Shakey's incurs P247-M net loss in 2020

Shakey's Pizza Asia Ventures Inc. on Monday reported an improvement in its fourth-quarter 2020 performance, but this was not enough to erase losses incurred earlier in the year due to the COVID-19 lockdowns.

Shakey's reported a net income of P215 million in the last three months of 2020. Its earnings before interest, tax, depreciation, and amortization (EBITDA) rose to P400 million from P6 million the previous quarter.

"We are pleased by the improvements we saw towards year-end which gave us the confidence to further invest in future growth, readying ourselves to better compete in the 'new normal whilst creating jobs amidst the Philippines' tough economic environment," said Shakey's President and CEO Vicente Gregorio.

Despite the growth in the latter part of the year, the company ended 2020 with a net loss of P247 million to reflect a reversal of its P862-million net income in 2019. The lockdowns forced the temporary closure of 91% of its store network at the end of March.

"2020 was obviously a one-of-a-kind year amidst the COVID-19 pandemic and the restaurant industry was one of the hardest hit," said Gregorio, but noted that the company managed to pull through with positive cash flows that hit P635 million for the year.

"Moving into 2021, the ability to stay nimble and adapt to the ever-changing environment will be of utmost importance. We are hopeful that dine-in continues to recover this year, but are nonetheless managing the fact that guests will likely continue to need convenient and flexible out-of-store options," he added.

Shakey's earlier announced plans to restart a store network expansion put on hold in 2020 due to the pandemic. The stores will have smaller footprints and reduced investment requirements to ensure shorter payback periods and a high return on capital.

The company is also looking to build locations that have the Shakey's, Peri-Peri Charcoal Chicken, and R&B Milk Tea brands in one location to maximize its existing asset base.

It will also roll out several ghost kitchens or kitchen extensions to boost its delivery business, alongside its "31 Minute, If It's Late, It's Free" guarantee in select areas across Metro Manila.

"Despite continued uncertainty around the COVID-19 pandemic and the various restrictions that go along with it, we are confident that this year will be a better one for us," Gregorio said.

Shares in Shakey's closed Monday at P7.07 apiece, down by a centavo or 0.14% from last Wednesday's finish of P7.08. — DVM, GMA News