LISTED restaurant operator Max’s Group, Inc. (MGI) saw a 68.3% decline in its third-quarter net income to P22 million from P68 million last year.
Revenue rose by 2.3% to P2.97 billion from P2.91 billion a year ago, MGI said in a stock exchange disclosure on Thursday.
System-wide sales fell by 1.6% to P4.54 billion while earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 33.4% to P286 million.
“MGI achieved a 1.7% blended same-store sales growth (SSSG) in the third quarter. Key brands Max’s Restaurant, Pancake House, and Krispy Kreme posted an SSSG ranging from 2.4% to 6.9%, underscoring the resilience of the group’s core offerings even in price-sensitive markets,” it said.
For the first nine months, MGI recorded a 40.9% decline in net income to P186 million while EBITDA fell by 24.5% to P1.08 billion.
“The dip in net income and EBITDA is mainly due to one-time store closure expenses, higher consultancy and professional fees associated with process improvements and system efficiencies and increase in administrative labor costs,” MGI said.
Nine-month revenue rose by 0.8% to P8.82 billion on optimization of retail trade areas, focusing on high-potential locations while closing suboptimal stores to strengthen the company’s store network for future expansion.
System-wide sales dropped by 0.6% to P13.72 billion due to the structured wind down of underperforming stores.
“We are pleased with the progress we’ve made in the first nine months of 2024, despite some external challenges. Our strategic focus on optimizing our store network, improving operational efficiencies, and investing in brand innovations will pave the way for sustained growth and consumer loyalty,” MGI President and Chief Executive Officer Robert Ramon F. Trota said.
“We are confident that MGI will continue to thrive and meet our long-term goals,” he added.
As of end-September, MGI operates 567 locations in the Philippines and 59 stores internationally, with 17 new stores opened and key locations renovated during the period.
MGI’s brand portfolio consists of Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, and Teriyaki Boy.
The company also operates Dencio’s, Meranti, Sizzlin’ Steak, Maple, Kabisera, Le Coeur De France, and Singkit.
On Thursday, MGI stocks dropped by 1.03% or three centavos to P2.87 per share. — Revin Mikhael D. Ochave