SHAKEY’s Pizza Asia Ventures, Inc. (SPAVI) reported single digit growth in earnings for the first quarter of 2018, but remains positive for the rest of 2018.
In a statement issued Friday, SPAVI said it posted a net income of P184 million for the first three months of the year, 6% higher than the P173 million it realized in the same period last year.
The listed firm noted that systemwide sales went up by 10% to P2.2 billion for the period, on the back of a 2% increase in same-store sales alongside its store expansion. SPAVI opened four outlets from January to March, bringing its total store count to 212.
“We are pleased to have achieved a double-digit sales growth for the first quarter of 2018 despite what is typically a seasonally weak quarter and a high base last year,” SPAVI President and Chief Executive Officer Vicente L. Gregorio was quoted as saying in a statement.
With this, total revenues rose by 6% to P1.8 billion for the quarter.
Input costs pulled down the company’s margins to 28.8% for the period, lower by 110 basis points year-on-year.
Despite what SPAVI described as a continued competitive environment this year, the company remains optimistic that it will achieve positive momentum for the balance of 2018 given its implementation of marketing initiatives to boost the Shakey’s brand.
SPAVI expects to open 16 new branches for the rest of the year, allowing it to end 2018 with its target of 228 stores.
The company looks to sustain its same store sales growth for the balance of 2018, in order to hit the target band of 3-5%.
“Though we did anticipate a relatively slower start to the year, we now expect faster growth in succeeding periods as promotional and pricing strategies have already been put into place,” Mr. Gregorio said.
Shares in SPAVI fell by 1.95% or 28 centavos to close at P14.10 each on Friday. — Arra B. Francia