Restaurant chain operator Shakey’s Pizza Asia Ventures Inc. declared a net loss of P290 million in the first half, a reversal of the P389-million net income it reported in the same period last year because of the business disruptions caused by the pandemic.
Shakey’s said first-half revenues declined by 31 percent as the implementation of strict quarantine measures aimed to curb the spread of the virus resulted in temporary closure of most stores.
The pizza chain said most stores that were operational during the quarantine period were subject to shortened hours and limited to delivery and carry-out services only.
It said that by end-June, 267 Shakey’s and Peri stores, representing 95 percent of the company’s total store network, were already operational.
Shakey’s said while dine-in sales suffered a steep decline in sales, this was partially offset by stronger demand for delivery and carry-out which saw record-breaking sales in the last few months.
“In both Shakey’s 45 years in the Philippines and my own multi-decade career in this industry, what we are facing today are perhaps the most challenging times. Nonetheless, there remain a number of bright spots, foremost of which is our core product pizza, which is the quintessential delivery and carry-out product,” Shakey’s president and chief executive Vicente Gregorio said.
“In addition, our multi-sales channel and multi-store format approach, alongside our industry-leading margins, are giving us the much-needed flexibility to weather through this crisis. We are hopeful that the worst is now behind us,” Gregorio said.
Aside from lower sales, the company also incurred one-off charges resulting from various streamlining and efficiency initiatives that are meant to permanently improve cost-structures moving forward.
The effects of these initiatives are expected to kick-in by the second half and benefit the succeeding periods.
“In the short term, our industry-leading margins, access to credit, strong presence in the home and market-leading brand will be the key components of our tool kit. In spite of continuing lockdowns, we are looking to hit cash break-even in the second half and should be on our way to recovery by 2021. At the same time, we will continue to enhance our existing delivery, digital, and carry-out platforms and roll out new and exciting innovations across our various sales channels,” Gregorio said.
