Shakey’s post thin net income growth amid cost pressures
Shakey’s Pizza Asia Ventures, the Philippines’ leading chained full-service restaurant, saw its income growing only by 7 percent during the first half of the year as cost pressure persists.
In terms of profitability, the company booked a net income of P396 million during first six months of 2018, relative to the P371 million generated the year before.
It also saw first half consolidated gross profit rise at a tempered rate of 4 percent to P1.1 billion, while earnings before interest, taxes, depreciation and amortization (EBITDA) grew at a faster clip of 7 percent to P725 million.
Meanwhile, the company saw its system-wide sales growth rise to plus 13 percent during the first six months of the year, an increase from the 10 percent seen in the first quarter.
System-wide sales, a measure of total sales for both company-owned and franchised stores, stood at P4.6 billion as of end June 2018. In the second quarter alone, it rose to P2.4 billion, a growth of 16 percent versus the same period last year.
This was on the back of an acceleration in same-store sales growth (SSSG), with the company posting a 9 percent SSSG during the second quarter relative to the 2 percent in the quarter before.
“We are pleased to see SSSG back to within full year targets post the roll out of new products, marketing initiatives, and an incremental price increase,” said Vicente Gregorio, President and CEO of Shakey’s.
“Though the seasonal slowdown brought about by rains has already begun, we are now in preparations for the forthcoming ‘-ber’ months – the start of the holiday sales uptick in the Philippines. We look forward to launching a fresh round of campaigns meant to take advantage of this positive boost in consumer sentiment,” he added.
For the six months ending June 2018, the company grew total revenues by 9 percent year-on-year to P3.7 billion. In the second quarter alone, revenues were up 12 percent to Php1.9 billion.