JOLLIBEE Foods Corp. (JFC), the country’s largest fast food operator, posted a 12.6-percent improvement in first quarter net income as it registered modest growth across all its business segments.
In a statement, the company said net income grew 12.6 percent to P1.23 billion in the first three months of the year from P1.09 billion in the same period last year.
It said system-wide retail sales, a measure of all sales to consumers, went up 9.5 percent to P29.9 billion in the first quarter from P27.3 billion a year ago, while revenues jumped by 10 percent to P23 billion from P20.9 billion previously.
It said growth was observed across its business segments: 9.9 percent growth in its Philippine business and an 8.1-percent expansion in its foreign operations, mainly on the strong performance of its businesses in China, the United States, Southeast Asia and Middle East.
“Overall business in the Philippines remained strong, growing by almost 10 percent in system- wide sales in the first quarter despite a high base from last year. The brands continued to bear the pressure of higher raw material prices with their impact on operating margins,” JFC chief financial officer Ysmael V. Baysa said.
“We look forward to improving raw material price trends and higher growth rate of our store network in the months ahead. Foreign businesses continued to grow well, with strong same-store sales growth and improving profitability in China and very robust business growth in Vietnam and in some parts of the Middle East,” he added.
In the first three months of the year, JFC opened a total of 60 stores — 49 in the Philippines and 11 abroad. As of end-March, the company was operating 2,951 stores worldwide — 2,335 outlets in the country and 616 outside the Philippines.
Baysa earlier said the company plans to grow sales and profits by “double digits” this year. In line with this, the company allotted P9.1 billion for capital spending this year, which is 68.5-percent higher than the P5.4 billion actual spending in 2014.
Of the full-year capital spending of P9.1 billion, P6.7 billion will be used to expand operations in the Philippines, P1.7 billion will be for its China expansion, and the remaining P700 million will be used for its US, Southeast Asia, and Middle East expansion.
JFC is also looking to extend its reach to Canada and other the Middle East in the short term as well as in Japan over the longer term with its frontline brand Jollibee among its chain of brands.
Additionally, the fast food operator also plans to open an initial five Dunkin’ Donuts outlets in China which is expected to cost a total of P75 million.
In December last year, JFC partnered with Jasmine Asset Holding Ltd. to jointly operate the Dunkin’ Donuts brand in China. The joint venture plans to establish more than 1,400 Dunkin’ Donuts stores in China over the next 20 years.
Some of JFC’s well-known brands include the flagship Jollibee as well as Chowking, Greenwich, Red Ribbon, Mang Inasal, and Burger King.
JFC also has three more joint ventures in China which include a commissary in Anhui province, and the operations of San Pin Wang and 12 Sabu.