SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) trimmed its net loss to P14.71 million in the second quarter as it recorded higher revenues.

SPAVI said in a stock exchange disclosure on Wednesday that its total comprehensive loss for the April-to-June period is an improvement from the P403.54-million total comprehensive loss posted a year ago.

Revenues of the company during the quarter rose 36.9% to P1.27 billion. Of the total, net sales amounted to P1.21 billion while royalty and franchise fees contributed P61.89 million.

SPAVI’s system-wide sales for the quarter rose 43% to P1.63 billion, while costs of sales also increased 13.1% to P1.02 billion.

For the first half of the year, SPAVI recorded a P14-million net income, a reversal of the P289.96-million net loss it had in the same period last year.

Revenues of the company for the January-to-June period fell 7.6% to P2.55 billion from P2.76 billion. Of the total, net sales accounted for P2.43 billion while the remaining P116.25 million came from royalty and franchise fees.

SPAVI said its system-wide sales during the first half reached P3.3 billion, 4% lower than the P3.45 billion it had in 2020. Costs of sales also dropped 13% to P1.98 billion.

“Earnings before interest, tax, depreciation, and amortization (EBITDA) for the first six months of the year stood at P404 million. EBITDA margins reverted to a double-digit level of 15.9%, a significant improvement from last year’s 6.5%,” SPAVI said.

Vicente L. Gregorio, SPAVI President and Chief Executive Officer, said the company’s first-half performance shows the resilience and relevance of its brands amid the pandemic.

“We were able to leverage our industry-leading margins and operating capabilities to strategically pivot our growth plans and cost structures. The efforts, prudence, and discipline built amidst extreme challenges helped us weather through the past 15 months,” Mr. Gregorio said.

“We are still very much in uncertain times; thus, we remain cautiously optimistic, anticipating uncertainties that may potentially delay the path to recovery,” he added.

SPAVI opened 16 new outlets in the first half, which brought its total store network count to 295 stores. The new stores have smaller footprints and lower investment requirements ensuring short payback period and high capital returns.

Amid the return of some areas to stricter lockdown protocols, Mr. Gregorio expects the impact to be partially cushioned by the sustained growth in the company’s off-premise business.

“More importantly, we are encouraged that the vaccination rollout in the country has been ramping up in the past few months. We hope this will increase mobility and boost consumer confidence to fuel our recovery,” Mr. Gregorio said.

“In these tough times, we strive to keep Shakey’s standing as a trusted chain of top-of-mind food brands. Central to this is the expansion of our store network, value creation for our guests, and investments in our off-premise presence,” he added.

On Wednesday, shares of SPAVI at the stock exchange ended flat at P7.90 each. — Revin Mikhael D. Ochave