Jollibee earns P895-M in Q1, up 33%

MANILA, Philippines – Homegrown giant Jollibee Foods Corp. registered a 33% net income jump to P894.7 million in the 1st quarter of 2013 compared to the same period a year ago.

In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, May 15, the food service company attributed the earnings growth to strong store sales and an improved operating margin.

Jollibee’s system wide sales, an indicator of sales from both company-owned and franchised stores, grew by 10.6% during the period. Its business in the Philippines grew by 9.7%. Its operations in China grew by 18.9% while its Southeast Asia and Middle East business grew 22.9%. The company’s US operations contracted by -0.7%.

Jollibee CEO Tony Tan Caktiong said that the company’s sales growth was due to new products introductions, the improvement of existing products and good product value perception from consumers.

“In the Philippines, practically all same store sales growth came from increased volume from higher consumer visits. The stable commodity prices and low inflation rates allowed us to avoid price increases while continuously improving our product menu, taste and quality. The healthy growth of the economy and the election spending also contributed to our strong sales performance,” said Tan Caktiong.        

Ysmael V. Baysa, Jollibee’s CFO, said that the company has allocated P5.5 billion in capital expenditures in 2013. He added that 73% of the budget would be directed towards the opening of new stores and the renovation of existing ones.

“Our planned network expansion in 2013, along with strong same store sales performance should enable us to achieve healthy sales growth both in the Philippines and abroad for the balance of the year,” Baysa said.

Jollibee is the largest restaurant network in the country. As of March 31, the company was operating 2,090 stores under its Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King brands. Jollibee Foods Corporation also has 562 stores in China, the US, Vietnam, Brunei, Jeddah, Qatar, Hong Kong, Kuwait, Singapore, Dubai, Indonesia and Oman. – Rappler.com