Restaurant chain operator Max’s Group Inc. said Tuesday it posted a net income of P451 million in 2021, a sharp turnaround from the P1.68-billion net loss it incurred in 2020.
Max’s Group, in a financial report filed with the Philippine Stock Exchange, attributed the reversal to the cost savings realized from rightsizing and more efficient operations.
“With dine-in channels expected to return in 2022, significant margin upsides are expected in the coming year when the market comes back,” the company said.
System-wide sales, composed of sales from both company-owned and franchised stores, climbed 15 percent in 2021 despite strict dine-in and mobility restrictions implemented for the most part of the year.
Revenues, which include restaurant sales, commissary sales and franchising and other revenue, increased 7 percent to P7.64 billion from P7.14 billion in 2020.
Restaurant sales, which accounted for 78 percent of consolidated sales, rose 4 percent to P6 billion while commissary sales and franchising and other revenue grew 29 percent and 12 percent, respectively.
It said the increase in revenues was driven by overall market conditions as well as continued growth in off-premise channels of all brands. Shifts in channel segments were seen as consumers adjusted to government-mandated protocols such as limited dine-in due to health and safety precautions.
Max’s Group said customer preference shifted to delivery instead of dine-in while takeout remained stable during the pandemic.
The company said core brands continued to drive the demand and increase in system-wide sales while the other brands were strategically placed in cloud kitchens which contributed to higher sales without the significant capital expenditures in opening a brick-and-mortar store.
International business reported a 33-percent growth in sales from the prior year and recovered faster compared to the local market as less stringent lockdown measures were in place overseas.
“International business is already near pre-pandemic sales level and future expansion plans are in place for the coming year,” the company said.
Max’s Group ended 2021 with 660 stores, after opening 23 new stores including four overseas stores.