MAX’S GROUP REPORTS P 337M IN Q1 PROFIT

casual dining chain operator Max’s Group Inc. (MGI) returned to profitability in the first quarter as dine-in operations picked up pace prior to the reimposition of strict lockdown protocols in late March.

MGI attained a net income of P337 million in the first three months, a turnaround from the net loss of P169 million in the same period last year, as belt-tightening measures made up for slower revenues as the prolonged pandemic continued to curb consumer confidence.

System-wide sales dropped by percent year-on-year to P2.84 billion in the first three months, leading to a 32 percent decline in revenues to P1.84 billion.

The dine-in segment had been recovering in the first quarter as many parts of the country saw relaxation of quarantine restrictions.

Delivery channel and takeouts were still stable, contributing a major portion of total revenues.

“We are gratified that our strategic shifts to focus on our core portfolio of iconic brands, rapidly pivot towards a diversified go-to-market strategy, optimize both our store network and head office structure, transform our total cost model, enhance our product margins and embrace new sources of wealth via B2B (business to business) and channel innovations, have paid off in our commercial results,” said MGI president and chief executive officer Robert Ramon Trota.

“Our powerhouse brands of Max’s Restaurant, Yellow Cab Pizza Co., Krispy Kreme and Pancake House have successfully protected market demand through mindful innovation, menu management, strategic promotions, and channel development, thereby keeping us relevant, vibrant and alive in today’s challenged consumer environment,” he said.