MANILA, Philippines - Pancake House Inc. reported a slight drop in its net income during the first half of the year to P21.08 million due to higher cost of sales and operating expenses.
In a financial report submitted to the Philippine Stock Exchange, Pancake House said consolidated revenues went up 2.7 percent to P905.9 million on higher restaurant and commissary sales.
Restaurant and commissary sales amounted to P 710 million and P153 million, respectively, compared to the previous year’s P697 million and P141 million.
But while labor costs declined, combined restaurant and commissary cost of sales increased from 36.1 percent to 36.5 percent, mainly due to the higher cost of raw materials.
Also, the opening of additional outlets resulted in a 6.8 percent hike in operating expenses from P278 million to P297 million.
Sales and marketing expenses likewise increased from to P22.2 million from P15.9 million.
In the second quarter, Pancake House posted net earnings of P12.8 million on revenues of P473.19 million. The group concentrated on delivering revenues by intensifying its local store marketing campaign to bring back consumer spending into the casual dining segment through additional value for money propositions and heightened customer delight dining experience.
The Lorenzo-owned group comprises flagship restaurant Pancake House, Japanese unit Teriyaki Boy, Singkit, Sizzlin Pepper Steak, Le Coeur De France and Filipino food chains Dencio’s and Kabisera.