PIZZA chain Shakey’s Pizza Asia Ventures Inc. (SPAVI) reported 40 percent growth in net profit last year to P760 million driven by strong sales, the addition of new stores, and improved profitability.
In a statement on Monday, the country’s leading pizza parlor chain said the P760 million profit included a P90.3-million net non-recurring income as a result of a change in ownership early last year and an initial public offering (IPO) in the second half.
Without the one-offs, recurring net income increased by 40 percent to P670 million year-on-year, equivalent to a profit margin of 11 percent.
“Our industry leading performance is anchored on the superior value offering of Shakey’s, its strong management team, and a brand legacy that we have built over a 40-year history here,” Vicente Gregorio, president of SPAVI, said.
SPAVI said net income last year was boosted by a 14.3-percent rise in system-wide sales to P7.34 billion, driven by same-store sales growth of 3.9 percent and increased contribution of new stores.
SPAVI added 17 new outlets in 2016, up from 14 stores opened in 2015, bringing its store count to 184 as of end-2016.
Including streams from its in-house commissary, recurring revenues grew by 14.7 percent to P6.01 billion.
In the latter part of 2016, SPAVI implemented a corporate restructuring, which included the acquisition of its commissary which supplies bakery products to Shakey’s, as well as other food service customers.
Century Pacific Group (CPG), parent of listed tuna canner Century Pacific Food Inc., and Singapore sovereign wealth fund GIC acquired SPAVI last year.
Gregorio said the first two months of this year have been very encouraging “and we are optimistic that we will continue the strong performance into 2017.”
SPAVI plans to open 20 new stores this year to end 2017 with a network of 204 stores, including its first ever branch overseas in Kuwait, which will be opened in the third quarter of the year.
Under the company’s five-year expansion plan starting this year, it will spend P1.84 billion to build up its network to 250 to 300 stores in the next three to five years.
SPAVI is majority owned by the Po Family’s CPG and Arran Investment Pte Ltd., which is an affiliate of Singapore’s GIC Private Ltd.