Jollibee income grows by more than threefold
LOCAL fast food giant Jollibee Foods Corp. said its income grew more than threefold to P5.09 billion in the first half from last year’s P1.12 billion on the back of its record-high system-wide sales in the second quarter.
System-wide sales, a measure of all sales to consumers, both from company-owned and franchised stores, rose 35 percent to P133.12 billion in January to June from the previous year’s P98.3 billion.
For the April to June period, system-wide sales rose 45 percent to P73.15 billion from the previous P50.51 billion. Income for the quarter almost tripled to P2.78 billion from the previous P976 million.
“We are encouraged to see further improvement in dine-in sales while at the same time sustaining growth in our delivery business. Outside the Philippines, our China business saw double-digit decline in sales as our restaurants particularly in Shanghai were closed temporarily for most of the quarter due to heightened Covidrelated restrictions,” Jollibee CEO Ernesto Tanmantiong said.
Same store sales for the Philippine business increased by half in the second quarter as all brands registered strong double-digit growth on the recovery of demand following the easing of Covid-related restrictions in many parts of the country.
The international business grew by 7 percent 29 percent decline in the China’s same store sales growth due to Covid-related restrictions. north America grew 7.5 percent, Europe/ Middle East/other parts of Asia rose 14 percent, The Coffee Bean and Tea Leaf posted a 16-percent growth and while Superfoods recorded a 50-percent increase.
“The softness in China’s sales was however, offset by other international markets, such as north America and EMEAA particularly in Vietnam at 50.9 percent growth for Jollibee and Superfoods, which continued to grow well with robust same store sales growth,” Tanmantiong said.
“We are very confident about the strong recovery of our China business in the months ahead, faster sales and profit growth of our other businesses abroad and sustained strong growth of our Philippine business.”
The company generated a new high of P3.1 billion in operating income in the second quarter, double the level a year ago driven by the strong profit performance of the Philippine business. Operating margin improved by 2.1 percentage points to 5.9 percent from an improvement in gross profit and total expenses as a percentage of total revenue.
During the first half, the company had 230 new stores, 50 of which were in the Philippines, 38 in China, 16 in north America and 18 in other rgions. Superfoods, CBTL and Milksha opened 47, 52 and 9 stores, respectively. The group, however, closed a total of 130 stores during the period: 31 in the Philippines and 99 abroad.