MAX’S Group, Inc. (MGI) reported a 12% increase in net income in the first half of the year, on the back of new store openings and steady same-store sales performance.
In a statement, MGI said its net income reached P331.72 million during the January to June period from P295.33 million in the same period last year.
System-wide sales went up 12% to P8.29 billion for the first semester, as top-line rose 11% to P6.05 billion.
Sales at its restaurants, which include Max’s, Pancake House and Yellow Cab Pizza, likewise increased by 11% to P5.04 billion.
MGI also noted a 7% increase in commissary sales to P674.04 million for the six-month period, due to a growing number of franchised outlets.
Revenues from new franchises, royalty and continuing license fees also jumped 23% to P333.65 million, as MGI saw more franchise sign-ups and a larger recurring income stream.
“We are happy with the results despite an increasingly challenging environment. Moving into the next quarter, we have lined up exciting product initiatives to cushion cyclicality effects during wet season,” said Robert F. Trota, president and chief executive officer of Max’s Group, Inc. was quoted as saying in a statement.
From January to June, MGI opened 41 new stores including six outlets overseas, bringing its total network to 650 branches, 53 of which are abroad.
MGI said 61% of its stores are company-owned, 31% are local franchises, and 8% are international stores.
Dave T. Fuentebella, chief financial officer of MGI, cited the new approach in promotional campaigns as one of the factors behind its profit increase. For instance, the Chicken-All-You-Can for Max’s Restaurant and World Pizza Day for Yellow Cab were both well-received by customers.
“We expect prevailing economic conditions will remain supportive of our business,” Mr. Trota added.
Shares in MGI fell 30 centavos or 1.55% to close at P19 each on Tuesday. — Patrizia Paola C. Marcelo
