SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) saw earnings rise 2.5% in the first three months of the year, thanks to higher number of stores and steady margins despite the seasonally slow quarter.
In a regulatory filing, the listed full-service restaurant operator said net income was up 2.5% to P188 million from January to March, compared to P184 million in the same period a year ago.
Systemwide sales climbed 5.5% to P2.34 billion, against P2.21 billion in the same period a year ago. This resulted to a four percent increase in revenues to P1.84 billion.
“The first three months was a slow start to the year, typical of the post-holiday season, but also reflective of continued weakness in consumer sentiment with last year’s inflationary pressures,” SPAVI President and Chief Executive Officer Vicente P. Gregorio said in a statement.
“Growth was also affected by the timing of Holy Week, a strong sales period for our business which falls in the second quarter of this year versus the first quarter in the last. Finally, we are seeing continued entry of new players and aggressive promotional activity in the industry,” he added.
Despite tighter competition in the industry, SPAVI maintained its net income margin of 10%, while return on equity stood at 19%.
SPAVI is keeping its double-digit profit growth guidance for the year, as it hopes to recover in the next nine months.
The company opened one new store in the Philippines and one abroad, bringing its store count to 229 in the country and three overseas.
It is scheduled to open seven more stores in the second quarter, as part of plans to have 20 new stores for a total of 248 outlets nationwide by end-2019.
SPAVI also looks to have at least 20 outlets overseas in the next few years, as it already has two international area development agreements.
Apart from its Shakey’s store expansion, the company has also started bringing in other brands to its portfolio. The company is on track to close its acquisition of Peri-Peri Charcoal Chicken this June.
“We are looking forward to better performance for the balance of the year, with the addition of the Peri brand to our platform and seasonally stronger sales in the second half…Overall, we continue to remain positive in the long-term growth prospects of the casual dining space,” Mr. Gregorio said.
Shares in SPAVI fell 4.05% or 54 centavos to close at P12.80 each on Tuesday. — Arra B. Francia