Net profit grows 25% in 2016
JOLLIBEE Foods Corp. (JFC) is earmarking P14 billion in capital expenditures this year to fund the opening of new stores and renovation of existing ones and to reorganize and expand its commissaries.
In a statement on Tuesday, JFC Chief Executive Officer Ernesto Tanmantiong said P7.6 billion of the capital spending program will be allocated to store openings and renovation while the P5.6 billion balance will go to commissary investments.
This year’s P14 billion capex is higher than the P10.4 billion spending program in 2016, which was mostly used to open a total of 468 stores including joint venture stores, and renovate 300 outlets comprised of 200 local stores and 150 others abroad.
Excluding the joint venture stores, JFC opened 340 stores last year, 243 of which are in the Philippines and 97 abroad. To date, the company operates a total of 3,254 stores, composed of 2,643 outlets in the Philippines and 611 stores abroad.
“In 2016, we opened the most number of new stores in JFC’s history. This was made possible by improving the return of investments on our stores and by increasing our organization capability to build and open more stores, in better locations and with better quality than ever before—on a worldwide basis,” Tanmantiong said.
“We look forward to continued strong profitable growth in the years ahead in the Philippines and abroad,” he added.
After opening its first Jollibee store in Canada last year, JFC plans to open Jollibee stores in other markets including the United Kingdom (somewhere in London), Italy, Australia and Japan this year.
2016 profit up 25%
JFC on Tuesday also said it recorded P6.14 billion net income in 2016, 25 percent higher than the previous year’s P5 billion.
Revenues climbed 13.1 percent to P114 billion after system wide retail sales—or sales both from company-owned and franchised stores—improved 14 percent to P149 billion.
The strong financial performance was due to higher revenue streams from expanded local and international stores, it said.
In the fourth quarter alone, JFC’s net income jumped 63.7 percent from the previous year to P1.75 billion, while revenues went up 14 percent to P31.7 billion and system-wide retail sales rose 14 percent to P41.4 billion.
Earlier this year, the JFC group reorganized its international operations, divesting successfully from its investments in San Pin Wang to focus on its Yonghe King venture in China, and Jinja Bar and Bistro to focus on its Smashburger joint venture in the US.
Late last year, the company entered into a joint venture deal with Viet Thai International Joint Stock Company to list their JV firm Superfoods Group in the Vietnam Stock Exchange (VSE) on or before July 2019.
Superfoods Group is the owner and operator of brands Highlands Coffee and Pho 24, and is a franchisee of Hard Rock Café.