Max's Group Reports P169 Million Net Income Loss For First Quarter
Max’s Group Inc., (MGI) has taken a huge hit because of the coronavirus pandemic. Reporting its first quarter 2020 figures, the country’s largest casual dining restaurant group posted consolidated revenues of P2.72 billion for the three months of 2020, down 18.8 percent from last year’s P3.35 billion.
The company ended the quarter with a net loss of P169.28 million compared to a net income of P138.57 for the same period last year.
MGI, which operates Max’s Restaurant, Pancake House, Krispy Kreme, and Yellow Cab Pizza, among other food and beverage concepts, said systemwide sales actually grew for January and February (8.2 percent and 9.1 percent respectively), just before the government announced the Luzon-wide enhanced community quarantine (ECQ) in mid-March.
The company was forced to stop operations in mall branches and run standalone and in-line locations in a limited capacity (delivery and take-out only). Additionally, the company temporarily paused all operations from March 26 to April 4 “in order to reinforce containment, sanitation and safety procedures for commissaries, stores and offices.”
MGI has already announced that it has reopened 573 stores, or about 76 percent of its total store network. It is also temporarily putting a stop to new store openings for the rest of the year “in line with scaling down overhead costs and controlling working capital spend.”
“With the safety of all our stakeholders as a top priority, we have ensured that security and health protocols remain bolstered at every aspect of our business,” said Robert F. Trota, President and Chief Executive Officer of MGI stated. “The cumulative impact of temporary store closures, dine-in restrictions and various fixed costs have resulted in a swift reversal from last year’s performance. We anticipate that this trend will continue through the second quarter as well. Despite our conservative outlook, we are gradually making progress as we mindfully re-open more locations across our network.”
“Our goal is to successfully execute strategic shifts to thrive within the ‘New Normal,’” said Group Chief Operating Officer Ariel P. Fermin. “We have cut the tail of margin-dilutive products, thus streamlining operations in stores and commissaries. We have also accelerated our participation in online and curbside service models to address changed consumer behavior brought about by this pandemic. We have expanded our business into lateral categories through the offering of signature Ready-to-Cook food items direct to consumers’ homes and communities, and agilely repurposed our team members into a highly-skilled cloud-based sales force to drive demand through non-traditional channels.”
As of April 30, 2020, the Company’s store network totaled 756 locations, with 698 Philippine sites and 58 situated across various locations in North America, the Middle East and Asia.
Its other food and beverage brands include Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Sizzlin’ Steak, Maple, Kabisera, Le Coeur De France, and Singkit.