Philippines’ Max’s Group profit nearly doubles in Q1

Its revenue jumped by 18% to P2.17b.

Philippines’ Max’s Group, Inc. (MGI) net income nearly doubled year-on-year (YoY) in the first quarter of 2022 to P42m, from P22m in the same period last year despite the strict lockdown in January.

In a statement, MGI saw its revenues jump 18% YoY to P2.17b, whilst its systemwide sales reached P3.55b.

“Local sales were still tempered as a result of the strict lockdown in January due to the Omicron surge, while international business continues to flourish, surpassing even pre-COVID levels,” the group said.

The group said it recorded significant growth in March, posting a 14% month-on-month increase as restrictions eased, with its core brands,  Max’s Restaurant, Pancake House, Yellow Cab Pizza Co., and Krispy Kreme seeing “upsides with the relaxed restrictions, and are expected to further realise gains as dine-in continues to surge amidst heightened mobility.”

Meanwhile, its same-store sales grew 23% and are seen to recover during the rest of the year.

“Our results for Q1, even more markedly so in March, are an indication of strong demand for our brands and patronage of our core of core, which are available both in traditional brick-and-mortar spaces, and expanded to business-to-business and off-premise platforms,” said Chief Executive Officer Robert Ramon F. Trota. 

Trota added that the group's dine-in brands Max’s and Pancake House, which were managed for profitability amidst the pandemic, saw significant growth towards the back-end of the quarter but are expected to see a “more vibrant” recovery as the market continues to open up.

MGI President Ariel P. Fermin said that they will continue to expand the group’s reach across all channels such as cloud kitchens, retail outlets, and e-commerce platforms.

“After squeezing three years of transformation into three quarters of execution, we are confident in the momentum we’ve built and are proud to see the results of the fruits of our labor. We are cautiously optimistic in the transformative possibilities for MGI, both for the balance of this year and over our next 3-5 year runway,” Fermin said.

“The execution of our strategy will have long-term benefits for the Group as we nurtured demand from our fans, while crafting an economic model surpassing the margins of our pre-pandemic levels,” he added.

As of 31 March 2022, the Company’s store network is present in 14 territories, with 603 sites in the Philippines and 62 stores located across  North America, the Middle East, and Asia.