Max’s Group Q2 income up 34%

MAX’S Group, Inc. (MGI)’s net income expanded by 34% in the second quarter of the year, as the company implemented operational efficiency initiatives to help temper rising costs of raw materials.

In a statement issued Wednesday, the listed casual dining restaurant group said net income picked up to million for the April to June period, accelerating from the million posted in the same period a year ago.

Systemwide sales went up by 11% to P4.9 billion, as same-store sales growth stood at six percent. New store sales also grew by five percent during the quarter.

“The results underpin prior initiatives to reorganize ourselves and invest on building professional capabilities to spearhead long-term growth,” MGI President and Chief Executive Officer Robert F. Trota said in a statement.

MGI has been consolidating its businesses in the previous months, merging a number of subsidiaries to achieve more efficient operations.

“We have effectively regrouped into various strategic functional teams, each with defined and uniformed objectives that promote cohesiveness and productive interactions within the group. This setup has allowed us to leverage and benefit from additional operational efficiencies across the business,” Mr. Trota added.

MGI’s systemwide sales expanded by 12% to P9.3 billion in the January to June period.

First half revenues meanwhile grew by 11% to P6.7 billion, while net income was flat at P332 million during what MGI described as ”cautious” start to the year.

MGI opened a total of 21 new stores over the first six months of 2018, three of which are located overseas. The company now has 678 branches, with 54 across several sites in North America, the Middle East, and Asia.

The company expects to sustain its growth in the remaining half of the year, amid the continuing headwinds in the prices of raw materials.

MGI Chief Operating Officer Ariel P. Fermin noted the company will continue to pursue expansion via franchising. It earlier said that it targets to have a 65% to 35% mix of franchised versus company-owned stores by 2020 when it will have 1,000 stores.

MGI’s brands include Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Meranti, Sizzlin’ Steak, Maple, Kabisera, Le Coeur de France, and Singkit. —