Jollibee makes profit in 1st semester

Jollibee Foods Corporation (JFC), the largest Asian food service company, reported a 16.1 percent growth in attributable net income to 14.05 billion in the first half of 2018 from the 13.49 billion earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, Jollibee said its net income for the period included foreign exchange gains of 169.1 million.

System wide sales, a measure of all sales to consumers both from company-owned and franchised stores grew by 23.2 percent to 199.91 billion from 181.08 billion while revenues rose 21.4 percent to 175.1 billion from 161.84 billion.

Excluding the impact of the consolidation of Smashburger effective April 17, 2018, system wide sales grew by 18.7 percent for the first half of 2018.

System wide sales grew by 26.8 percent in the second quarter compared to sales in the same period of 2017. Without Smashburger, system wide sales grew by 18.1 percent for the second quarter of 2018.

This was driven by 7.2 percent same store sales growth, 8.9 percent growth in store network and 2.0 percent impact of change in foreign exchange rates.

System wide sales in all regions performed strongly in the second quarter of 2018 led by the North America business which grew by 195.6 percent due to the consolidation of Smashburger (23.6 percent exSmashburger).

Europe, Middle East and Asia ex-Philippines (EMEAA) business rose by 46.1 percent, China business by 17.4 percent and the Philippine business by 15.8 percent.

System wide sales of the foreign business accelerated to 71.0 percent. Excluding Smashburger, system wide sales of the foreign business for the second quarter of 2018 grew by 27.4 percent.

Growth in the Philippine business which accounts for 70 percent of JFC’s worldwide system wide sales was driven by 8.0 percent same store sales growth and 7.8 percent increase in store network.

JFC’s investments for future growth remained robust. Capital expenditures and acquisition for the first half of 2018 amounted to 18.3 billion, more than double the 14.0 billion spent during the same period in 2017.

The JFC Group opened 192 stores in the first six months of 2018 (115 in the Philippines and 77 abroad), 22.3 percent higher than the 157 new stores opened in the same period in 2017.

Smashburger added 349 stores or 8.9% to JFC’s worldwide store network. On March 18, JFC opened its first store in Europe, in Milan, Italy.