C01748-2017

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Mar 27, 2017
2. SEC Identification Number
54666
3. BIR Tax Identification No.
000-163-396
4. Exact name of issuer as specified in its charter
SHAKEY'S PIZZA ASIA VENTURES INC.
5. Province, country or other jurisdiction of incorporation
PHILIPPINES
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
15 KM EAST SERVICE ROAD CORNER MARIAN ROAD 2, BARANGAY SAN MARTIN DE PORRES PARANAQUE CITY Postal Code 1700
8. Issuer's telephone number, including area code
632-839-0156
9. Former name or former address, if changed since last report
N/A
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
COMMON SHARES 1,531,321,053
11. Indicate the item numbers reported herein
Item 9

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Shakey's Pizza Asia Ventures, Inc.PIZZA

PSE Disclosure Form 4-31 - Press Release References: SRC Rule 17 (SEC Form 17-C)
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Shakey’s Pizza Delivers 40% Net Income Growth in 2016
Background/Description of the Disclosure

The Philippines’ leading chained full-service restaurant, Shakey’s Pizza Asia Ventures Inc. (PSE : PIZZA), delivers a twelve-month net income of Php760 million, buoyed by stronger sales, an expanded store network, and improved profitability.

This includes net non-recurring income of Php90.3 million, a product of a change in ownership early last year and a subsequent corporate restructuring and initial public offering during the second half.

Excluding one-offs, PIZZA’s recurring net income after taxes increased by 40 percent year-on-year to Php670 million, equivalent to bottom-line margins of 11%.

System wide sales rose by 14.3% to Php7.34 billion, driven by same store sales growth of 3.9% and increased contribution of new stores.

In the last twelve months, PIZZA added an additional 17 outlets, 3 more than the 14 opened the year before, ending 2016 with a 184 Philippine store network.

Recurring revenues, including those from an in-house commissary, grew by 14.7 percent to Php6.01 billion. Late last year, a corporate restructuring took place, which included the acquisition by PIZZA of its commissary which supplies bakery products to Shakey’s as well as other food service customers.

In 2016, PIZZA also saw profitability improve as margins for recurring gross profit and earnings before interest, taxes, depreciation, and amortization (EBITDA) expanded by 820 bps to 31.0% and 320 bps to 19.7%, respectively.

The Company attributes this growth to favorable commodity prices and purchasing synergies post consolidation into the Century Pacific Group (CPG). CPG, parent company of Philippine-listed Century Pacific Food, and Singapore’s sovereign wealth fund concluded early last year a partnership to acquire majority of the pizza business from its previous owners.

Since then, recurring net income margins have also expanded by 200 bps.

Mr. Vicente Gregorio, President of PIZZA, said, “Our industry leading performance is anchored on the superior value offering of Shakey’s, its strong management team, and a brand legacy that we have built over a 40 year history here.”

Shakey’s, recognized globally as the original pizza franchise, was first established in the United States in 1954 and is best known for "the pizza that started it all". In 1975, it first opened in the Philippines where it currently maintains market leadership in both the full service and pizza chain categories.

“Our success is also driven by a mission to ‘Wow the Guest’, supplemented by excellent marketing initiatives and continued product innovation, which help consistently provide guests with a memorable dining experience,” said Gregorio.

He added, “The first two months of this year have been very encouraging and we are optimistic that we will continue the strong performance into 2017.”

This year, PIZZA is looking to roll out an additional 20 new stores. It hopes to end 2017 with a 204 store network, including its first ever branch overseas.

Apart from the Philippines, PIZZA also owns the perpetual rights to the Shakey's brand for the Middle East, Asia (excluding Japan and Malaysia), China, Australia, and Oceania. In the third quarter, it is set to open its first international store in Kuwait having just signed a development agreement with a franchisee committed to build at least 10 Shakey’s Pizza outlets in that area.
Other Relevant Information

Kindly see attached.
Filed on behalf by:
Name Giovanna Vera
Designation Head - Investor Relations