87 for the nine months ended 2015. Topline registered double-digit growth of 11% to P8.09 billion from P7.30 billion as of 30 September 2015. Restaurant sales increased 8% to P6.72 billion from P6.20 billion driven by 22 new stores opened from July to September and steady same store sales performance. There are likewise plans to shift into quicker formats for certain brands to benefit from higher volume turnover and lower fixed overhead. Commissary sales rose 19% to P971.03 million from P813.59 million while revenues from franchise, royalty and continuing license fees increased 39% to P399.87 million versus P287.05 million compared to similar periods in 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P889.47 million resulting to a net income of P380.56 million, up 3% versus P368.86 million year-on- year.
“The third quarter is normally our lean period owing to the wet climate and other cyclical factors. Nonetheless, the historical slowdown should reverse ushering into the Christmas season,” said Robert F. Trota, President and Chief Executive Officer of Max’s Group, Inc.
To date, Max’s Group has rolled out 55 new stores including 11 international branches, bringing its overall count to 611 stores with 44 located abroad.
On the overseas front, MGI continues to convert its existing development pipeline of 91 outlets into physical stores. During the third quarter alone, MGI unveiled flagship stores for Yellow Cab Pizza in Beijing and Changsha Province in China as well as Sizzlin’ Steak in Vietnam.
“From securing territories, focus is now centered on store building activities to boost our recurring income base. In the same way, we remain in pursuit of leads into other markets,” stated Mr. Peter H. King, Chief Executive Officer of Max’s Group International.
The Company is committed to further reinforce its support infrastructure anchored on a shared services model. It recently invested in a modern human resources information system designed to electronically consolidate people-related requirements. This initiative is expected to significantly reduce manual processing intervention translating to maximized productivity across the business. On capital expenditure, MGI has mapped key growth strategies to ensure effective deployment of assets into value-accretive ventures.
“We encountered higher commodity prices aligned with inflationary movement. While mitigating measures are in place, we constantly improve our capabilities and menu mix to manage rising input materials,” added Mr. Trota.
“For the remaining months of 2016, we expect the prevailing economic environment to sustain its positive trend. We will open another 20-30 stores to close the year, putting ourselves in a strong position to meet Yuletide demand,“ concluded Mr. Trota.