Jollibee 2014 Profit Up by 14.8%

Manila–(PHStocks)–Jollibee Foods Corporation (PSE: JFC), the country’s largest food service company, reported a consolidated net income attributable to equity holders of the Parent Company of PhP5.362 billion in 2014, 14.8% higher than the amount generated in 2013, and 1.8% higher than the net income attributable to equity holders of the Parent Company of PhP5.267 billion for 2014 reported on February 23, 2015 to the Philippine Stock Exchange and the Securities and Exchange Commission, that was based on unaudited fmancial statements.

The improvement in 2014 audited net income over the report made earlier resulted mainly from a favorable inventory variance arising from the reconciliation of inventory balance per physical count versus balance per books. The result of the reconciliation was not yet available at the time the disclosure was made.

The consolidated revenues of Jollibee Foods Corporation, which include sales of company-owned stores, commissary sales to franchised stores, franchised fees and royalty fees grew by 12.9% in the entire year while system wide sales, a measure of all sales to consumers, both from company-owned and franchised stores rose by 13.3%.

Gross profit margins were sustained at 18.7% from 2013 to 2014 despite significant increases in raw material prices. Operating income margin, however declined from 7.4% of revenues in 2013 to 6.8% in 2014 particularly due to higher general and administrative expenses related to information technology investments and fringe benefit tax expense on stock options. Net income margin improved slightly from 5.9% in 2013 to 6.1% in 2014.

Return on Equity (ROE) improved slightly from 21.5% in 2013 to 21.6% in 2014. Cash decreased by 23.1% to PhP7.618 billion as of December 31,2014 after investing PhP5.642 billion in capital expenditures on new stores and store renovations, Commissaries and information systems. JFC also returned Php1.561 billion in regular cash dividends to its shareholders

Today, April 7, 2015 JFC also disclosed that it declared a regular cash dividend ofPhpO.80 per share to stockholders of record as of May 7, 2015 payable on May 29, 2015. This represents a 6.7% increase over the regular cash dividend of PhpO.75per share paid at about the same time last year.

JFC’s Chief Financial Officer, Ysmael V. Baysa gave the following statement:

“We look forward to continued double digit growth in sales and profit in the years ahead, sustaining or even improving on our trajectory in the past 5 years. For 2015, our budget assumes a profit growth that is lower than historical rate as rising raw material prices continue to bring pressure on our profit margins and as we invest heavily in building our organization capability primarily in store network expansion and in information technology.”

For 2015, JFC plans to invest Php9.1 billion in capital expenditures, 61.3% higher than the Php5.642 billion spending in 2014.

JFC operates the largest food service network in the Philippines. As of February 28, 2015, it was operating 2,317 restaurant outlets in the country: Jollibee brand 865, Chowking 415, Greenwich 214, Red Ribbon 329, Mang Inasal 450 and Burger King 44. Abroad, it was operating 616 stores: Yonghe King (China) 314, Hong Zhuang Yuan (China) 43, San Pin Wang (China) 52, Jollibee 123 (US 32, Vietnam 60, Brunei 12, Saudi Arabia 10, Qatar 3, Kuwait 3, Singapore 2 and Hong Kong 1), Red Ribbon in the US 34, Chowking 47 (US 19, UAB 20, Qatar 5, Oman 2 and Kuwait 1), Jinja Bar (US) 3. The JFC Group had a total of 2,933 stores worldwide.

JFC also has a 50% interest in joint ventures for the following stores: Highlands Coffee (Vietnam, Philippines) 76, Pho 24 (Vietnam, Indonesia, Philippines, Cambodia and Korea) 47, and 12 Sabu (China) 20.

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