Jollibee Group CEO Ernesto Tanmantiong Reports Strong Business Rebound during Annual Stockholders’ Meeting

Despite the immense challenges in the last two years, the Jollibee Group has proven resilient, successfully rebounding with its 2021 operating income reaching PhP6.3 billion—almost equal to the PhP6.5 billion it made in 2019.

During Jollibee Foods Corporation’s Annual Stockholders Meeting held today, June 24, Jollibee Group CEO Ernesto Tanmantiong shared how the business successfully turned around from a loss in 2020 to positive operating income by FY 2021 with levels matching the pre-pandemic period.

“This was our defining achievement for 2021–to have generated an operating income at par with pre-pandemic levels even as system-wide sales were behind by 13.2%. We achieved this through continued strong cost and profit management, as well as initiatives that adapted to changing consumer habits such as strengthening our off-premise capability, increasing our presence in major digital platforms, and introducing exciting new products,” shared Tanmantiong.

The Jollibee Group likewise continued with its store network expansion in 2021, opening 399 stores with a total capital expenditure of PhP7.9 billion for both new stores and renovation of existing stores. Of the 399 stores opened in 2021, 314 were opened internationally even despite the Omicron surge, reflecting the company’s accelerated global expansion plans.

In 2021, Jollibee Group made significant new investments to expand its portfolio. It increased its commitment to US$225.0 million in Titan Dining LP, the private equity fund owning the Tim Ho Wan Brand; and also added Yoshinoya to its portfolio as its first Japanese-cuisine restaurant chain in the Philippines. It also acquired a majority stake in Milkshop International Co. Ltd., which owns the popular Taiwanese bubble tea brand Milksha with over 250 outlets globally.

Strong Start to 2022

The company continued to perform well in the first quarter of 2022. System-wide sales of its businesses in China, North America (Philippine brands), Europe, Middle East, Asia, and Australia (EMEAA) have already reached pre-pandemic levels driven by continued store expansion. It opened 107 new stores in the first quarter of 2022: 19 in the Philippines, 19 in China, 9 in North America, and 13 in EMEAA. SuperFoods and CBTL also opened 19 and 28 stores, respectively.

Jollibee Group generated an operating income of PhP2.0 billion driven by the acceleration of profit growth in the Philippines. Net income attributable to equity holders of the Parent Company for the first quarter of 2022 amounted to PhP2.3 billion compared to PhP152.6 million for the first quarter of 2021.

The Jollibee Group also invested in CentralHub, a Real Estate Investment Trust with a planned Initial Public Offering (IPO). The investment in CentralHub will help continuously finance Jollibee Group’s expansion as it uses the IPO proceeds to reinvest in more properties for the REIT, thus growing the REIT further and allowing JFC to fund new stores and commissaries.

Commitment to communities

Tanmantiong shared that as the company continues investing for the long-term of its business, it also remains true to its commitment to the community through the Jollibee Group Foundation (JGF), the company’s social development arm.

JGF’s Farmer Entrepreneurship Program (FEP) has helped improve the livelihood of farmers by increasing their farm productivity and market competitiveness. Since 2008, 17 farmer groups trained under FEP have delivered nearly nine million kilos of vegetables–equivalent to over PhP360 million worth of sales.

The program has also launched its first online course on Agro-Entrepreneurship in cooperation with Xavier University-Ateneo de Cagayan to help more farmers learn the approach of directly selling to institutional markets.

Moreover, since March 2020, the Foundation has distributed more than 8.1 million meals to assist those affected by the pandemic, and has continued to provide meals to those affected by various natural calamities.

Even as new challenges emerge in the years ahead, the Jollibee Group is optimistic that it will remain resilient. “My positive outlook is based on our track record. We managed to be resilient in the face of adversity,” added Tanmantiong. “Through consistent and disciplined execution of our fundamentals of serving great-tasting food at good value for money price points and continuous innovation and quick adaptation, we will reach our vision of becoming one of the top five restaurant companies in the world.”

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