Max’s earnings up 38% last year

MANILA, Philippines — Max’s Group Inc., a casual dining restaurant operator, reported a net income of P622 million, 38 percent higher than the previous year.

“In terms of organic profitability, the 2022 financial results reflect an eight times multiple versus 2021 and outperform pre-pandemic 2019 by 63 percent,” MGI said in a disclosure yesterday.

System wide sales amounted to P17.60 billion, growing 41 percent from the same period last year with 2021 sales at P12.52 billion. Consolidated revenues amounted to P10.98 billion, a 44 percent growth from P7.64 billion a year ago.

MGI chief exexutive officer Robert Trota said business grew despite the challenges that the organization faced since the first lockdown in 2020.

“Our business model has been tested and proven, with consistency of executed strategies, as evidenced in our recovery,” Trota said.

For the fourth quarter, SWS reached P5.04 billion, a 29 percent increase versus the same period in 2021 of P3.90 billion.

Revenues likewise grew by 39 percent, up by almost P1 billion to P3.21 billion.

Local market sales jumped by 33 percent as consumer confidence, mobility, and economics continue to revive. Similarly, the international business reported a solid 15 percent growth despite labor challenges in the North America market, with new agreements in place to further expand global reach in other markets.

Last year’s strong performance was supported by Max Group’s strong core portfolio of brands across its local and international store network.

These include dine-in brands Max’s Restaurant and Pancake House, which boosted sales while Yellow Cab Pizza Co. and Krispy Kreme managed to stay resilient.

Aside from this, MGI has also strengthened its manufacturing capabilities with the commissioning of its consolidated commissary, which expanded the group’s growth potential into manufacturing and its food retail and business to business (B2B) segments as an adjacency to its core.

MGI products are already present in supermarkets and convenience stores.

Moving forward, MGI aims to be a leader in the growing food retail category to supplement its core restaurant and commissary businesses.

“Our business now stands on a stronger foundation. Our commitment to our shareholders was that we will be more than ready when the market is ready. The remastered fundamentals that started in 2020, coupled with our strategic pivots, are not only seen in our financial performance, but also on how the group has evolved,” MGI president Ariel Fermin said.