Max's Group net profit up 12% to US$6.5m in 1H17
Thanks to the 41 new stores and 6 overseas outlets opened during the period.
According to Max’s Group' financial results for the first half of 2017, systemwide sales rose 12% to PHP8.29b (US$164m) from PHP7.43b (US$147m) in the same period last year. The surge was anchored on new store openings and steady same store sales performance.
Meanwhile, revenues from new franchises, royalty and continuing license fees gained 23% to PHP333.65m (US$6.6m) due to additional franchise sign-ups and a larger recurring income stream. As a result, earnings before interest, taxes, depreciation and amortization (EBITDA) stood at PHP710.03m (US$14m) translating to a net income of PHP331.72m (US$6.5m), up 12% versus PHP295.33m (US$5.8m) year-on-year.
“We are happy with the results despite an increasingly challenging environment. Moving into the next quarter, we have lined up exciting product initiatives to cushion cyclicality effects during wet season,” said Robert F. Trota, president and chief executive officer of Max’s Group, Inc.
From January to June, Max’s Group opened 41 new stores including 6 outlets overseas bringing its total network to 650 branches of which 53 are situated abroad.
MGI is focused on operationalising its current pipeline of around 140 stores across various locations in North America, Middle East and Asia. For 2017, the Company has secured two development contracts to establish at least 22 Yellow Cab outlets in Vietnam, Brunei and East Malaysia within five years.
“Whilst efforts are centred on expanding physical presence, we are constantly on the lookout for opportunities to penetrate new geographies,” stated Peter H. King, chief executive officer of Max’s Group International.
It has launched promotional campaigns such as Chicken All-You-Can for Max’s Restaurant and World Pizza Day for Yellow Cab, both of which were reportedly well-received by customers.
“We expect prevailing economic conditions will remain supportive of our business,“ concluded Trota.
