Pancake House nets P36 million in 2009

MANILA, Philippines - Lorenzo-owned casual dining chain Pancake House, Inc. posted a net income of P35.56 million last year, down 22 percent from P45.7 million in 2008 on lower revenues as operations were affected by the super typhoons that hit the country. The group registered consolidated revenues of P1.82 billion, slightly lower than the previous year’s P1.86 billion. Total system-wide sales rose two percent year-on-year to P2.2 billion, P1.4 billion of which accounted for restaurant sales or an improvement of 3.5 percent.

Pancake House, which has traditionally been associated with specialty pancakes and waffles, also owns and operates various restaurant brands directly or through its subsidiaries under the brands Dencio’s, Kabisera, Teriyaki Boy, Singkit, Sizzlin Pepper Steak and Le Coeur De France.

The group’s commissary sales fell 24 percent to P330 million from the year earlier figure of P409 million due to decreased revenue generating auxiliary services to franchisees from P90 million to P86 million.

Consolidated operating expenses rose to P585 million from P540 million due to opening of new outlets. Sales and marketing expenses, however, remained the same level as two years ago.

As of end-December 2009, Pancake House had consolidated assets of P1.4 billion as against liabilities of P622.5 million.

The group’s EBITDA margins improved to 16.2 percent from 15.7 percent in 2008.

 Recurring net income amounted to P64 million mainly from the stable performance of the restaurant operations and improved management of internally generated resources.

The group opened 29 stores, last year, bringing its total network to 174 stores as of end-December 2009 — 79 of which are flagship Pancake House, 25 Dencio’s, 38 Teriyake Boy, 17 Sizzlin Pepper Steak, 15 Le Coeur de France.