• Jollibee H1 net profit up 19.8%

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    JOLLIBEE Foods Corp. (JFC) said it recorded 19.8-percent net income growth for the first six months of the year due to higher sales at existing stores and in its new stores network.

    JFC booked P2.516 billion net income for the first half compared to last year’s P2.1 billion despite the higher cost of raw materials, it said.

    System-wide retail sales, or the measure of the entire JFC sales, climbed 14.3 percent to P57 billion from P49.9 billion, driven by a 6-percent increase in new stores sales and an 8-percent increase in same store sales.

    Same stores are the restaurants that were already open at least a year ago.

    JFC’s Philippine sales rose 14.8 percent to P43.7 billion in the first half from P38 billion a year ago, while sales from its foreign businesses improved 11.5 percent. Sales of its US operations grew 15.3 percent, Southeast Asia and Middle East sales rose 26.5 percent, and China sales grew 6 percent.

    The Jollibee Group said it opened 108 new stores in the first half—84 in the Philippines, 24 abroad—amounting to a total of 2,833 stores worldwide as of end-June. JFC has 2,244 stores locally and 589 stores outside the country.

    Last week, JFC expressed apologies to its customers for the limited availability of products and the temporary closing of 72 Jollibee stores due to a company-wide systems upgrade in August 1. The upgrade slowed ordering operations and resulted in limited food items at many Jollibee stores.

    JFC promised to normalize operations and reopen the affected branches as soon as possible.

    JFC’s local brands are Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King, while overseas brands include Yonghe King, Hong Zhuang Yuan and San Pin Wang in China; Jollibee; Red Ribbon; Chowking; and Jinja Bar in United States.

    The company has a presence in the US, China, Brunei, Saudi Arabia, Qatar, Kuwait, Hong Kong, Singapore, Oman, Vietnam, Indonesia, and Cambodia, among others.

    JFC has also 50 percent interest in joint ventures for stores such as Highlands Coffee in Vietnam and Philippines; as well as Pho in Vietnam, Indonesia, the Philippines, Hong Kong, Macau and Cambodia; and Sabu in China.

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    1. Please note that the purported chicken shortage and eventual branch closures happened in August and not covered by the 1H2014 financial results hence expect the adverse consequences within 9M2014 financial results.