MANILA, Philippines - Max’s Group Inc. reported a net income of P561.74 million in 2016, up 12 percent year on year on higher sales.
Revenues rose 10 percent to P11.44 billion as sales increased by 12 percent to P15.34 billion.
“We are confident in sustaining the same momentum moving into 2017. We firmly believe prevailing economic conditions will remain supportive of our business,“ said MGI president and CEO Robert Trota.
“We were able to successfully execute our strategies amidst a rapidly intensifying competitive environment,” he added.
Restaurant sales went up 10 percent to P9.42 billion as the company opened 77 new stores.
Sales from online and delivery expanded 24 percent to P1.08 billion while commissary sales were relatively flat at P1.26 billion owing to closures of certain franchised outlets.
Revenues from new franchises, royalty and continuing license fees grew 54 percent to P766.72 million, mainly driven by a growing recurring income base and additional overseas franchise contracts.
The company mitigated pricing headwinds from rising input components with lower logistics and utility expenses.
Of the 77 new stores that opened last year, 16 were located overseas. These new stores brought the group’s total network count to 623 branches with 49 situated abroad.
This also put the company on track to reaching its objective of establishing 1,000 outlets including 200 international by 2020.
This year, MGI is pouring in P750 million to P800 million for the rollout of another 60 to 70 new stores for its core brands Max’s Restaurant, Pancake House, Yellow Cab Pizza and Krispy Kreme.
Offshore, MGI continues to build on its expanding pipeline of over 140 stores slated to open in the coming years.
Last year, the company secured eight development agreements for at least 80 stores across various geographies. Among the notable markets penetrated in 2016 include Yellow Cab Pizza in China and Singapore.
Peter King, CEO of Max’s Group International, said the company remains bullish on the pace of its global business.
“Our focus this year is to boost recurring income by accelerating store development. Nonetheless, we shall constantly be on the lookout for fresh territories,” King said.