LISTED casual dining chain operator Max’s Group Inc. (MGI) posted a 12 percent increase in profit last year on the back of strong sales across its restaurant brands.
MGI told the stock exchange on Wednesday its net income reached P561.74 million in 2016, up 12 percent from P501.39 million in 2015.
It said revenues improved by 10 percent to P11.44 billion from P10.37 billion the previous year on higher system-wide sales — or the measure of all sales from company-owned and franchised stores — which grew 12 percent to P15.34 billion.
“We were able to successfully execute our strategies amidst a rapidly intensifying competitive environment. Overall, it was another productive year for us,” Robert F. Trota, MGI president and chief executive officer (CEO), said.
Restaurant sales climbed 10 percent to P9.42 billion driven by new stores opened and steady same-store sales performance.
Last year, MGI rolled out 77 new stores, including 16 overseas branches, bringing its total network to 623 branches with 49 located abroad. The company is on track with its goal to have 1,000 outlets—including 200 stores abroad—by 2020.
Online and delivery revenues came in 24 percent higher at P1.08 billion while commissary sales were relatively flat at P1.26 billion due to closures of certain franchised outlets.
Revenues from new franchises, royalty and continuing license fees rose by 54 percent to P766.72 million, while cost of sales eased to 72.2 percent from 72.6 percent in 2015. As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P1.47 billion.
For this year, MGI has earmarked about P750 million to P800 million in capital expenditures largely for the rollout of another 60 to 70 new stores.
Offshore, the company continues to build on its expanding pipeline of over 140 stores slated to open in the coming years.
“We remain bullish on the pace of our global business. Our focus this year is to boost recurring income by accelerating store development. Nonetheless, we shall constantly be on the lookout for fresh territories,” Peter H. King, Max’s Group International CEO, said.