One of the country’s largest food company, Jollibee Foods Corp. (JFC), concluded the first quarter of 2013 with a P894.7-million profit attributable to equity holders, or a 33-percent increase, that was driven by stronger store sales growth.
A corporate disclosure to the Philippine Stock Exchange on Wednesday showed that the company’s strong same-store sales growth and improvement in operating margin drove the significant increase in
profit. The group specified that its system-wide sales, a measure of all sales to consumers, both from company-owned and franchised stores, grew by 10.6 percent in the first quarter compared to the same period in 2012.
The Philippines business of JFC expanded by 9.7 percent, China by 18.9 percent, and Southeast Asia and the Middle East by 22.9 percent. Meanwhile, its United States business declined slightly by 0.7 percent. Generally, the foreign business sales of the company grew by 14.5 percent.
Tony Tan Caktiong, JFC chief executive officer, said that new product introductions, existing product improvement and good product value perceptions by its consumers have been driving same-store sales growth across brands in the Philippines and in other countries.
“In the Philippines, practically all same-store sales growth came from increased volume from higher consumer visits. The stable commodity prices and low inflation rates allowed us to avoid price increases while continuously improving our product menu, taste and quality. The healthy growth of the economy and the election spending also contributed to our strong sales performance,” he said.
Same-store sales growth pertains to restaurants that were opened at least a year ago. It excludes sales growth from new store openings.
Operating income of JFC also amounted to P1.17 billion, an increase of 32.9-percent increase over the same period last year.
JFC Chief Financial Officer Ysmael Baysa further disclosed that higher restaurant operating profit margins across businesses around the world drove its operating income.
He also said that JFC’s capital expenditure budget for 2013 amounts to P5.5 billion, 73 percent of which is for investments in new stores and in renovations of existing stores.
“Our planned network expansion in 2013, along with strong same-store sales performance, should enable us to achieve healthy sales growth both in the Philippines and abroad for the balance of the year,” Baysa added.
Madelaine B. Miraflor