Max's says economy boosted H1 net income

Max's Group Inc. said it benefited from the country's economic growth in the first half of the year.

The casual-dining restaurant chain on Wednesday reported a net income of P295.33 million in the first half of 2016, up 4 percent from P284.67 million a year earlier.

“The results are consistent with our growth story and the overall state of the economy. For the second half, we will continue to execute a balanced store rollout in key strategic areas,” said Robert F. Trota, Max’s president and CEO.

“For the remainder of 2016, we share in the optimism on the general macro climate of the country. Domestic consumption is still seen to stir economic activity in the long-term," Trota added.

Max's revenue stood at P5.43 billion, up 10 percent from P4.93 billion.

Restaurant sales reached P4.53 billion, up 9 percent from P4.16 billion, driven by new store openings and stable same store sales performance, the company said.

Commissary sales totaled P630.87 million, up 13 percent from P559.63 million.

Revenue from franchise, and continuing license fees grew by 28 percent to P270.52 million from P211.66 million.

System-wide sales grew by 13 percent to P7.43 billion from P6.55 billion.

In the first quarter of the year, Philippine economic output grew by 6.9 percent, the fastest since 2013 and the highest growth rate in Asia.

"As such, to capitalize on this growth outlook, we are looking to close the year with around 60-70 new stores,” Trota noted.

The company said it has opened 35 stores, including an international outlet for Max’s Restaurant in Kuwait.

To date, Max's operates a network of 600 stores including 38 abroad.

The company has inked 11 development agreements for its offshore business for 2016.

The agreements covered 70 Yellow Cab Pizza stores across China, Saudi Arabia, United Arab Emirates, Singapore, Egypt and Jordan, 13 Pancake House outlets between Qatar and United Arab Emirates, 10 Sizzlin’ Steak branches in Vietnam, and 3 Max’s Restaurant in San Diego, California.

Combining existing operations, Max's has a secured overseas pipeline of over 130 stores slated to open in the coming years.
 
“We have surpassed expectations due to the overwhelming response of foreign markets to our international expansion program. This clearly shows that our brands are well-primed for the global stage,” said Peter H. King, CEO of Max’s Group International. — Ted Cordero/VDS, GMA News