From a P740 million profit in 2019, the Max’s Group swung to a P1.68 billion loss as its operations were severely impacted by the lockdowns to help contain the spread of the virus.
The net loss includes aggregate one-off costs after-tax of P727 million associated with the group’s business reorganisation.
“This extraordinary year was a reflection of the global restaurant industry performance amidst the COVID-19 pandemic,” said MGI president and CEO Robert Ramon F. Trota.
“Nevertheless, we have taken this opportunity to overhaul our operating structure for a nimbler f uture. We have chosen to focus on our core brands of Max’s Restaurant, Yellow Cab Pizza Co., Krispy Kreme, and Pancake House to maintain market relevance through channel and menu innovation, while likewise optimizing our store network and overall cost structure,” he added.
Despite the challenges brought on by the pandemic, MGI continued to strategically invest in opening stores with its partners both locally and abroad.
Trota said the group’s international markets have demonstrated remarkable resilience, especially Yellow Cab and Krispy Kreme.
For the fourth quarter, however, MGI saw a significant recovery in its financials as it registered systemwide sales – comprised of sales generated by both company-owned and franchised stores—of P3.01 billion and revenues of P1.94 billion, an increase of 34% and 40% from the previous quarter, respectively. Year on year, however, SWS fell by 46% to P5.57 billion.
The group ended 2020 with a total of 663 stores globally: 604 in the Philippines and 59 situated in various locations in North America, the Middle East and Asia. Out of the total, 95% or 630stores were operational.
“We are determined to come roaring out of this temporary downturn of 2020, having accelerated three years of strategy into three quarters of execution,” said MGI chief operating officer Ariel P. Fermin.