Max’s Group Inc., a listed casual dining firm, reported a sixfold or 561 percent increase in its first half net income to P247.74 million as improved efficiencies from the company’s continued consolidation improved earnings.
Revenue for the first half grew 166 percent from a year ago to P4.88 billion.
“I think the reason is due to the two initiatives we’re doing: continuing consolidation, as we’re still growing and as we extract economies of scale, we produce high-quality products,” Dave Fuentebella, MGI chief financial officer (CFO), said in a briefing on Friday.
“We continue to build on the momentum gained in the first quarter and expect to sustain this growth trajectory on the back of well structured operations,” said MGI president and chief executive officer Robert F. Trota.
In the first six months the company opened 18 stores out of the targeted 80 to 90 new stores this year. Fuentebella said bulk of the target, or 60 more stores, will be opened in the second half of the year.
From April to June, the company opened 13 outlets, including four in the international market. The group also closed down 10 branches of Le Coeur de France, which will undergo a facelift in branding and store and product quality. As of July, MGI had 535 outlets.
The MGI CFO said the group is looking at expanding its international business in the long run.
“At this point, international business is still below 10 percent of sales. As of now, it’s still minor but we expect it to be a contributor in the next couple of years,” Fuentebella said.
Max’s currently has a presence in Malaysia and Brunei for Southeast Asia, Saudi Arabi and Qatar for the Gulf states, as well as North America.
“We’re looking to expand our brands in countries within that region. We are exploring other parts of the Gulf region and Southeast Asia,” Fuentebella said.