Shakey’s Pizza posts 14% decrease in Q2 profit
LISTED Shakey’s Pizza Asia Ventures, Inc. (SPAVI) recorded a 14% decline in its second-quarter (Q2) net income to P249.03 million from P288.22 million a year ago amid a soft consumer environment.
April-to-June revenue increased by 9% to P3.43 billion from P3.15 billion last year, SPAVI said in a regulatory filing on Wednesday.
For the first half, SPAVI saw a 14% decline in its net income to P421 million from P489 million last year.
System-wide sales rose by 14% to P10.1 billion amid the continuing inflationary environment.
“Amid a soft consumer environment, the group sustained systemwide sales growth momentum. The growth in system-wide sales was driven by new stores opened during the period and sustained growth in same-store sales,” SPAVI said.
Net revenue increased by 8% to P6.52 billion, while operating expenses surged by 36% to P960 million.
“Given the anticipated improvements in input costs and the respective margin gain, investments were made in the form of demand-generating activities to support topline growth. Coupled with expenditures to grow the organization for both domestic and international expansion, operating expenses rose by 36% year-on-year,” SPAVI said.
For the first half, SPAVI opened 210 new stores, bringing its total network to 2,351 stores and outlets.
Approximately 13% of its network is comprised of international units. Same-store sales growth clocked in at 2%, returning to pre-pandemic levels.
Meanwhile, SPAVI is maintaining its target of growing the company’s earnings by mid-teens amid improving input costs.
“With easing input costs and a better profitability outlook in the second half, we have room to invest in growth and expansion. Hence, we remain cautiously optimistic with our mid-teens growth outlook in both the top and bottom lines,” SPAVI President and Chief Executive Officer Vicente L. Gregorio said.
“Ultimately, at the core of our ambition as a guest-centric organization is the desire to wow our guests by giving them great and unforgettable experiences with our brands, whether in good times or in bad, through thick and thin,” he added.
On Wednesday, SPAVI shares rose by 0.1% or one centavo to P9.59 apiece. — Revin Mikhael D. Ochave