MANILA - Max's Group Inc said it maintained profitability in the first quarter despite the omicron surge with a net income of P42 million by expanding its revenue streams beyond brick-and-mortar stores.
It "nearly doubled" last year's P22 million in the same period despite the tightening of restrictions in January to stem a surge in COVID-19 cases, the casual dining restaurant operator told the stock exchange.
Systemwide sales reached P3.55 billion while revenues hit P2.17 billion for the period, it said.
Local sales remain tempered by the January lockdown but its international business has already surpassed the pre-pandemic levels, Max's said.
"Our results for Q1, even more markedly so in March, are an indication of strong demand from our brands and patronage of our core of the core, which are available both in traditional brick-and-mortar spaces and expanded to business-to-business and off-premise platforms," MGI Chief Executive Officer Robert Ramon Trota said.
Max's President Ariel Fermin said the company would continue to expand beyond brick-and-mortar across all available channels as consumer behavior shifts.
It has forayed into cloud kitchen, retail outlets, and e-commerce platforms, as well as manufacturing spaces, Fermin said.
Cloud kitchens have added at least 13 percent of sales to existing stores even with minimal personnel, the company said.
The company operates Max's, Yellow Cab, and Pancake House, among others. It bounced back to profitability in 2021 with a P451 million net income, after booking P2.1 billion losses in 2020.
For 2022, the company said it plans to spend "a good amount" on its capital expenditure. Part of it is allocated to its Carmona Commissary as well as planned store expansions, it added.
As of March 2022, Max's network is comprised of 601 Philippine sites and 62 stores in North America, Middle East, and Asia.