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Max's Q1 net income falls 30 pct on raw material, manpower costs

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<blockquote class="instagram-media" data-instgrm-permalink="https://www.instagram.com/p/BYvGaMdhzVm/" data-instgrm-version="8" style="background:#FFF;border:0;border-radius:3px;box-shadow:0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15);margin:1px;max-width:658px;padding:0;width:calc(100% - 2px)"><div style="padding:8px"><div style="background:#F8F8F8;line-height:0;margin-top:40px;padding:50.0% 0;text-align:center;width:100%"><div style="background:url(data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAACwAAAAsCAMAAAApWqozAAAABGdBTUEAALGPC/xhBQAAAAFzUkdCAK7OHOkAAAAMUExURczMzPf399fX1+bm5mzY9AMAAADiSURBVDjLvZXbEsMgCES5/P8/t9FuRVCRmU73JWlzosgSIIZURCjo/ad+EQJJB4Hv8BFt+IDpQoCx1wjOSBFhh2XssxEIYn3ulI/6MNReE07UIWJEv8UEOWDS88LY97kqyTliJKKtuYBbruAyVh5wOHiXmpi5we58Ek028czwyuQdLKPG1Bkb4NnM+VeAnfHqn1k4+GPT6uGQcvu2h2OVuIf/gWUFyy8OWEpdyZSa3aVCqpVoVvzZZ2VTnn2wU8qzVjDDetO90GSy9mVLqtgYSy231MxrY6I2gGqjrTY0L8fxCxfCBbhWrsYYAAAAAElFTkSuQmCC);display:block;height:44px;margin:0 auto -44px;position:relative;top:-22px;width:44px"> </div></div><p style="color:#c9c8cd;font-family:Arial,sans-serif;font-size:14px;line-height:17px;margin-bottom:0;margin-top:8px;overflow:hidden;padding:8px 0 7px;text-align:center;text-overflow:ellipsis;white-space:nowrap"><a href="https://www.instagram.com/p/BYvGaMdhzVm/" style="color:#c9c8cd;font-family:Arial,sans-serif;font-size:14px;font-style:normal;font-weight:normal;line-height:17px;text-decoration:none" target="_blank">A post shared by Max&#x27;s Restaurant (@maxschicken)</a> on <time dateTime="2017-09-07T10:10:01+00:00" style="font-family:Arial,sans-serif;font-size:14px;line-height:17px">Sep 7, 2017 at 3:10am PDT</time></p></div></blockquote><script async="" defer="" src="https://www.instagram.com/embed.js" type="text/javascript"></script><p>MANILA - Max&#x27;s Group said Thursday net income in the first 3 months of the year fell 30 percent due to higher prices of raw materials and a larger manpower component due to new labor policies.</p><p>The country&#x27;s largest casual dining group posted net income of P123.7 million in the first quarter, down from P176 million during the same period in 2017.</p><p>System-wide sales during the same period rose 13 percent from the previous year to P4.4 billion. Total revenues rose 11 percent to P3.2 billion, said the company, which operates Max&#x27;s Fried Chicken, Yellow Cab and Pancake House.</p><p>Consumer prices had risen steadily since higher taxes on fuel and sugar-sweetened drinks took effect last Jan. 1. In April, inflation accelerated to 4.5 percent, overshooting the top end of the government&#x27;s 2 to 4 percent goal for the year.</p><p>A crackdown on labor-only contracting is also underway, with President Rodrigo Duterte warning businessmen involved in illegal contracting that their days are numbered.</p><ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/business/05/04/18/inflation-picks-up-to-45-percent-in-april">Inflation picks up to 4.5 percent in April</a></li></ul><ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/news/05/01/18/your-days-are-numbered-duterte-signs-eo-to-stop-endo">&#x27;Your days are numbered&#x27;: Duterte signs EO to stop &#x27;endo&#x27;</a></li></ul><p>&quot;On the cost side, MGI was weighed down by escalating raw material prices and a larger manpower component as it realized the impact of its move towards professionalization which began in 2017,&quot; Max&#x27;s said.</p><p>&quot;This initiative was undertaken to reinforce strategic capabilities at the management level to ensure sustainable growth. The Company likewise took into account recently enacted labor policies particularly on third-party service engagements,&quot; it said.</p><p>Max&#x27;s Fried Chicken and Yellow Cab recently offered meals for solo diners to tap into a growing market. The group attributed the 13-percent spike in same-store sales last year, in part, to the singles segment.</p><ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/business/05/09/18/table-for-one-restaurants-cash-in-on-single-diners">Table for one? Restaurants cash in on single diners</a></li></ul><p>The company said it was also looking at increasing the number of franchised outlets, as expands here and abroad.</p><p>&quot;This shift will leverage on Max’s Group’s brand equity, operational expertise, and scale to propel store network expansion and boost fee-based collections, which generally equate to better profit translation,&quot; it said.</p>

<p>Max's Group said Thursday net income in the first 3 months of the year fell 30 percent due to higher prices of raw materials and a larger manpower component due to new labor policies.</p>

Max's Group said Thursday net income in the first 3 months of the year fell 30 percent due to higher prices of raw materials and a larger manpower component due to new labor policies.