MANILA, Philippines — Shakey’s Pizza Asia Ventures Inc., the Philippines’ leading full-service restaurant chain, incurred a net loss of P247 million last year, a reversal of the P865 million income booked in 2019.
Total sales decreased to P6.6 billion, equivalent to 64 percent of 2019 sales. On a same-store sales basis, excluding the impact of closed stores, sales fell 30 percent year-on-year.
The company, however, saw a rebound in the fourth quarter as it reported a net income of P215 million from a loss for the most of 2020.
Earnings before interest, tax, depreciation and amortization (EBITDA) during the quarter reached P400 million, up significantly from P6 million the previous quarter.
Shakey’s president and CEO Vicente Gregorio said 2020 was a one-of-a kind year because of the COVID-19 pandemic.
“Nonetheless, despite our net loss for the year, we’ve managed to pull through with positive cash flows, improved cost structures, and greater ability to address off-premise demand thanks to the gallant efforts of our team and the numerous business innovations we’ve put into place,” Gregorio said.
For most of last year, the Philippines was under different phases of lockdowns which resulted in the closure of 91 percent of the company’s store network at the end of March.
“We are pleased by the improvements we saw toward yearend which gave us the confidence to further invest in future growth, readying ourselves to better compete in the ‘new normal’ whilst creating jobs amidst the Philippines’ tough economic environment,” Gregorio said.
Moving forward, he said the company is hopeful dine-in will continue to recover this year as it resumes its expansion plans.
The company will restart a store network expansion strategy that was put on hold last year due to the COVID-19 pandemic. The stores will, however, have smaller footprints and reduced investment requirements relative to traditional brick-and-mortar stores.
It is also looking to build locations that have the Shakey’s, Peri-Peri Charcoal Chicken, and R&B Milk Tea brands in one location to maximize the existing asset base.
Article and Photo originally posted by Philippine Star last April 6, 2021 12:00am and written by Iris Gonzales.