Jollibee Net Income Up 16.3%

Jollibee Foods Corp. (PSE: JFC) has posted 2010 fourth quarter (4Q) sales of PhP19.46 billion, up 11.6% over the same period in 2009, while net income grew 17.4% on improved profit margins. System-wide sales include all sales to consumers both from company-owned and franchised stores. For the entire year, the company’s system-wide sales increased by 10.2% over the past year, while net income was up 16.3%.

“Practically, all our brands in all countries where we operate achieved growth in the 4Q of 2010 versus the same period in 2009, led by our businesses Yonghe King and Hong Zhuang Yuan in China of 30% and Jollibee International of 25%. The acquisition of Mang Inasal contributed 5% points to our worldwide sales growth in the period. Our worldwide store network as of December 31, 2010, stood at 2,316 stores, 23% higher than a year ago due primarily to the acquisition of Mang Inasal that added 345 stores to the Jollibee Group’s network. We were able to preserve and even slightly improve our profit margins despite the fast rising cost of labor, power and raw materials,” commented JFC’s Chairman and Chief Executive Officer Tony Tan Caktiong. He added, “We look forward to continued robust sales and profit growth in the Philippines and abroad in the years ahead. We expect our fairly new businesses in China, the United States, the Middle East, and Vietnam, and our newly acquired businesses in the Philippines to continue to deliver sales and profit growth.”

JFC’s net income margin improved from 5.6% in 2009 to 5.8% in 2010. Return on equity rose from 17.5% in 2009 to 18.6% in 2010, and basic earning per share increased to PhP3.013 in 2010, up 15.4% from 2009’s PhP2.61. Cash dividends, meanwhile, more than doubled from PhP0.85 per share to PhP2.25 per share. Investments in capital expenditures (capex) and acquisitions in 2010 likewise more than doubled to PhP5.7 billion, consisting mainly of PhP2.8 billion in capex primarily on new stores and store renovations, PhP2.7 billion for the acquisition of 70% of Mang Inasal, and PhP128 million for the initial construction cost of Jollibee Foods Processing Commissary in Anhui Province, China. JFC also entered into a joint venture agreement that will enable it to acquire by early 2011 55% of San Pin Wang, a fast food chain with 34 stores in Guangxi Province in South China.