C06593-2017

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)
Nov 7, 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
MANILA, 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) 867-7677
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
9 - OTHER EVENTS

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 9 MO NET INCOME GROWTH OF 15%
Background/Description of the Disclosure

The Philippines’ leading chained full-service restaurant, Shakey’s Pizza Asia Ventures Inc. (PSE:PIZZA), delivered recurring net income of Php519 million for the first nine months of 2017, a 15% increase versus the comparable period last year. Net income grew primarily on the back of a bigger revenue base and improved operating profitability.

System wide sales rose by 15% to Php6.0 billion, driven by same store sales growth of 6% and an expanding local store network. Since the start of the year, PIZZA has added 16 new outlets, ending September 2017 with a Philippine store network of 200. It expects to end the year with 207 stores in the Philippines, ahead of its earlier target of 204.

All in all, the Company’s net revenues for the nine-month period grew by 18% to Php5.0 billion versus the Php4.2 billion during the comparable period last year. For the third quarter alone, revenues grew by 11% to Php1.6 billion.

“We encountered a more competitive environment in the third quarter, which is also typically the second half’s leaner period. We are confident however that with the various product and marketing initiatives implemented, we will see another round of good sales growth as we enter
the Christmas season – historically the strongest part of the year,” said Vicente Gregorio, President and CEO of PIZZA.

In terms of margins, that of recurring net income slightly dipped to 10.4% due primarily to interest expense incurred by the Company beginning middle of 2016.

However, focusing on operations alone, PIZZA was able to improve profitability with operating profit and adjusted EBITDA margins expanding by 210 bps and 120 bps respectively versus the same period last year. These were attributed to synergies implemented post acquisition by the
Century Pacific Group, as well as various price increases and operating efficiencies in anticipation of higher input costs.

As a result, operating income and EBITDA adjusted for nonrecurring items grew by 36% and 26% respectively, with their corresponding margins at 16.4% and 19.4% during the nine months of the year.

“For the last quarter, we expect seasonally strong revenues to translate to better profitability metrics as we spread costs over a much larger base. We will also continue our efforts to monitor expenses closely as we start to feel the impact of higher raw material price and a weaker peso on our gross margin,” said Gregorio.

He added, “Nevertheless, we remain on track towards hitting our full year targets and now look forward to a good start for 2018.”

Apart from the Philippines, PIZZA also owns the perpetual rights to the Shakey's brand for the Middle East, most of Asia, China, Australia, and Oceania.

It recently opened its first international store in Kuwait having signed a development agreement for the construction of at least 10 Shakey’s outlets in the region within a span of 7 years.

It also recently signed another area development agreement to build at least 10 Shakey’s Pizza outlets in the United Arab Emirates (UAE) over a span of 5 years. The first store, to be located in Dubai, is scheduled for opening in the first half of 2018.
Other Relevant Information

Please see attached.
Filed on behalf by:
Name Genevieve Yu
Designation Compliance Officer