Pancake House more than doubles income to P74M

MANILA, Philippines - Lorenzo-owned casual dining restaurant chain Pancake House Inc. posted a net income of P73.66 million last year, more than double the P35.56 million recorded in 2009, due to outlet consolidations and realignment of resources to profit-generating activities.

Aside from its flagship store Pancake House, the group also owns and operates various other restaurant brands, namely Dencio’s, Kabisera, Teriyaki Boy, Singkit, Sizzlin’ Pepper Steak and Le Coeur De France.

In a financial report submitted to securities regulators, Pancake House said consolidated revenues slightly went up to P1.84 billion from P1.82 billion due to increased company-owned restaurant sales.

Total system-wide sales of the group amounted to P2.3 billion, translating to a compounded annual growth rate of 3.2 percent over a three-year period.

Commissary sales fell 5.8 percent to P311 million due to several closure of franchised outlets awaiting relocation. Franchise revenues, on the other hand, amounted to P87 million compared to P86 million a year earlier.

Despite increasing costs of raw materials and supplies, rental and utility rates, management has been successful in its implementation of its plans and programs such as expanded synergies among the seven brands, strategic purchasing, resource optimization.

Operating expenses rose 6.7 percent to P624 million due to the continuing upward trend of occupancy costs such as utilities, rent, and electricity, among others.

Consolidated EBITDA, meanwhile, remained strong at P270 million with a sustainable margin of 16.6 percent. This is due to the company’s efforts in mitigating the continuous increase in costs and intensifying its targeted marketing and promotional campaigns.

 The group said it would continue to consolidate some outlets or relocate them in more strategic, high-traffic areas such as restaurants in hospitals, international terminals and business centers. As of end-December 2010, it had a total of 171 stores across the country.