Max’s posts 169M loss in Q1

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Max’s Group Inc. reported it closed the first quarter of the year with a loss of P169.28 million, a reversal from the P138.57 million profit posted last year.

Revenues dropped 18.8 percent to P2.72 billion, from P3.35 billion a year ago. The company said systemwide sales, which measure sales for both company-owned and franchised stores, was at P3.99 billion, down 12.9 percent from P4.58 billion in 2019.

“In January 2020, before the outbreak of COVID-19, systemwide sales grew by 8.2 percent, accompanied by a same store sales growth of 1.9 percent. February 2020 exhibited a similar trend with an increase in systemwide sales of 9.1 percent, and a same store sales growth of 2.3 percent,” Max’s said.

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“In mid-March, in line with the government’s enhanced community quarantine guidelines for COVID-19, Max’s was forced to cease operations in malls and operate stand-alone and in-line locations in a limited capacity (i.e., delivery and take-away only),” it added. The company said to reinforce containment, sanitation and safety procedures for commissaries, stores and offices, it temporarily paused all operations from March 26 to April 4.

Robert Trota, Max’s president, said the reversal of performance as a result of the “cumulative impact of temporary store closures, dine-in restrictions and various fixed costs” is expected to spill over into the second quarter of the year.

“Despite our conservative outlook, we are gradually making progress as we mindfully re-open more locations across our network,” he added. At present, Max’s has re-opened 573 stores representing 76 percent of its total store network.

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