Max’s Group Inc. said it tapped a P1-billion five-year term loan from Development Bank of the Philippines that it will use to refinance existing short-term loans.
This will “mitigate financing costs” of the company, it said.
Its unit No Bia Inc. also tapped a similar P1-billion loan from the bank with a term of 10 years that will be used to fund the construction and commissioning of a commissary and distribution center in Carmona, Cavite.
Max’s said the commissary will service all of the group’s business units.
The loan is secured by a suretyship extended by Max’s.
Last week, Max’s reported its profit in the first nine months of the year rose 9.8 percent to P494.77 million, from P450.56 million a year ago. Revenues grew 4.8 percent to P10.43 billion, from P9.95 billion last year.
“Our positive results are attributed to the success of our current company-wide strategies, namely: growing our franchise business, investing in supply chain modernization, and strengthening brand relevance. As industry conditions improve, we are resolute in our commitment to maintain market leadership and increase shareholder value,” said Robert Trota, Max’s president.
The company booked systemwide sales of P14.55 billion, up 5.7 percent from P13.76 billion in 2018. Restaurant sales climbed 3 percent to P8.53 billion, from the P8.28 billion last year.