C03335-2018

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)
May 11, 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 SYSTEMWIDE SALES INCREASES BY 10%, WITH EARNINGS GROWTH TEMPERED BY COST PRESSURES
Background/Description of the Disclosure

During the first quarter of 2018, Shakey’s Pizza Asia Ventures (PSE: PIZZA), the Philippines’ leading chained full-service restaurant, posted a 10% increase in systemwide sales, a measure of total sales for both company-owned and franchised stores.

The rise to Php2.2 billion was mainly attributed to a 2% growth in same-store sales and a continued store network expansion strategy.

Meanwhile, earnings grew by 6%, a tempered increase relative to sales due to increased cost pressures relative to the year before.

This resulted to the Company delivering net income of Php184 million during the year’s first three months versus the Php173 million generated the year before.

“We are pleased to have achieved a double-digit sales growth for the first quarter of 2018 despite what is typically a seasonally weak quarter and a high base last year,” said Vicente Gregorio, President and CEO of PIZZA.

“We continue to face a competitive environment, but this has been mitigated by the success of our own marketing initiatives and the efforts we have made to improve the overall Shakey’s brand experience. We look forward to positive momentum from here and expect improvements as we move to complete the year,” he added.

For the three months ending March 2018, the Company grew total revenues by 6% year-on-year to Php1.8 billion.

During the quarter, Shakey’s also successfully opened four new outlets bringing its nationwide store count to 212.

In terms of profitability, PIZZA saw its consolidated gross profit rise by 2% to Php509 million while earnings before interest, taxes, depreciation and amortisation grew at a faster clip of 5% to Php344 million.

“We continue to implement efficiency measures to cushion the impact of higher costs and inflationary pressures. Moreover, with the expected pick-up in sales moving forward, we will likewise see an uptick in our margins as we maximize operating leverage and spread out fixed costs,” said Gregorio.

During the first quarter, the Company was able to maintain its industry-leading margins of 29% and 19% for gross profit and EBITDA, respectively. PIZZA’s return on equity likewise held steady at 20% as of March 2018.

For balance of the year, the Company intends to open another 16 new branches with construction of several new stores already underway. With this, it remains well on track to bringing its total Philippine store network to 228 by end-December 2018.

Gregorio said, “We are further expanding our reach as we bring the Shakey’s experience to more and more locations beyond Metro Manila. The bulk of the 20 new stores we are opening this year are outside the first-tier cities, where urbanization and incomes continue to rise.”

The Company likewise expects an increase in same store sales growth for the rest of 2018, targeting a full year range of between 3 to 5%.

“Though we did anticipate a relatively slower start to the year, we now expect faster growth in succeeding periods as promotional and pricing strategies have already been put into place,” Gregorio added.
Other Relevant Information

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