Higher expenses trim Max’s profit

RESTAURANT operator Max’s Group Inc. (MGI) posted a 23-percent decline in nine-month net income to P331 million from P427 million, said to be due to increased marketing activities and higher store-related costs.

“Max’s Group is confident that our stable of brands will continue to be relevant to today’s consumer,” Robert Trota, company president and chief executive officer, said in a statement.

Despite lower earnings, Trota said they remained optimistic about operations and reaffirmed a commitment to providing customers with new experiences.

Consolidated revenues for January to September improved by 13 percent to P8.8 billion, complemented by a 10-percent growth in systemwide sales to P13.8 billion amid a same-store sales growth of 9.0 percent.

“These results underscore our steady growth rate notwithstanding the effects of challenging market conditions, and our teams are ready to channel this momentum into the Christmas season, priming us for a strong finish to cap the year,” Trota said.

For the first nine months, gross profit amounted to P2.8 billion with a 32.5-percent margin, surpassing the 26.1 percent recorded during the pre-pandemic.

The restaurant operator said the margin improvement was due to strategic measures implemented to ensure more efficient operations.

As of end-September, MGI’s store network spanned 14 territories, with 591 Philippine branches across brands and 66 stores situated in various locations in North America, the Middle East and Asia.

The casual dining restaurant group operates Max’s Restaurant, Pancake House, Yellow Cab Pizza Co. and Krispy Kreme. It also engages global toll manufacturers to supply processing requirements for its international business.

On Wednesday, MGI shares plunged by 6 centavos to close P3.80 apiece.

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