Shakey’s Pizza swings back to profitability in H1

Casual dining restaurant chain Shakey’s Pizza Asia Ventures Inc. (SPAVI) swung to profitability in the first half of 2021 as the economy gradually reopened during the period.

In a disclosure to the Philippine Stock Exchange on Wednesday, SPAVI reported a net income of P14 million, a turnaround from the P290 million net loss posted in the same period in 2020, at the height of strict quarantine restrictions in the country due to the COVID-19 pandemic.

The company also reported a systemwide sales amounting to P3.3 billion, 4.3% short of the P3.45 billion registered last year.

In the second quarter, however, SPAVI recorded a systemwide sales of P1.63 billion, up 43% year-on-year.

The increase is driven by strong same-store sales growth (SSSG) of 31% notwithstanding the dine-in restrictions implemented at the end of March 2021, the company said.

SSSG has sequentially improved quarter-on-quarter amidst the different phases of lockdowns since the pandemic hit at the end of first quarter 2020, it added.

“The first half results are a testament to the resilience and relevance of our brands even during this most difficult period. We were able to leverage our industry-leading margins and operating capabilities to strategically pivot our growth plans and cost structures. The efforts, prudence, and discipline built amidst extreme challenges helped us weather through the past 15 months,” said Vicente Gregorio, SPAVI president and CEO.

During the first six months of 2021, SPAVI said it added 16 outlets, bringing its total store network count to 295 stores.

These new stores generally have smaller footprints and reduced investment requirements, ensuring that payback periods are kept short and returns on capital remain high, it said.

SPAVI also welcomed the entry of JE Holdings, the private investment company of the Gokongwei family, as a strategic investor at the end of the first half. 

JE Holding’s capital infusion of P1.25 billion further strengthened the company’s financial position and gives SPAVI the flexibility to pursue organic and inorganic opportunities that may arise, the company said.

“We are still very much in uncertain times, thus we remain cautiously optimistic, anticipating uncertainties that may potentially delay the path to recovery,” Gregorio said.

Due to the threat of the Delta COVID-19 variant, another round of strict lockdowns were imposed prohibiting dine-in services in the greater part of the country.

With this, SPAVI said it expects the impact to be partially cushioned by the sustained growth in their off-premise business, a driver of business performance amidst recurring dine-in restrictions.

“More importantly, we are encouraged that the vaccination rollout in the country has been ramping up in the past few months. We hope this will increase mobility and boost consumer confidence to fuel our recovery,” Gregorio said. — LA, GMA News