ASEAN KEY DESTINATIONS
Jollibee posts 4.8% recurring profit growth to P6.4B in 2015
Jollibee Foods Corporation, the country’s biggest food service company and Asia’s largest restaurant firm, reported a 4.8 percent improvement in net recurring income to P6.43 billion last year from P6.14 billion in 2014.
In a disclosure to the Philippine Stock Exchange, Jollibee said system-wide sales rose 10.9 percent to P130.73 billion in 2015 from P117.9 billion in the previous year due to new stores opened as well as growth in same store sales.
“We are pleased to have opened 303 stores in 2015. This is the highest number of store opening in a single year in JFC’s history,” said Jollibee Chief Executive Officer Ernesto Tanmantiong.
He noted that “the new stores are performing well, particularly those in the Philippines, exceeding their target sales and return on investments. These are marks of the strong health of the brands and of JFC’s increased organization capability.”
Jollibee’s worldwide store network was 7 percent higher as of December 31, 2015 than a year ago. Combined with a worldwide same store sales growth of 6-7 percent, Tan said “the business is experiencing the highest organic growth in many years.”
However, Jollibee reported a 10.4 percent decline in attributable net income to P4.81 billion last year from P5.36 billion in 2014 due to P903 million in non-recurring gains.
JFC chief financial officer Ysmael V. Baysa said these extra-ordinary expense items “were associated with our information technology upgrade, the increase in our network development organization, the acquisition of Smashburger, and the extra supply chain and logistics costs needed to support our business in the Philippines that has been growing faster than we anticipated.”
He added that “these are necessary investments that are helping make possible JFC’s short and long-term sales and profit growth. We do not expect the same rate of expense increases in 2016.”
Tan said that, “for 2016, we are allocating P10.4 billion in capital expenditures of which P7.5 billion is for new stores and renovation of existing stores. We look forward to a robust business growth in 2016 and in the years ahead.”
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below