For the fourth quarter of 2020, the net revenue of P215 million announced by SHAKEY’S PIZZA Asia Ventures Inc. (SPAVI) was also boosting from tax benefits, as part of a year following losses resulting from negative profitability by the firm.

SPAVI President and Chief Executive Officer Vicente L Gregorio said on Monday: “We are delighted to see the changes that were made towards end of this year, which have given us the hope that we can spend further in future growth to succeed more fully in the ‘fresh normal’ and to create employment in the harsh economic climate of the Philippines.

The group announced net revenues of P114 million in the first quarter of 2020. The group swung to losses mid-year, with a second-quarter loss of P167 million and a third-quarter loss of P171,95 million.

In the fourth quarter, SPAVI’s EBITDA (earnings before taxation, taxes, depletion, and amortization), which improved from the pre-quarter P6 million.

The group recorded a 33 percent increase in systemwide revenues from P1.4 billion to 1.8 billion in the previous year. The revenue boost, the increase in dinner purchases and the distribution is credited to SPAVI in the summer season.

In 2020, SPAVI had a net loss of P247 million, down more than 70 percent from the previous year’s consolidated net sales of P865 million.

At the end of March last year, about 91% of businesses in the sector were briefly shut down.

“Thanks to the huge efforts of our management, and to the many industry developments we have implemented, we have been able to achieve healthy cash flows and enhanced cost structures, despite the net loss for the year,” Mr. Gregorio said.

EBITDA for the full year amounted to P635 million, down by approximately 68 percent from the previous year’s EBITDA of P1,97 billion.

“On a single-store basis, revenues were down 30 percent year-on-year, except the consequences of shut-down shops,” the firm said without clear statistics.

Total year revenues were P6.6 billion, a total of 64 percent of 2019 sales reported by the group.

“We hope that dinners will begin to rebound this year, but we manage to ensure that our guests probably will continue to require easy and versatile out-of-store choices,” said Gregorio.

SPAVI plans to re-start a growth strategy for the store network, which was originally implemented owing to a pandemic. Shops in this project would need less expenditure than its conventional outlets, with quick payback times and strong returns.

It will also develop stores in one area with Shakey’s, Peri-Peri Charcoal Chicken and R&B Milk Tea.

The company plans also to introduce a “31 min. if late, it is free” promo in selected Metro Manila areas to the distribution companies for “Ghost kitchens or kitchen extensions.”

“As we step into 2021, it will be incredibly necessary to remain fluid and to respond to the evolving climate,” Mr Gregorio said.

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