JFC 1Q Profit Rises by 10%
Manila–(PHStocks)–Jollibee Foods Corp. (PSE: JFC), the country’s largest food service company, posted a 10% growth in revenues while system-wide sales, a measure of all sales to consumers, both from company-owned and franchised stores grew by 9.5% in the first quarter of 2015 compared to the same quarter of 2014.
JFC’s net income attributable to equity holders of the parent company rose by 10.2% in the first quarter versus the same period last year.
In the first quarter of 2015, system-wide sales of the Philippine business grew by 9.9%, driven by a 5.3% growth in store network and about 5% growth in same store sales. Sales from foreign businesses grew by 8.1%, with China growing by 7.7%, the United States by 11.7% and Southeast Asia and the Middle East by 5%. These growth rates are net of the effect of the appreciation of the Philippine peso versus other currencies. Excluding the impact of exchange rate changes, sales from its restaurants abroad grew by 11.1%.
Jollibee’s Chief Financial Officer Ysmael V. Baysa commented, “Overall business in the Philippines remained strong, growing by almost 10% 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. 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.”
The JF C Group opened a total of 60 stores worldwide in the first quarter of 2015; 49 in the Philippines and 11 in its foreign business. On May 4, 2015, it opened a Jollibee store in The Dubai Mall in the United Arab Emirates, registering one of the highest opening day sales of a store in the company‘s history and, re-establishing the brand in the country after 20 years.
Jollibee operates the largest food service network in the Philippines. As of March 31, 2015, it was operating 2,335 restaurant outlets in the country: Jollibee brand 869, Chowking 419, Greenwich 216, Red Ribbon 334, Mang Inasal 452 and Burger King 45. Abroad, it was operating 616 stores: Yonghe King (China) 313, Hong Zhuang Yuan (China) 43, San Pin Wang (China) 53, Jollibee 123 (US 32, Vietnam 60, Brunei 12, Saudi Arabia 10, Qatar 3, Kuwait 3, Hong Kong l and Singapore 2), Red Ribbon in the US 34, Chowking 47 (US 19, UAE 20, Qatar 5, Oman 2 and Kuwait 1), Jinja Bar (US) 3.
The JFC Group had atotal of 2,951 stores worldwide. JFC also has a 50% interest in joint ventures for the following stores: Highlands Coffee (Vietnam, Philippines) 77, Pho 24 (Vietnam, Indonesia, Philippines, Cambodia, Macau and Korea) 45, and 12 Sabu (China) 20.