Max’s Group Inc.’s Q1 Income Falls by 87% Despite High Revenues and Margins

Max’s Group Inc., the leading casual dining restaurant operator in the Philippines and the operator of Max’s Restaurant and Pancake House has announced an 87% decrease in income this Q1 of 2022. The company’s previous income this time last year was P335.59 million, a stark difference compared to this year’s P41.5 million.

Despite the company’s drastic income decrease this Q1 of 2022, the company has also reported an 18% rise in revenue from its restaurant, commissary, and franchising sales along with other sources of revenue. Max’s Group has now reached P2.16 billion, from the previous year’s P1.84 billion. The company has also reported its systemwide sales comprising both franchised and company-owned stores have earned P3.55 billion.

Max’s CEO Robert Ramon F. Trota states, “Our results for first quarter, even more markedly so in March, are an indication of strong demand for our brands and patronage of our core of core, which are available both in traditional brick-and-mortar spaces, and expanded to business-to-business and off-premise platforms,”

Max’s Group also comments on their international business reaching a 32% systemwide sales growth for Q1, saying, (The) said business segment has been recovering faster versus the local market, favorably affected by faster vaccination rollout causing less stringent lockdown measures,”

Trota says, “As planned, our dine-in brands Max’s and Pancake House, which have been managed for profitability during the pandemic, realized significant growth towards the back-end of the quarter. We are expecting that as the market continues to open up, the recovery of these brands will be even more vibrant, giving our margins a boost.”

Max’s Group’s main brands Max’s Restaurant, Pancake House, Yellow Cab Pizza Co., and Krispy Kreme are all expected to increase their gains as dine-in operations resume along with pandemic restrictions easing up.

Source: BusinessMirror