Casual dining restaurant group Max’s Group, Inc. incurred losses of P377.48 million in the third quarter, a reversal of its profits a year ago, as operations were hit by lockdown measures during the ongoing pandemic.
In the same quarter last year, Max’s Group recorded a net income of P128.08 billion for the parent firm’s equity holders.
In a stock exchange disclosure on Friday, the company said revenues during the quarter fell 59% to P1.38 billion, while system-wide sales, or sales from company-owned and franchised stores, declined 54% to P2.24 billion.
For the nine-month period, the company posted a net loss attributable to parent equity holders of P977.18 million, reversing net earnings of P493.38 million a year ago.
System-wide sales of Max’s Group from January to September also dropped 46% to P7.8 billion while revenues fell 50% to P5.17 billion.
The government’s decision to revert Metro Manila to stricter quarantine measures in August suspended dine-in operations and affected its sales momentum, the company said.
“Despite this, local sales steadily recovered for the third quarter. The average local system-wide sales for the third quarter of 2020 increased by 38% versus that of the second quarter of this year,” the disclosure said.
Meanwhile, Max’s Group said its international stores, which account for 8% of its total store network, performed better.
“For the third quarter and nine months that ended on September 30, system-wide sales for international locations declined by only 29% versus the same periods last year. In comparison to the second quarter of the year, international system-wide sales rose by 46%,” it said.
Max’s Group Chief Executive Officer and President Robert F. Trota said that despite the challenges posed by the pandemic, he projects an increase in topline sales resulting from the steady return of dine-in patronage and the company’s shift to new product channels.
“As delivery takes on a more prominent role, we have also ensured that the applicable structures are in place to readily cater to consumer needs during the upcoming peak season,” Mr. Trota was quoted as saying.
Meanwhile, Max’s Group Chief Operating Officer Ariel P. Fermin said that as the company heads into the end of the year, he estimates that the benefits of its recalibrated and resized operations will be felt.
“We have intensified product development work to continue offering our customers craveable food that our brands are known for,” Mr. Fermin was quoted as saying.
“We remain secure in the strategic decisions we have made and in the reach of our unmatched portfolio of brands,” he added.
As of end-September, the company said it had a total of 716 stores, with 80% of these being operational. Some 657 sites are in the Philippines while 59 are across North America, the Middle East, and Asia.
On Friday, shares in Max’s Group at the stock exchange fell 0.59% or P0.04 to end at P6.75 per piece. — Revin Mikhael D. Ochave