Pancake House income up 82% in 2005 to P34M

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Pancake House income up 82% in 2005 to P34M
Posted: 9:40 PM | Feb. 19, 2006
Christine A. Gaylican
Inquirer

Published on Page B9 of the February 20, 2006 issue of the Philippine Daily Inquirer

PUBLICLY listed fastfood chain Pancake House Inc. (PHI) was expected to have recorded a net income of P34 million in 2005, up 82 percent from P18.67 million the previous year, according to unaudited reports.

The reports showed that PHI's flagship brand, Pancake House, and Dencio's Foods Specialists Inc. were the main profit drivers last year.

Higher sales posted by Pancake House and Dencio's branches enabled PHI to increase revenues last year by 63 percent to P818 million from P503 million in 2004.

Unicapital Associate for Strategic Research Niña G. Tinio said PHI flagship brand Pancake House earned P48 million last year, almost double the P25 million recorded in 2004.

Pancake House, which increased its branch network to 58 last year from 54 stores in 2004, grew its revenues by 17.73 percent to P498 million from P423 million the previous year.

System sales for Pancake House likewise grew to P692 million from P560 million during the period as a result of the ongoing store network expansion.

System sales reflect the combined sales of both company-owned and franchised stores.

PHI, which also operates Teriyaki Boy Group Inc., also posted higher earnings before interest, taxes, depreciation and amortization in 2005 of P 115.3 million from P80.3 million the previous year.

According to Unicapital, PHI will have to work harder to bring its Dencio's chain of stores back to profitability.

Dencio's ended 2005 with 21 stores, which will grow to about 26 stores this year, according to the company's preliminary report to the Securities and Exchange Commission.

PHI took over Dencio's in September 2004.

PHI's financial performance is expected to improve further with the recent addition of Teriyaki Boy to its portfolio.

PHI now controls 70 percent of Teriyaki Boy.

Optimistic on the growth of fast casual restaurants in the Philippines, PHI has committed to put up more outlets in the coming years.

The group is expected to end 2007 with a branch network of 126 stores, 74 of which would be Pancake House; 30, Dencio's; and the remaining 22, Teriyaki Boy.