Restaurant chain Max’s Group Inc. and a wholly-owned unit have signed a P2-billion term loan agreement with Development Bank of the Philippines.
Max’s said in a disclosure to the stock exchange it signed a P1-billion, five-year term loan agreement. It plans to use proceeds of the loan to refinance short-term loans to mitigate financing costs and fund general corporate requirements.
Wholly-owned subsidiary No Bia Inc. also signed a P1 billion, 10-year loan agreement with DBP. It plans to use the loan’s net proceeds to fund the construction and commissioning of a commissary and distribution center in Carmona, Cavite that will serve all Max’s business units.
No Bia’s loan is secured by a suretyship extended by Max’s.
Max’s has a store network of 730 stores as of end of September, with 64 branches scattered across North America, the Middle East and Asia.
Max’s net profit rose 8.5 percent to P128 million in the third quarter of 2019 from P118 million recorded year-on-year.
Systemwide sales, a measure of all sales to consumers, increased 7.7 percent to P4.82 billion from P3.68 billion. Revenue during the quarter amounted to P3.39 billion, up 5.3 percent from P3.22 billion on year.
“Our positive results are attributed to the success of our current company-wide strategies, namely: growing our franchise business, investing in supply chain modernization, and strengthening brand relevance. As industry conditions improve, we are resolute in our commitment to maintain market leadership and increase shareholder value,” said Max’s president and chief executive Robert Trota.
Max’s said it had been teaming up with food aggregators to supplement in-house delivery operations. Delivery sales grew 15.8 percent to P1.32 billion in the first nine months of 2019 from P1.14 billion a year ago.
“We hope to advance our overall performance during the holiday season and to end the year strongly. We have augmented the capacity of our commissary operations and continue to future-proof our business for sustained efficiency and long-term profitability,” said Max’s chief operating officer Ariel Fermin.