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MANILA, Philippines – Fast food giant Jollibee Foods Corporation is planning to put up stores in Malaysia and Indonesia over the next two years to further expand its presence in ASEAN region.
The company plans to get local partners from Malaysia and Indonesia to jumpstart its investments in these countries, Jollibee chief finance officer Ysmael Baysa said in an interview with reporters on Wednesday, August 6.
Baysa added the company might bring its flagship brand Jollibee in those countries since it has not found any Malaysian and Indonesian brands that it could purchase.
“We hope that within the next two years to go back to Indonesia and enter Malaysia,” Baysa said.
Jollibee is already present in Vietnam, Brunei, Singapore, China, Hong Kong, Dubai, and the Middle East.
Not spared from the truck ban
Baysa said the company continued to perform strongly in the second quarter of the year despite high commodity prices and the impact of the Manila truck ban.
In the first quarter, Jollibee reported a net income of P1.098 billion ($25.10 million*), up from P881 million ($20.14 million) in the same quarter of 2013.
Most brands under the Jollibee group implemented two price adjustments since the start of the year because of the rising costs of raw materials. The adjustments however were minimal and did not affect volume growth, Baysa said.
“Jollibee’s business remained strong in the second quarter,” Baysa said.
The company expects prices of commodities like rice and pork to become stable next year as supply gradually improves.
Meanwhile, Baysa said the truck ban has affected the company’s operations.
“It has slowed our delivery of products from the warehouse to the stores because we can only make deliveries at night,” Baysa explained.
Jollibee, which outsells McDonald’s in the Philippines, earlier reported plans to double earnings in 5 years as it accelerates its expansion in China and seeks acquisitions in the US.
The fast food giant expects to get half of its sales from its overseas stores by 2020, up from 20% now.
As of end-March, it was operating 2,217 restaurants in the Philippines and 588 overseas. – Rappler.com
*($1 = P43.74)
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