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Max’s Group profit rises more than four times to P239.5M

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MAX’S Group, Inc. (MGI) reported a net income of P239.5 million in the second quarter, more than four times last year’s P55.4 million, proving the company’s “pandemic-proof” business model.

Revenues grew by 58% to P2.82 billion in the second quarter, from P1.78 billion a year ago, its financial report showed.

MGI recorded P1.05 billion in gross profit for the quarter, double last year’s P555 million and at par with its pre-pandemic figure of P1.05 billion. Its gross profit margin was at 37.2%, higher than the pre-pandemic 28.4%

“We committed to our stakeholders throughout the ongoing global health crisis that we would deliver a business model tuned to be as pandemic-proof as possible,” MGI Chief Executive Officer Robert Ramon F. Trota said in a press release on Tuesday.

“Our second quarter results prove yet again that our architecture works, even in sub-optimal operating conditions,” Mr. Trota added.

In the first half, MGI’s net income rose to P281.1 million, or 18 times higher compared with the level in the same period last year.

Its consolidated revenues amounted to P4.98 billion in the first semester, a 38% growth from P3.62 billion in the same period last year, as local market sales rose by 45%.

“Margins for the first half and second quarter reflect historic highs as compared to pre-pandemic 2019,” the company said in a report.

MGI President Ariel P. Fermin said the group is “cautiously pleased” with the results so far this year.

“It is clear to us that even as we continue to make headway in fully recovering our former sales and revenue levels, our optimized profit flow through makes us an attractive, reliable choice for our shareholders, our business partners, and our employees,” he said.

As of end-June, the company’s store network totaled 660 — 597 in the Philippines and 63 across North America, the Middle East, and Asia.

On the stock market on Tuesday, MGI shares climbed by 2.15% or 12 centavos to P5.70 apiece. — Justine Irish D. Tabile