MANILA - Shakey's booked a loss of P247 million in its net income last year as the COVID-19 pandemic shuttered restaurants and cut demand for pizza.
Shakey’s Pizza Asia Ventures, the operator of one of the country’s largest pizza restaurant chains, told the stock market that the company registered a net income of P215 million in the fourth quarter, but this was still not enough to compensate for the losses in the previous quarters.
“For full year 2020, the Company ended with total sales of P6.6 billion – equivalent to 64 percent of 2019 sales,” Shakey’s said.
It added that on a same-store sales basis, excluding the impact of closed stores, sales were down 30 percent year-on-year.
“For most of last year, the Philippines was under different phases of lockdowns which, at its peak, forced the temporary closure of 91 percent of the Company’s store network at the end of March,” Shaky’s said.
Despite this, the company said it remains optimistic for a rebound this year.
“We are pleased by the improvements we saw towards year-end which gave us the confidence to further invest in future growth, readying ourselves to better compete in the ‘new normal’ whilst creating jobs amidst the Philippines’ tough economic environment. Moving into 2021, the ability to stay nimble and adapt to the ever-changing environment will be of utmost importance,” said Vicente Gregorio, company president and CEO.
“We are hopeful that dine-in continues to recover this year, but are nonetheless managing the fact that guests will likely continue to need convenient and flexible out-of-store options,” Gregorio added.
Shakey’s said it aims to restart a store network expansion strategy that was put on hold last year due to the COVID-19 pandemic.
“The stores will however have smaller footprints and reduced investment requirements relative to traditional brick-and-mortar stores. This ensures payback periods are kept short and return on capital remains high,” the company said.
The company, which also operates the Peri-Peri Charcoal Chicken, and R&B Milk Tea brands, said it is also looking to build locations that have all these brands in one location “to maximize the existing asset base.”
Shaky’s will also roll out “ghost kitchens” or kitchen extensions to further strengthen its delivery business.
The Philippines posted its worst postwar economic decline last year as the country imposed what some said was the world's longest and strictest lockdowns to try to check the spread of COVID-19.
Economic managers earlier said they expect the economy to get out of recession in the second quarter as the quarantine restrictions are eased.
But this was before the recent spikes in infections, which again led the government to impose the strictest lockdown level over the capital and adjacent provinces, which produce more than a third of the country's gross domestic product.