Max’s Group earnings flat as expenses rise
Leading casual dining restaurant operator Max’s Group Inc. said profit was largely flat in the first semester at P332 million as higher prices of raw materials weighed on its bottomline.
In the second quarter alone, however, MGI reported a 34 percent jump in net income to P208.3 million as systemwide sales increased by 11 percent to P4.9 billion on robust same-store sales growth of six percent and healthy new store sales of five percent.
The strong second quarter results reflect a notable rebound, which MGI chief operating officer Ariel Fermin attributed to cost-efficiency measures undertaken by the management.
“We are determined to carry this momentum into the next quarter, fully aware of the headwinds on cost upcharges. Nevertheless, we are confident that our strategies will enable us to stay resilient amidst these conditions,” Fermin said.
Fermin said MGI would also continue to “aggressively pursue franchising opportunities in both existing and new markets while keeping focus on customer-centric activities to boost transaction volumes and rationalizing cost structure.”
In the firat semester, systemwide sales rose 12 percent to P9.3 billion. Restaurant sales went up 11 percent to P5.6 billio, driven by the opening of 10 new company-owned and 11 franchised outlets coupled with an increase of nine percent in transaction count.
Commissary sales grew 19 percent to P799.3 million due to a growing base of franchising operations. Online and delivery revenues expanded by 16 percent to P748.6 million.
MGI ended June with a total store network of 678 branches in and outaide the Philippones, of which 54 are located in North America, the Middle East and Asia.