C02254-2018

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)
Apr 10, 2018
2. SEC Identification Number
54666
3. BIR Tax Identification No.
000163396
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 GROWS 2017 EARNINGS BY 14% YEAR-ON-YEAR
Background/Description of the Disclosure

The Philippines’ leading chained full-service restaurant, Shakey’s Pizza Asia Ventures Inc. (PSE:PIZZA), ended 2017 with full-year earnings of Php762 million, 14% higher than the previous year’s recurring profits of Php669 million.

Net income growth was primarily driven by the sustained increase in revenues, successful store network expansion, and maintained profitability despite higher input costs.

Systemwide sales breached the Php8 billion mark, surging 14% year-on-year to Php8.3 billion, on the back of same-store sales growth of 5%.

Shakey’s likewise ended the year with 24 new stores opened, ahead of its earlier target of 20. This brought total Philippine store network to 208 as of end 2017.

“Our strong topline performance, underpinned by healthy same-store sales growth and record new store openings last year, demonstrates the strength of the Shakey’s brand even in a highly competitive environment,” said Vicente Gregorio, President and CEO of PIZZA.

All in all, the Company saw its total revenues grow 17% to Php7.0 billion for the twelve-month period ending December 2017.

In terms of profitability, PIZZA delivered robust growth of 12% year-on-year for gross profit and 19% for EBITDA. These translated to industry-leading margins of 29% and 20% at the gross profit and EBITDA level, respectively.

“Despite higher raw material prices and the current inflationary environment, synergies realized post-acquisition of the Century Pacific Group, inventory strategies, and various operating efficiencies have supported our above average margins and allowed us to invest in capability-enhancing initiatives,” said Gregorio.

PIZZA was likewise able to maintain robust return on equity of 21% as of December 2017.

For 2018, the Company earlier announced plans to open another 20 net new stores in the Philippines which will bring its nationwide store count to 228 at the end of this year.

“Aside from opening several new stores in locations outside of typical first tier cities, we are also upgrading the look and feel of existing stores to enhance our guests’ dining experience. Parallel to these activities meant to strengthen our dine-in presence, we are likewise beefing up delivery systems to support our guests’ growing need for convenience,” he said.

Gregorio added, "While we face a tougher comparable period during the early part of this year, with Filipinos’ consumer confidence high coupled with the various initiatives we have lined up, we are looking forward to another banner year in 2018."
Other Relevant Information

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