Jollibee earnings fall to ₱1.87 billion

Jollibee Foods Corporation (JFC), one of Asia's largest food service companies, reported a 7.9 percent dip in attributable net income to ₱1.87 billion in the third quarter of 2019 due to losses from Smashburger in the United States and Red Ribbon in the Philippines. In a disclosure, the firm said production in the new Red Ribbon commissary had reached normal volume level in September, 2019 but productivity level has yet to reach the desired level, which is expected to be achieved by the first quarter of 2020. JFC's profit for the third quarter included an extra-ordinary gain of ₱l.3 billion arising from the purchase of The Coffee Bean and Tea Leaf (CBTL) brand, which was completed on September 24, 2019. CBTL' s trademarks were transferred to a new company based in the Republic of Ireland. The trademarks and related intellectual property were valued at US$354 million. "The current profit challenges of JFC are short term. We look forward to profit resurgence in 2020 and in the years ahead, both in the Philippines and abroad,” said JFC Chief Financial Officer Ysmael V.Baysa. Systemwide sales, a measure of sales to consumers both from company¬ owned and franchised stores, grew by 7.7 percent in the third quarter of 2019. Global same store sales grew by 2.5 percent while restaurant expansion contributed 6.6 percent, partly offset by the negative impact of changes in currency exchange rates.( James A. Loyola)