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By Likha C. Cuevas-Miel Reporter
THE country’s largest fast-food
operator told the Philippine Stock Exchange on Tuesday that its
profits rose by more than a quarter during the first six months this
year on the back of double-digit growth in sales across all brands.
Jollibee Foods Corp. (JFC) said
its net consolidated income rose 26 percent to P1.3 billion, as
revenues climbed 16 percent to P18.5 billion during the period.
System-wide sales, which pertain
to sales from company-owned and franchised stores, rose by 14.1
percent to P24.9 billion from last year, driven by the strong
performance of the firm’s domestic and international businesses
and additional new stores, JFC said.
The company opened 65 new
Jollibee, Chowking, Greenwich, Red Ribbon, Yonghe King stores
worldwide.
Cost of sales inched up to 46.4
percent of total revenues while consolidated operating expenses rose
12.7 percent to P7.7 billion over the previous year due to the
continued increase in staff cost and supplies, maintenance,
electricity and rent.
Advertising and promotion costs
jumped 32.5 percent to P510 million as JFC jacked up its advertising
budget for a subsidiary.
Net operating income went up 26.5
percent to P1.7 billion on the back of strong revenues while
operating income after tax as a percentage of revenues improved from
8.3 percent last year to 9 percent this year.
Interest income went up by 129.1
percent to P52.2 million due to JFC’s substantial cash balance,
which reached P4.9 billion by end-June. Payments for bank loans went
down by 36.3 percent to P7.8 million.
JFC earlier opened the pilot
store of its new low-priced restaurant called Tio Pepe’s
Karinderia in Edsa Central and is eyeing other food brands that it
can acquire and grow through store expansions.
An additional three fast-food
brands in China are also in the horizon, as JFC plans to grow them
within the next 2 or three years. Recently, the company bought out
its China-based partner, making it the sole owner of the Yonghe King
business for $6 million for the remaining 15 percent using its own
cash reserves.
About 30 more JFC stores abroad
would be opened, starting with its first Jollibee branch in New
Jersey, where a Red Ribbon store already operates. The company is
also putting up additional Jollibee stores in the West Coast.
JFC has earmarked P2.1 billion
for capital expenditures this year using internally generated funds.
It plans to open 100 branches in the Philippines, excluding planned
acquisitions.
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