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Max's Group, Inc.
MAXS
Report on the Results of the Operations of Max's Group, Inc. for the First Quarter of 2022.
Max's Group, Inc. managed to end the 1Q 2022 in a net income position despite the challenges faced in January caused
by the lockdown.
19 May 2022
1 DateofReport(Dateofearliesteventreported)
MAX’S GROUP, INC. (Doing business under the name and styles of Max’s
Restaurant, Pancake House, Maple, Dencio’s, Singkit, Yellow Cab, Teriyaki Boy,
Sizzlin’ Steak, Max’s Corner Bakery, Max’s Group Kitchen, Max’s All About Chicken,
and All About Chicken)
4 Exactname ofregistrantasspecifiedinitscharter
PHILIPPINES
5 Province,countryorotherjurisdictionofincorporation 6 (SECUseOnly)
IndustryClassificationCode
73/F KDC Plaza, 2212 Chino Roces Avenue, Makati City, Metro Manila 1230
Addressofprincipaloffice PostalCode
8(632)84242800 to 09
Registrant’stelephonenumber,includingareacode
9
Formernameorformeraddress,ifchangedsincethelastreport
10 SecuritiesregisteredpursuanttoSections8and12oftheSRC
CommonStock 1,037,292,224
MGI (“The Group”) managed to end the 1Q 2022 in a net income position despite the
challenges faced in January caused by the lockdown. The improved results despite the
tempered sales is driven by the significantly more efficient business model of the
group which has sustained it during the pandemic and will see significant upsides once
the market fully opens up.
System wide sales (SWS or “sales”) comprises sales generated by both company-
owned and franchised stores amounted to P3.55 billion in the first quarter of 2022, a
25% growth from same period last year despite strict lockdown measures in January
due to omicron surge. Relaxation of dine-in restrictions starting February caused
significant boost in sales of dine-in brands Max’s and Pancake House posting double
digit growth month-on-month.
Sales and revenues are steadily recovering which are at 77% and 65% versus 2019
respectively despite having lesser stores and strict lockdown measures in January.
The international business reported a solid 32% growth in SWS in 1Q 2022 vs the
same period last year. Said business segment has been recovering faster versus the
local market, favorably affected by faster vaccination rollout causing less stringent
lockdown measures.
Consolidated revenues of the Group for 1Q 2022 amounted to P2.17 billion an 18%
growth from P1.84 billion the same period last year driven by rapid recovery of dine-in
brands in February and March and steady contribution of traditionally off-premise
driven brands Yellow Cab and Krispy Kreme.
Gross profit for 1Q 2022 amounted to P682 million a 41% increase from P482 million
in the same period last year. Gross profit margin significantly increased to 31% from
only 26% the year prior. Margin improvements despite headwinds encountered from
commodity price increases as well as tempered topline growth resulting from lockdown
restrictions is the result of the pivot in business model of the Group and continued
optimization of costs across the whole organization.
EBITDA for 1Q 2022 amounted to P359 million, a significant improvement from P282
million for the same period last year, excluding previous one-off gains. EBITDA is
growing at a faster pace than revenue growth as the improved and more efficient
business model is yielding better flowthrough.
EBITDA margins further improved to 17% from 15% the same period last year without
the one-off gains. This improvement in the business model will further be realized as
sales continue to recover as market continues to open up.
MGI has also continued to expand our reach and market not only though brick and
mortar stores but across all available channels such as cloud kitchens, retail outlets,
and ecommerce platforms as it ventured into other adjacent industries. The Group has
strategically created over the course of the pandemic, new revenue streams in the
business-to-consumer (B2C), business-to-business (B2B), and manufacturing space.
The newly built Carmona commissary enabled the Group to expand capacity and
capability to grow beyond the traditional brick-and-mortar footprint and bring its
beloved brands closer to market. From having a literal zero presence at the start of
last year, current and new menu items from MGI’s beloved brands are now present
under the newly launched Max’s Group Kitchen imprint in over 300 retail partner
stores; including both the physical and digital channels of notable players such as SM
Markets, Robinsons Group, WalterMart, Shell Select, AllDay Supermarket, Puregold,
Gaisano Market, Lazada, Shopee, MetroMart, and GrabMart.
As of 31 March 2022, the Company’s store network totaled 14 territories, with 603
Philippine sites and 62 stores situated across various locations in North America, the
Middle East, and Asia.
SIGNATURES
MAX’S GROUP, INC. (Doing business under the name and styles of Max’s
Restaurant, Pancake House, Maple, Dencio’s, Singkit, Yellow Cab, Teriyaki Boy,
Sizzlin’ Steak, Max’s Corner Bakery, Max’s Group Kitchen, Max’s All About Chicken,
and All About Chicken)
Registrant
CARMEN-ROSE A. BASALLO
Compliance Officer, General Counsel and
Assistant Corporate Secretary