Shakey’s earnings jump three-fold to P76M in Q1

Shakey’s Pizza Asia Ventures Inc. reported a net income of P76 million in the first quarter of the year, 2.7 times higher than the same period a year before.

Systemwide sales grew by 33 percent to P2.2 billion, buoyed by easing quarantine restrictions beginning February which led to a revival in foot traffic.

Vicente Gregorio, Shakey’s president and CEO, said he is pleased with the company’s first quarter performance.

“Amidst an operating environment that was less than ideal, the company was able to deliver healthy business results, which we can attribute to our long-term approach throughout the pandemic. We remained resolute in investing in our brands, in our stores, and in our people. We strengthened our digital infrastructure. We explored inorganic opportunities, so now we have another ‘Wow’ brand, Potato Corner, contributing to our growth,” Gregorio said.

In terms of profitability, Shakey’s gross profit was at P390 million, 23 percent higher than the previous year. Gross margin for the quarter stood at 24.2 percent, softening by 50 bps versus the comparable period last year due to the general rise in input prices globally.

With a strong top line performance, operating expenses as a percentage of revenues improved year on year.

“Early second quarter results are demonstrating a continuous growth momentum. Our long-awaited Philippine reopening is finally here. We are seeing an influx of guests in our stores. Group size is improving. At the same time, our store network expansion program is in full swing in our pursuit to scale up our brands and reach more guests domestically and even internationally.” he said.

He said barring the emergence of new virus variants or any other major external factors, the company expects systemwide sales to exceed pre-pandemic level by yearend.

“We recognize short- to mid-term headwinds at play, but throughout the course of the pandemic, we have learned to pivot and evolve – all to deliver lasting value to our guests. We will continue on this path and, hopefully, reignite a new double-digit topline and bottomline growth streak in 2022,” Gregorio said.