MANILA, Philippines – Jollibee Foods Corporation (JFC) chief executive officer Ernesto Tanmantiong admitted on Tuesday, February 18, that 2019 was a rough year for the company, as several acquisitions took a bite out of its profits.

Jollibee reported net income attributable to the parent company at P6.3 billion, 14.4% lower than the P7.4 billion recorded in 2018.

“2019 was a very tough year for JFC, but the resilience and determination of our people have kept driving the business forward,” Tanmantiong said.

Last year, Jollibee acquired The Coffee Bean and Tea Leaf for a hefty $350 million. Prior to that, it acquired burger chain Smashburger, which affected its net income last year as well.

Jollibee said Coffee Bean contributed 9.4% to the revenue growth in the last quarter of 2019, as 1,173 coffee shops helped boost the cash flow.

For the entire year, consolidated revenues increased by 11.4% to P179.6 billion, while system-wide retail sales grew by 14.9% to P243.8 billion.

Jollibee spent P10.1 billion in capital investments last year, mostly for new stores and renovation of existing ones.

Jollibee opened 273 stores in the Philippines and 224 abroad in 2019, bringing its total number of stores to 5,971. For 2020, the company aims to open 600 stores.

“2020 may mark the first time in JFC’s history when the international business generates greater organic store expansion than the Philippine business,” Jollibee said. 

Shares of Jollibee dropped by 1.9% on Tuesday. Note, however, that it disclosed its earnings after the closing bell. – Rappler.com