Pizza chain Shakey’s Pizza Ventures Inc. said net income rose 6.3 percent in the first quarter of the year to P184 million from P173 million year-on-year, after cost pressures tempered the double-digit growth in sales.
SPAVI said in a disclosure to the stock exchange systemwide sales, a measure of total sales for both company-owned and franchised stores, climbed 10 percent to P2.2 billion on the back of a 2-percent growth in same store sales and the store network expansion strategy.
“We are pleased to have achieved a double-digit sales growth for the first quarter of 2018 despite what is typically a seasonally weak quarter and a high base last year,” SPAVI president and chief executive Vicente Gregorio said.
“We continue to face a competitive environment, but this has been mitigated by the success of our own marketing initiatives and the efforts we have made to improve the overall Shakey’s brand experience. We look forward to positive momentum from here and expect improvements as we move to complete the year,” he added.
SPAVI opened four new outlets from January to March to end the period with a nationwide store count of 212.
Gregorio said the company would continue to implement efficiency measures to cushion the impact of higher costs and inflationary pressures.
“Moreover, with the expected pick-up in sales moving forward, we will likewise see an uptick in our margins as we maximize operating leverage and spread out fixed costs,” said Gregorio.
SPAVI plans to open another 16 new branches to end 2018 with 228 stores.
“We are further expanding our reach as we bring the Shakey’s experience to more and more locations beyond Metro Manila. The bulk of the 20 new stores we are opening this year are outside the first-tier cities, where urbanization and incomes continue to rise,” Gregorio said.
The company expects an increase in same store sales growth for the rest of 2018, targeting a full year range of between 3 percent to 5 percent.
“Though we did anticipate a relatively slower start to the year, we now expect faster growth in succeeding periods as promotional and pricing strategies have already been put into place,” Gregorio said.
