Max’s Group suffers P602.0-M net loss in H1 due to COVID-19

Casual-dining restaurants chain Max’s Group Inc. sustained a financial bleeding in the first half of 2020, blamed on the full impact of strict lockdown measures on the food services sector.

In a disclosure to the Philippine Stock Exchange, Max’s said it registered a net loss of P602.9 million, a reversal from P336.4 million net income in the same period last year.

For the second quarter alone, the company booked a net loss of P433.6 million, a turnaround from P227.9 million net income year-on-year.

“The drop was primarily due to the full impact of COVID-19 quarantine measures in the Philippines, as well as government restrictions in all other countries and territories where the company operates,” Max’s said.

“For most of the second quarter, local operations relied primarily on delivery and take-away channels. Mall locations in the Philippines, which comprised nearly half Max’s local store network were also mandated to cease operations until early May in order to contain the COVID-19 pandemic,” it said.

For the first half, systemwide sales amounted to P5.6 billion, down 42.5% from the P9.7 billion a year earlier with same store sales decline of 26.5%.

Revenues for the period stood at P3.8 billion, a 46.2% decrease versus 2019.

“The poor performance for the second quarter of the year was, as expected, a result of the historic challenges the industry faces during this global pandemic. We have taken this opportunity to leverage our core sources of strength to underpin a strategic transformation geared towards our eventual recovery,” Max’s president and CEO Robert Trota said.

“During the course of this quarantine period, we have deliberately focused growth via our core brands: Max’s Restaurant, Yellow Cab Pizza Co., Krispy Kreme, and Pancake House. We have diversified our consumer services and platforms in response to ongoing behavioral shifts. We have likewise taken decisive steps to enact disciplined cost and cash management across all levels of the business from the commissaries, stores, and head office. Although the current environment remains capricious, our goal to renew the business is unwavering,” Trota said.

As of June 30, 2020, the company’s store network totaled 745 locations, with 686 Philippine sites and 59 situated across various locations in North America, the Middle East, and Asia.

Out of the 745 stores in the country, 85% or 630 stores were operational.—AOL, GMA News