FAST food operator Jollibee Foods Corp. (JFC) is setting aside P9.1 billion for its expansion projects next year.
The 2015 capital expenditure [capex]exceeds this year’s P6.7 billion allocation by 42 percent.
“The 2015 capex will be used for store openings in the Philippines and abroad, store renovations here and abroad, investments in commissary construction and commissary capacity increase in the Philippines,” JFC said.
“These investments will be financed by JFC’s cash reserves and the money to be generated from next year’s operations,” it added.
Meanwhile, the company saw an 18 percent increase in net income in the first nine months of the year on sustained same store sales and growth in store network.
In a statement, JFC said its January to September net income grew 18 percent to P3.7 billion from P3.13 billion last year. Total sales increased 13 percent to P65.75 billion from last year’s P57.83 billion.
In the third quarter alone, the food chain recorded a 15-percent increase in net profit to P1.2 billion from P1.04 billion a year ago. Revenues rose 11.6 percent to P22.05 billion from P19.77 billion on strong same store sales.
Its system wide sales for the nine-month period – or total sales from company-owned and franchised stores– grew 13 percent to P85.47 billion from P75.22 billion a year ago.
In terms of geographical gains, the firm’s Philippine business grew 13 percent from January to September, while its foreign segments rose 9.6 percent.
Foreign sales contributions are as follows: 22.3 percent from Southeast Asia and Middle East stores, 8.4 percent from China, and 4.9 percent from the United States.
The group opened 148 stores as of end-September, composed of 114 stores in the Philippines and 34 abroad.
As of end-September, JFC has 2,849 stores in its portfolio: 2,258 in the Philippines and 591 outside the country.
In the Philippines, JFC has 847 Jollibee stores, 404 Chowking outlets, 208 Greenwich, 311 Red Ribbon, 450 Mang Inasal, and 38 Burger King stores.
Outside the country, the company has 309 Yonghe King stores in China, 43 Hong Zhuang Yuan in China, 47 San Pin Wang in China, 111 Jollibee stores in various countries (30 in the US, 50 in Vietnam, 12 in Brunei, 10 in Saudi Arabia, three in Qatar, three in Kuwait, one in Hong Kong and two in Singapore), 31 Red Ribbon stores in the US, 47 Chowking stores in various markets, and three Jinja Bar outlets in the US.
JFC holds 50-percent joint-venture stakes for the following stores: 75 Highlands Coffee shops (Vietnam and the Philippines), 55 Pho 24 stores (Vietnam, Indonesia, Philippines, Cambodia, Macau and Korea), and 18 stores for its 12 Sabu brand in China. Kristyn Nika M. Lazo