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Jollibee, among pandemic’s biggest losers, swings back to profits in 2021

Ralf Rivas
Jollibee, among pandemic’s biggest losers, swings back to profits in 2021

Courtesy of Jollibee

Jollibee nets P5.9 billion in 2021, a reversal from the massive P11.5 billion in losses in 2020

MANILA, Philippines – Jollibee Foods Corporation (JFC) has reversed its losses incurred due to the coronavirus pandemic as mobility restrictions eased worldwide and consumer spending picked up.

JFC’s net income in 2021 stood at P5.9 billion, a reversal from the massive P11.5 billion in losses in 2020. The conglomerate was among the Philippines’ publicly listed companies that posted the sharpest losses in 2020.

Earnings in the 4th quarter gave the biggest boost to the full-year figure, growing 59.6% to P2.03 billion.

System-wide sales, which is a measure of all sales to consumers, grew 20% to P211.7 billion, while revenues jumped 18.7% to P153.5 billion. Growth was driven by sales in the Philippines and North America, as well as sales from subsidiaries like Coffee Bean and Smashburger.

JFC chief executive officer Ernesto Tanmantiong said that the company’s international sales in the 4th quarter had equaled the sales in the same period before the COVID-19 outbreak.

Sales in the Philippines during the 4th quarter of 2021, however, was still 22.6% lower than in 2019.

“We look forward to continuing strong recovery of the business in 2022 particularly if the restrictions in the Philippines are fully lifted, coupled with increased consumer spending during this election year,” Tanmantiong said.

For 2022, JFC allotted P9 billion for capital expenditures for new stores, a 50% increase compared to the P6 billion spent in 2021. 

“Beyond 2022, our outlook for business growth is even brighter. We see very strong expansion in different parts of our business particularly those in North America, China, Southeast Asia, and Europe, while we expect the Philippines to sustain its healthy profitable growth,” Tanmantiong added.

The JFC Group opened 398 new stores in 2021: 85 in the Philippines, 108 in China, 38 in North America, and 29 in Europe, the Middle East and Africa. SuperFoods and Coffee Bean opened 72 and 66 stores, respectively. A total of 302 stores were permanently closed during the last quarter: 86 in the Philippines and 216 abroad.

JFC’s financial position improved significantly due to the significant increase in its operating cash flows, the issuance of P12 billion of preferred shares in October 2021, and the repayment of $203.5 million of bonds plus other debts, even as it acquired brands such as Yoshinoya, increased its stake in Tim Ho Wan, and took majority of Milkshop International. – Rappler.com

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.