Max’s Group Reports First Half 2017 Financial Results

Max’s Group Inc. (‘MGI’, the ‘Company’) systemwide sales increased 12% to P829 billion for first half 2017 from P7.43 billion for first half 2016. Topline grew 11% t0 P6.05 billion from P5.43 billion as of 30 June 2016. Restaurant sales rose 11% to P5.04 billion from P4.53 billion anchored on new store openings and steady same store sales performance.
Furthermore, commissary sales went up 7% to P674.04 million from P630.87 million owing to a growing number of franchised outlets. Meanwhile, revenues from new franchises, royalty and continuing license fees gained 23% to P333.65 million compared to P270.52 million for first half 2016 due to additional franchise sign-ups and a larger recurring income stream. As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P710.03 million translating to a net income of P331.72 million, up 12% versus P295.33 million year-on-year.
“We are happy with the results despite an increasingly challenging environment. Moving into the next quarter, we have lined up exciting product initiatives to cushion cyclicality effects during wet season.” – Robert F. Trota, President and Chief Executive Ocher of Max’s Group, Inc.
From January to June, Max‘s Group opened 41 new stores including ’6 outlets overseas bringing its total network to 650 branches of which 53 are situated abroad. The Company intends to build another 25-30 stores for the balance of the year.
On the international front, MGl is focused on operationalizing its current pipeline of around 140 stores across various locations in North America, Middle East and Asia. For 2017, the Company has secured two development contracts to establish at least 22 Yellow Cab outlets in Vietnam, Brunei and East Malaysia within five years.
“While efforts are centered on expanding physical presence, we are constantly on the lookout for opportunities to penetrate new geographies.” -Mr. Peter H. King, Chief Executive Officer of Max’s Group International
For the period, the Company faced headwinds amidst escalating prices of input components and stiffer industry competition. Nevertheless, it continued to launch notable promotional campaigns such as Chicken All-You-Can for Max’s Restaurant and World Pizza Day for Yellow Cab, both of which were well-received by customers.
”We expect prevailing economic conditions will remain supportive of our business,“ concluded Mr. Trota.
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