Max’s Group, Inc. (MGI) said earnings grew 9.4% in the second quarter amid stronger margins due to improved product bundle offerings and heightened productivity from efficiencies realized at its commissaries and supply chain.
The listed casual dining restaurant group reported a net profit of P227.88 million in the three months to June, up 9.4% from a year earlier.
Systemwide sales grew 5.9% to P5.14 billion, while total revenue increased 4.8% to P3.68 billion.
MGI Chief Operating Officer Ariel P. Fermin attributed the stronger returns to the “heightened brand relevance, improving market conditions, and the effectiveness of our enterprise-wide productivity measures.”
“Similar to previous quarters, we have consistently delivered profitable growth. We aim to continue expanding our margins through more profitable bundles, commissary modernization, and supply-chain integration,” he was quoted in a statement as saying.
In the six months to June, net profit was P366.45 million, up 10.4% from the same period last year.
Systemwide sales rose 4.7% to P9.72 billion year-to-date, while total revenue increased 4.5% to P7.04 billion.
Sales from the company’s network of restaurants rose 2.1% to P5.7 billion in the first half. Commissary sales also increased 7.6% to P860.1 million, and franchising and other revenue by 37.1% to P460.8 million. MGI attributed the growth to the expansion of its franchising operations.
Partnerships with online aggregators to expand in-house delivery operations also pushed MGI’s online and delivery sales in the first half, growing 13% to P845.5 million.
“We remain steadfast in our commitment to balance daily quality management with investments that will future-proof our business… In order to bolster our current performance and fuel our topline gains, we will continue to explore partnerships with these online platforms and strategically invest in our brands,” MGI President and Chief Executive Officer Robert F. Trota said in the statement.
The company opened 28 new stores in the six-month period, six of which are located overseas. Its network now covers 711 branches globally, of which 57 are in North America, Middle East and Asia.
MGI handles brands such as Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Sizzlin’ Steak, Maple, Kabisera, Le Coeur De France and Singkit. — Denise A. Valdez