Jollibee Foods Corp. (JFC), the country’s largest food service firm, saw a significant increase in its second-quarter and first-half net income, with store sales growth remaining to be an important financial driver.
During the second quarter of the year, JFC’s attributable net income was up 32.4 percent to P1.2 billion from the P915 million it earned in the same period last year.
For the first half, JFC’s income went up by 32.7 percent to P2.1 billion from the P1.6 billion it earned for the first six months of 2012.
Operating income of JFC also increased by 45.4 percent to P1.6 billion, while operating income margin improved by 1.8 percent points, from 6 percent in the second quarter of 2012 to 7.8 percent in the second quarter of 2013.
System-wide sales, a measure of all sales to consumers both from company-owned and franchised stores, went up by 13.6 percent in the second quarter compared to the same period in 2012.
JFC explained that its global store network expansion accounted for 5 percent of the growth, while worldwide same stores sales growth contributed 9 percent, mostly from higher volume of purchases by customers. Same store growth pertains to restaurant outlets that are at least 15 months old.
The Philippine operations of the food firm reported a 12.6-percent growth in its system-wide sales while the foreign business increased by 17.5 percent, with China growing by 18.3 percent, Southeast Asia and the Middle East by 34.8 percent, and the US by 6.3 percent.
Tony Tan Caktiong, JFC chairman and chief executive officer (CEO), said new products and improvement of existing products drove strong same store sales growth of the firm. He cited that overseas, Yonghe king, JFC’s flagship brand in China, has been getting stronger even in a challenging business environment.
“Our businesses in Southeast Asia, the United States and the Middle East continued to grow robustly,” Tan said.
“We look forward to creating even better products, better quality of services with even greater value to our customers in the future, to be made possible by an even stronger organization,” he added.
Meanwhile, JFC announced on the same day that its board of directors approved the appointment of a new president and CEO. In a separate filing with the Philippine Stock Exchange, JFC disclosed that its board has appointed Ernesto Tanmantiong as president and CEO effective July 1, 2014.
Tan, the current CEO and president of JFC, will remain chairman of the company once the appointment turns effective.