Shakey’s Pizza Asia Ventures Inc. one of the leading restaurant and food service groups in the Philippines, said Friday it is maintaining its mid-teens earnings (13 percent to 19 percent) growth for 2024 even after posting a 14-percent decline in first-half profit.
Shakey’s said in a disclosure to the stock exchange it expects net income to recover in the second half as input costs are expected to improve.
“Amid a challenging environment, we see how our group has been reaping the benefits of a multi-brand portfolio. Furthermore, with easing input costs and a better profitability outlook in the second half, we have room to invest in growth and expansion,” Shakey’s said.
“Hence, we remain cautiously optimistic with our mid-teens growth outlook in both top and bottomline,” it said.
Net income in the first half reached P420 million, down 14 percent from P489 million recorded in the same period last year on soft consumer environment.
First-half systemwide sales rose 14 percent year-on-year to P10.1 billion, driven by new stores that opened during the period and sustained growth in same-store sales.
The group opened 210 new units in the six month-period, boosting its total network to 2,351 stores and outlets as of end June.
About 13 percent of its network is comprised of international units.
Net income settled at P249 million in the second quarter, down 13.5 percent from P288 million a year ago.
System-wide sales in the second quarter amounted to P5.3 billon, up by 14 percent year-on-year.
Shakey’s said it invested in demand generating activities to support topline growth, given the anticipated improvements in input costs and the respective margin gain.
The group’s operating expenses rose 36 percent year-on-year as it spent more to grow the organization for both domestic and international expansion.
Shakey’s portfolio is now comprised of five main brands including Potato Corner, Peri-Peri Charcoal Chicken and Sauce Bar, R&B Milk Tea and Project Pie.
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