Max’s nearly doubles Q1 profit to P42 million

MANILA, Philippines — Max’s Group Inc. posted a net profit of P42 million in the first quarter, nearly doubling the organic net income of  P22 million in the same period  last year.

The significant increase in net income was achieved despite one month of strict lockdown in January.

Same store sales grew by 23 percent and are expected to further recover for  the rest of the year, proving the organic strength of MGI’s brands.

Revenues, which comprise of restaurant sales, commissary sales, franchising, and other revenue, increased by 18 percent to P2.17 billion.

“Our results for the first quarter, 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 MGI chief executive officer  Robert Ramon Trota.

Trota sees recovery continuing amid ongoing relaxation of government restrictions.

“As planned, our dine-in brands Max’s and Pancake House, which have been managed for profitability during the pandemic, realized significant growth towards the back-end of the quarter. We are expecting that as the market continues to open up, the recovery of these brands will be even more vibrant, giving our margins a boost,” Trota said.

MGI president Ariel Fermin said  the group is “cautiously optimistic  in the transformative possibilities for MGI, both for the balance of this year and over our next 3-5 year runway.”

“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,” Fermin said.

As of end-March, the company’s store network reached  14 territories, with 603 Philippine sites and 62 stores situated across various locations in North America, the Middle East, and Asia.