Raises capex by 68.5%
Jollibee Foods Corp. (JFC) has set a target of “double-digit growth in sales and profit” for 2015 and beefed up its capital spending for the year by 68.5 percent to P9.1 billion, Chief Financial Officer Ysmael Baysa said on Wednesday.
He said the company will spend P6.7 billion on expansion and operations, P1.7 billion on outlets in China and P700 million in the United States, Southeast Asia and the Middle East.
“For 2015, our budget assumes profit growth that is lower than the historical rate as rising raw material prices continue to bring pressure on our profit margins, and as we invest heavily in building our capability, primarily in store network expansion and in information technology,” Baysa said.
JFC earlier announced it would extend its reach to Canada and Japan and open an initial five stores of Dunkin Donuts in China. The company hopes to establish more than 1,400 Dunkin’ Donuts stores in China in the next 20 years.
In 2014, JFC posted a 16.2 percent increase in income to P5.4 billion from P4.7 billion a year ago, while revenues grew 12.9 percent to P90.67 billion from P80.28 billion.
The company’s well-known brands include the flagship Jollibee, as well as Chowking, Greenwich, Red Ribbon, Mang Inasal, and Burger King.
JFC has three joint ventures in China, consisting of a commissary in Anhui province, San Pin Wang and 12 Sabu.