Max's Group swings to net loss in Q1

Earnings of casual dining operator Max's Group Inc. (MGI) swung to a net loss in the first three months of the year, as business operations were disrupted by lockdowns imposed to curb the spread of coronavirus disease 2019 (COVID-19).

In a regulatory filing, MGI reported a first-quarter net loss of P169.28 million, forcing the company to scale down overhead costs and controlling working capital spend. 

The latest figure is a reversal of the P138.57 million net income the same period last year.

Consolidated revenues for the three-month period fell 18.8% to P2.72 billion from P3.35 billion.

"The cumulative impact of temporary store closures, dine-in restrictions and various fixed costs have resulted in a swift reversal from last year's performance," said Robert Trota, president and chief executive officer of MGI.

"We anticipate that this trend will continue through the second quarter as well. Despite our conservative outlook, we are gradually making progress as we mindfully re-open more locations across our network," he added.

Metro Manila, along with several high-risk areas, was under the enhanced community quarantine (ECQ) from March 17 to May 15, followed by a modified enhanced community quarantine (MECQ) until May 31.

With this, MGI said it has put on hold rollout plans for new store openings, and it continues to do a comprehensive review of its current store network.

"Our goal is to successfully execute strategic shifts to thrive within the 'New Normal'," said Ariel Fermin, MGI group chief operating officer.

"We have cut the tail of margin-dilutive products, thus streamlining operations in stores and commissaries," he added.

MGI's portfolio includes brands such as Max's Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Sizzlin’ Steak, Maple, Kabisera, Le Coeur De France, and Singkit.—AOL, GMA News