Max’s Group Net Income Grows 18% for the 1st Quarter of 2019
Max’s Group, Inc. (PSE: MAXS), the country’s largest casual dining restaurant group, reported today the operating results for the first quarter of 2019.
The Company generated systemwide sales of PhP4.6 billion for first quarter 2019, up 3.4% from PhP4.4 billion for the same period in 2018. Total revenues likewise rose year on year by 4.2% to PhP3.4 billion from PhP3.2 billion. MGI’s EBITDA stood at a 17.7% increase to PhP376 million, while net income rose by 17.6% to PhP146 million. However, with the newly adopted Philippine Financial Reporting Standards (PFRS) 16, which provides guidelines for accounting on leases, this would translate to an EBITDA of PhP529 million (+PhP153 million) and a net income of PhP139 million (-PhP7 million).
Robert F. Trota, President and Chief Executive Officer of MGI stated, “Our improved year on year performance is attributed to the effectiveness of our reshaped growth strategies in 2018, particularly our focus on franchising, cost stabilization, and customer-centric activities. We are determined to build on the momentum of this quarter while remaining cognizant of the heightened environmental and competitive pressures within the industry.”.
As communicated over the last year, in order to accelerate long-term expansion with effective use of cash, MGI is making a strategic pivot to a franchising-led market development. Hence, franchising income notably gained by 47.5% to PhP225.1 million from PhP152.6 million, while commissary sales improved by 7.0% to PhP404.1 million from PhP377.7 million.
“We continue to enhance the relevance of our brands in their respective consumer spaces, and collectively strengthen the leadership position of MGI in the casual dining market. We take pride in providing our customers the most compelling and innovative selection of food category options. Through the strategic capabilities that we have built over the years, notably analytics, restaurant systems and an integrated supply chain, we are generating a more profitable mix and increasing operational efficiencies,” shared Ariel P. Fermin, Group Chief Operating Officer.
From January to March 2019, MGI opened a total of 14 new stores, including two in the UAE, one in Saudi Arabia and one in Canada. This sums the Company’s total store count to 706 branches, with 59 across various territories in North America, the Middle East, and Asia.
