Jollibee first-half net profit jumps 17%
MANILA, Philippines – Jollibee Foods Corporation, the country’s largest food service company, said its net income for the first half of the year grew 17.2% to P2.46 billion ($55.96 million*), from P2.1 billion ($47.78 million) in the same period last year on aggressive store expansion and higher same store sales.
The company said system-wide sales grew 14.3% in the first half of the year to P57.05 billion ($1.30 billion) from P49.9 billion ($1.14 billion) in the same period last year.
System-wide sales are a measure of all sales to consumers, both from company-owned and franchised stores.
The fastfood giant said the growth was driven by a 6% increase in store network and an 8% increase in same store sales.
For the second quarter alone, net income rose 14.8% to P1.38 billion ($31.40 million) from P1.21 billion ($27.53 billion) in the same quarter of 2013.
Jollibee’s Philippine business reported a 14.8% growth in system-wide sales in the second quarter. The foreign business grew 11.5%, with US growing by 15.3%; Southeast Asia and the Middle East by 26.5%; and China by 6%.
As of end-June, Jollibee had a network of 2,244 restaurant in the Philippines and 589 stores overseas.
On August 8, Jollibee reported that it temporarily closed down 72 local stores under its umbrella, representing 3.2% of its store network due to a problem stemming from its migration to a new IT system. The glitch has slowed down sales order taking, product loading, and transport of goods within its chain of stores.
Despite this situation, the company expects to continue to grow its sales in the second half by the same rate as in the first 6 months, Jollibee chief executive officer Ernesto Tanmantiong said.
“Our drive to bring our brands to higher quality levels through continued product improvement, introduction of new products, more targeted marketing programs, and better stores through renovations is sustaining robust sales growth,” Tanmantiong said.
“In the next months and years, we will drive for an acceleration of our store opening in the Philippines and abroad, including our businesses in China and Vietnam.”
‘We’re doing our best’
Tanmantiong said the company was doing its best to restore the availability of all products in its stores.
“We have taken immediate measures to augment our delivery capability to our stores. We have also engaged international experts and invested in additional resources to fix the system upgrade problem at the soonest possible time,” Tanmantiong.
As a result of the systems upgrade, the company has not been able to serve up to 6% of its normal nationwide sales in the first 7 days of August.
The fastfood giant said that it has sufficient raw materials, finished products, and production capacity to meet the consumer demand for the entire month of August and the months ahead, both for local and import goods. - Rappler.com
*($1 = P43.96)
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