LISTED restaurant operator Max’s Group, Inc. posted a 53% drop in its attributable net income in the third quarter amid increased expenses.
In a regulatory filing on Wednesday, the company said its attributable net income fell to P68.35 million compared with P145.74 million last year due to higher expenses.
The company’s third-quarter revenues improved 4.3% to P2.91 billion from P2.79 billion last year.
Meanwhile, Max’s Group logged a 26% decline in its nine-month attributable net income to P313.72 million from P426.41 million led by increases in food and packaging costs, cost of labor, rent, and store-related expenses “that were instrumental in reinforcing the customer dining experience.”
The company said its revenues rose 13% to P8.8 billion while systemwide sales improved 10% to P13.8 billion.
“The solid performance is owed to the group’s dedication to provide great food and great service to its growing base of customers. Max’s Restaurant and Pancake House are on track in rebounding from a challenging past three years as they capitalize on the growing market appetite for eating out,” it said.
“Meanwhile, Yellow Cab Pizza Co. and Krispy Kreme continue to be the group’s stalwarts in the off-premise channels, while [Max’s Group] international arm sustains its growing contribution with strong operations in the group’s operations in the rest of Asia, North America, and the Middle East,” it added.
Max’s Group President and Chief Executive Officer Robert F. Trota said that the company is confident that its brands will remain relevant in “today’s consumer.”
“Our reinvigorated efforts to provide customers with fresh experiences through product and retail innovations make us optimistic as the dine-in segment in particular gets a boost with the expected higher consumer spending in anticipation of the holiday season, the declining unemployment rate, and the overall trajectory of household consumption expenditure,” Mr. Trota said.
“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,” he added.
As of the third quarter, Max’s Group store network covers 14 territories, with 591 Philippine branches and 66 stores across North America, the Middle East, and Asia.
Its shares at the local bourse fell six centavos or 1.55% to P3.80 apiece. — Revin Mikhael D. Ochave