Shakey’s profit grows 10% to P843M

Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Wed, 03 Apr 2019 16:15:45 +0000

SHAKEY’S Pizza Asia Ventures Inc. saw its net income increase to P843 million in 2018 on the back of double-digit sales growth.

The local unit of the global pizza restaurant chain told the Philippine Stock Exchange on Wednesday that the amount was a 10-percent surge from P762 million a year earlier.

Revenues stood at P7.58 billion last year, an 8-percent increase from P7 billion in 2017.

Systemwide sales jumped by 12.8 percent to P9.36 billion in 2018 — maintaining a 15-year track of double-digit growth — from P8.3 billion the year before.

Earnings before interest, taxes, depreciation and amortization (ebitda) climbed by 6 percent to P1.50 billion, following a 30-basis point drop in ebitda margins.

“The sustainability of our expansion is a commendable feat by all measures,” Shakey’s President and Chief Executive Officer Vicente Gregorio said in a disclosure. “[However, it] was especially challenging, given the headwinds in consumer spending and the continued entry of new competitors in the dining-out space.”

“Thankfully, we managed to weather these due to a loyal brand following, various value-for-money promotions, new product launches, and the reliable service execution that Shakey’s has always been known for,” he added.

According to him, Shakey’s experienced improvements in the last quarter of 2018 due to the reduced costs of raw materials coupled with the pick-up in consumer spending in December, despite recording contracting margins.

Shakey’s finished 2018 with 228 branches in the Philippines alone, and plans to add 20 more this year to bring its total branch network to 248.

The firm also has three branches in the Middle East and plans to expand in other countries.

“We are excited about 2019 amid today’s dynamic restaurant landscape. In this environment, we will intensify further our efforts to improve the effectiveness and efficiency of our operations, focusing primarily on superior execution this year,” Gregorio said.

“Notwithstanding short-term challenges, we remain confident in the long-term growth of the casual dining space. We intend to continue taking advantage of this [through] the ongoing expansion of Shakey’s — and soon, the expansion of Peri, as well,” he added.

Shakey’s announced on Tuesday that it planned to acquire the Peri-Peri Charcoal Chicken restaurant chain as part of efforts to diversify outside pizza parlor business.

The amount involved was not revealed due to nondisclosure agreements, but Shakey’s representative told The Manila Times that the price was not substantial relative to the listed firm’s market capitalization.

The acquisition will be funded by a combination of internally generated cash and debt.

Shakey’s shares rose by 56 centavos or 4.61 percent to close at P12.70 each on Wednesday.

The post Shakey’s profit grows 10% to P843M appeared first on The Manila Times Online.

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