PIZZA chain operator Shakey’s Pizza Asia Ventures Inc. posted a profit of P862 million last year, up 2 percent from P845.1 million the prior year.
The company said the application of a new accounting rule for the 2019 results capped its bottomline growth. It could have posted 10 percent growth sans the Philippine Financial Reporting Standard (PFRS) 16 application.
“PFRS 16 is an accounting standard on leases which took effect at the start of 2019, accelerating the recognition of non-cash expenses,” Shakey’s said.
The company reported its systemwide sales rose 11 percent to P10.4 billion, with same-store sales up 1 percent.
Shakey’s said it closed the period with 276 stores, comprised of 246 Shakey’s and 30 Peri-Peri Charcoal Chicken (Peri) outlets.
“The year 2019 saw 18 net new Shakey’s stores, 17 of which were opened outside Metro Manila, and 7 new Peri stores counting from PIZZA’s acquisition mid-year,” it said.
Amidst the ongoing threat from the coronavirus disease and the enhanced community quarantine imposed throughout Luzon, Shakey’s said it has maintained partial delivery and carry-out operations despite closing majority of its stores.
“Select Shakey’s and Peri outlets remain operational for delivery and carry-out services utilizing a limited menu, shortened hours, and a reduced and voluntary workforce. It is looking to gradually re-open more select outlets over the next few weeks, whilst strictly implementing enhanced safety protocols that are aligned with World Health Organization (WHO) recommendations,” the company said.
“This is an extraordinary time, but we are able to manage through by prioritizing a strong cash and liquidity position, and slowly increasing delivery and carry-out accessibility,” said Vicente Gregorio, Shakey’s president.
For its employees, Shakey’s said it has implemented a paid “COVID leave,” facilitated the early release of the 13th month pay and distributed various food packs.
“Amidst the short-term disruptions, we are also readying ourselves to bounce back in what we believe will be a new ‘post COVID’ world where a strong brand and delivery presence is key,” Gregorio said.
“Though the full effects of COVID remain unknown, we are firmly in this business for the long run benefit of all our stakeholders, including our employees and our guests, and we believe that the structural growth story of dining out in the Philippines is still intact,” he added.
