Shakey's Pizza Asia Ventures, Inc. Reported P1.08 Billion Net Income in 2023, Up 23%; Declared P0.20 Cash Dividend Per Share

One of the leading food service companies in the Philippines, Shakey's Pizza Asia Ventures, Inc. (SPAVI), announced a successful year-end for 2023. Reaching a milestone of P1.08 billion, the group's net income after tax increased by 23% over the prior year. Despite difficult financial challenges, the group's systemwide revenues increased to P18.64 billion, a 32% YoY increase.

Vicente Gregorio, SPAVI President and Chief Executive Officer, said, “We are grateful for the double-digit growth of our portfolio in 2023. However, persistent inflationary pressures continue to dampen consumer sentiment, leading to a softer growth performance during the second half of the year. Nonetheless, we are pleased to deliver record-high 4Q sales, supported by a festive comeback in December.”
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Healthy foot traffic at SPAVI persisted in 2023, supporting the dine-in sector and raising SSSG to 13%. PIZZA's dine-in business grew by 11% in the fourth quarter as customers celebrated the holidays.

P14.13 billion was the total amount of revenues, up 39% from the prior year.

“The investments in our brands, our stores, and our people are all designed to deliver the best value to our guests, which is especially relevant in this kind of environment. These allowed our brands to maintain market leadership in the full-service restaurant chain and kiosk chain categories,” Gregorio shared.

Shakey's, the top brand in full-service restaurant chains in the Philippines; Potato Corner, the best brand in kiosks with its famous flavored fries; Peri-Peri Charcoal Chicken & Sauce Bar, the Group's entry into the full-service roasted chicken market; and R&B Milk Tea and Project Pie are among the incubator brands in SPAVI's portfolio.​

The group had 2,141 locations worldwide as of the end of 2023, comprising 268 Shakey's and 77 Peri-Peri locations. Potato Corner opened 300 Philippine locations in 2023, the most in its 31-year existence, to close out the year with 1,784 stores and outlets. In 2023, PIZZA added 369 new locations and stores across its network overall. The company constructed a flagship facility along Mindanao Avenue that housed all of its brands, in addition to 59 overseas locations for Shakey's and Potato Corner.

Gregorio added, “We remain committed to strengthening our partnership with our franchisees, who are aligned with our growth and entrepreneurial mindset as a SPAVI Group. Together with our franchise partners and supply chain ecosystem, we support over 18,000 jobs globally and across 15 territories outside the Philippines. We aim to foster a win-win-win environment, generating more opportunities to further economic development in the Philippines, equipping entrepreneurs in the country, and creating great experiences for our guests.”

In terms of earnings, SPAVI's net income for 2023 totaled P1.08 billion.

Although gross profit rose by 21% annually, gross margins weakened due to rising input costs and an inflationary environment. Additionally, SPAVI made large brand investments to strengthen its infrastructure and assist its expansion both domestically and internationally. Nevertheless, net income increased by 23% YoY due to its disproportionate topline, which improved OPEX recovery. Net margins, which only dropped by 100 basis points YoY, were less affected as a result.

The Board of Directors of SPAVI approved the declaration of dividends amounting to P0.20 centavos per share, which is an increase from the 10 centavos per share declared in 2023 and before the pandemic, the organization also said.

Gregorio said, “We are grateful for the past two years of robust post-pandemic performance. Given the plans we have in place, we remain committed to share the value created with our shareholders.”

“For 2024, inflationary challenges persist, so we remain vigilant and cautious. On the other hand, we see commodity prices beginning to ease towards the end of 2023. All considered, we are aiming to deliver growth in the mid-teens for both our topline and bottomline. We plan to expand our network footprint by at least 400 stores and outlets. With robust double-digit growth coming from a high base and amidst dynamic macroeconomic backdrop, our built-up multi-brand portfolio primes us for sustainable growth in the years to come,” concluded Gregorio.

Shakey’s Pizza has been creating over 40 years of great times and great memories. It is one of the leading Fast Casual Restaurants in the Philippines, focused on family casual dining. It maintains market leadership in both the chained pizza full-service and chained full-service restaurant categories.

Peri-Peri Charcoal Chicken and Sauce Bar is an emerging fast-casual and full-service restaurant brand in the Philippines. Its mainstay is charcoal-grilled chicken, marinated for 24 hours, served with an assortment of unique sauces to choose from. Since its acquisition in 2019, PIZZA has already doubled the store footprint of Peri-Peri. 

PIZZA owns the master franchise of R&B Milk Tea in the Philippines. R&B Milk tea is one of the leading milk tea players in Singapore. It is available in Shakey’s stores and now has two independent stores, one of which is the first drive-through milk tea store in the country.

In 2021, PIZZA relaunched Project Pie, a modern and upscale pizza concept and an artisan pizza chain known for its build-your-own pizzas.

In 2022, PIZZA acquired Potato Corner, one of the leading food kiosk brands in the Philippines renowned for its flavored fries. Potato Corner has over 1,000 stores in the Philippines and a wide store network internationally.​