Shakeys net income up 7% to R396 M

Shakey’s Pizza Asia Ventures (PIZZA), the Philippines’ leading chained full-service restaurant, reported a 7 percent improvement to R396 million in the first half of 2018 from the R371 million generated in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said this is a slower increase relative to topline as a result of persistent cost pressures.

PIZZA said its system-wide sales growth rate rose to 13 percent during the first six months of the year from the 10 percent seen in the first quarter.

Systemwide sales, a measure of total sales for both companyowned and franchised stores, stood at R4.6 billion as of end June 2018. In the second quarter alone, it rose 16 percent to R2.4 billion.

This was on the back of an acceleration in same-store sales growth (SSSG), with the Company posting a 9 percent SSSG during the second quarter relative to the 2 percent in the quarter before.

SSSG for the first half currently stands at 5 percent, the high end of the Company’s 12month target of 3 to 5 percent for the year.

“We are pleased to see SSSG back to within full year targets post the roll out of new products, marketing initiatives, and an incremental price increase,” said PIZZA President Vicente Gregorio.

He added that, “though the seasonal slowdown brought about by rains has already begun, we are now in preparations for the forthcoming ‘-ber’ months – the start of the holiday sales uptick in the Philippines. We look forward to launching a fresh round of campaigns meant to take advantage of this positive boost in consumer sentiment.”