Max's to Build on Year of Convergence to Sustain Growth
Max’s Group Inc. (MGI), the Philippines’ largest full-service casual dining restaurant group, discloses its 2018 numbers, ending on a high note last year and moving forward into 2019 with positive momentum.
Systemwide sales grew 8% to Php18.80 billion from Php17.34 billion in 2017, with a steady same-store sales showing of 4%. Topline growth also rose 8% to Php13.68 billion from Php12.66 billion. Restaurant sales increased 8% to Php11.30 billion from Php10.46 billion, driven by the opening of 24 new company-owned branches. Meanwhile, commissary sales accelerated by 10% to Php1.57 billion from Php 1.42 billion, driven by a rapidly-growing franchising base. Franchising income also grew 6% to Php820.4 million for 2018 from Php776.2 million in 2017.
EBITDA improved significantly to Php1.58 billion, up 28% versus last year’s figure of Php1.24 billion, as a result of designing a more profitable mix of products and applying operational efficiencies in both stores and commissaries.
Income before income tax rose 28% to Php916 million from Php713 million in 2018. Net income for 2018 stood at Php631 million, compared to Php627 million in 2017, which included Php146 million in deferred tax benefit recognized on net loss carryovers of some entities.
Cash from operations rose to Php1.2 billion, up 68% from prior year, signaling a strong recurring model from core activities.
“Over the past year, we have made a concerted effort to focus on convergence. This has changed how we develop our products, approach our operations and supply chain management, and set up the structure of our regional and international teams,” shared Max’s Group, Inc. President and CEO Robert Trota. “This model will enable us to hit the milestones we have committed in our five-year roadmap and allow us to enjoy sustainable growth.”
Convergence and expansion in local and international markets also led to the Company rolling out 66 new stores, including 11 international branches, bringing total network count to 705 outlets by the end of 2018. Cross-brand collaborations in marketing campaigns and retail development further demonstrated synergies in its deep brand portfolio that houses such iconic marks as Max’s Restaurant, Yellow Cab Pizza Co., Pancake House, Krispy Kreme, Jamba Juice, Dencio’s, Teriyaki Boy, and Sizzlin’ Steak.
To facilitate greater convergence across its portfolio, MGI also streamlined store networks, implemented regional team structures for international franchisees, and invested in enhanced processes to improve operations for its international businesses. The Company is looking into more efficient systems, with investments in accelerated capabilities in data analytics, restaurant systems, and supply chain management.
“Investing in convergence has brought out the best in our organization and has allowed Max’s Group to continue extending its lead as the largest casual dining restaurant in the Philippines,” noted Trota. “In the coming year, we hope to build on our successes, deliver more unique and memorable dining experiences to our customers, and secure sustainable growth for Max’s Group.”