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Max’s Group suffers losses due to pandemic

Max’s Group, Inc., the country’s largest casual dining restaurant group, reported a net loss of P981.6 million in the first nine months of 2020 from a net income fo P493 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said it incurred a net loss of P378.8 million in the third quarter of 2020 from earnings of P128.08 million in the comparative period of 2019.

For the first nine months of 2020, system wide sales amounted to P7.8 billion, a 46 percent decline versus the P14.6 billion reported in the comparable period in 2019 with a same store sales decline of 35 percent.

Revenues amounted to P5.2 billion, a 50 percent decrease from the P10.4 billion reported this time last year, primarily due to the ongoing effects of the COVID-19 pandemic. 

“In spite of the existing challenges from the current global pandemic, we are seeing an upward trend in topline sales brought about by the steady normalization of dine-in patronage and the effectivity of our shift to new product assortments and channels,” said MGI President Robert F. Trota.

He noted that, “In the third quarter, we accelerated B2B selling as well as Ready-to-Cook meal offerings across our takeaway and delivery networks. We anticipate a more aggressive roll-out for these in the latter part of the year.”

Trota added that, “As delivery takes on a more prominent role, we have also ensured that the applicable structures are in place to readily cater to consumer needs during the upcoming peak season.” 

Local sales steadily recovered for the third quarter. The average local SWS for the third quarter of 2020 increased by 38 percent versus that of second quarter of this year. 

In comparison to the second quarter of 2020, systemwide sales increased by 40 percent to P2.24 billion from P1.60 billion in the previous quarter.

Revenues versus the second quarter of the year likewise improved by approximately 30 percent to P1.38 billion from P1.06 billion. 

On a year-on-year basis, however, SWS for the third quarter decreased by 54 percent, with a same store sales decline of 49 percent. Revenues for the third quarter of 2020 were also down 59 percent compared to the third quarter in 2019. 

International stores, which comprise 8 percent of the Company’s total store network, showed more resilience during this period.

For the third quarter and nine months ended 30 September 2020, SWS for international locations declined by only 29 percent versus the same periods last year. In comparison to the second quarter of the year, international SWS rose by 46 percent. 

“As we move into the final weeks of the year, we continue to see the benefits of our recalibrated and resized operations from the last quarters,” said MGI Chief Operating Officer Ariel P. Fermin. He added that, “We have intensified product development work to continue offering our customers craveable food that our brands are known for. Our sights are locked in on scaling up on the green shoots we have identified, which include on-the-go services such as Curbside Pick-Up, Park & DineTM and Drive-Thru formats as well as multi-brand cloud kitchens.”


Source: Manila Bulletin (https://mb.com.ph/2020/11/15/maxs-group-suffers-losses-due-to-pandemic/?utm_source=rss&utm_medium=rss&utm_campaign=maxs-group-suffers-losses-due-to-pandemic)

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