MANILA, Philippines – Higher costs of food ingredients and other raw materials resulted in a a measly 1.2% increase in the net income of homegrown food giant Jollibee Food Corp.
In a disclosure to the exchange on Thursday, February 16, Jollibee said it realized a net income of P3.25 billion in 2011, a slight increase from P3.21 billion in the previous year.
This despite the 18% hike in systemwide sales, or the measure of all sales in both the company-owned and franchised stores.
It said margins were slashed due to “raw material cost increases” but this was offset by higher sales.
Jollibee reported that its Philippine operations saw revenues grow 17.8% while those abroad increased by 19%.
Jollibee, which has been expanding abroad for growth potentials, said its stores in China reported 27.5% growth in sales, while those in Southeast Asia and the Middle East grew 27.5% and 23.3%, respectively.
Recent acquisitions–Mang Inasal and Burger King–contributed 8.2% and 17.8%, respectively, to sales growth.
It said the rest of the brands grew by an average of 8.6%.
Jollibee opened 260 new stores in 2011. Of these, 167 were opened in the Philippines, led by:
- Mang Inasal – 86 new stores
- Jollibee – 40 new stores
Jollibee also opened 93 new stores abroad, led by:
- Yonghe King in China – 70 new stores
- Jollibee Vietnam – 11 new stores
The Jollibee group operates the largest network of retail food business in the country. It ended 2011 with a portfolio of 2,469 stores worldwide.
Of this, 2,001 stores are in the Philippines, including the ff:
- Jollibee – 745 stores
- Mang Inasal – 429
- Chowking -391
- Greenwich – 205
- Red Ribbon – 208
- Burger King – 23
Its foreign portfolio has 468 stores, including the ff:
- Yonghe King – 265
- Hong Zhuang yuan – 52
- Jollibee – 78 (US 27, Vietnam 31, Brunei 11, Jeddah 7, Hong Kong 1, Qatar 1)
- Red Ribbon US – 34
- Chowking – 39 (US 19, Dubai 16, Indonesia 2, Qatar 2)