Jollibee reports higher audited profit

Jollibee Foods Corporation, one of the largest food service companies in Asia, reported that its audited consolidated attributable net income for 2019 is 1.5 percent higher than earlier reported.

In a disclosure to the Philippine Stock Exchange, the firm said the audited figure is ₱6.4 billion compared to the unaudited ₱6.3 billion for 2019 reported on February 18, 2020.

“The improvement resulted mainly from the finalization of adjustments related to the adoption of PFRS 16, which were completed during the year-end audit process,” the firm explained.

Audited net operating income improved by ₱626.8 million or 10.7 percent compared to what was earlier disclosed due to classification of lease under interest expense.

As a result, interest expense increased by ₱518.9 million. This increase was partly offset by a ₱402.8 million increase in other income, mostly from pre-termination of leases of stores closed during the year.

JFC's revenues and system wide sales were the same as those disclosed in February, 2020.

JFC’s consolidated attributable net income of P6.4 billion in 2019 was 21.7 percent lower than the ₱8.21 billion (as restated) generated in 2018.

The net income for 2019 and 2018 include the impact of Philippine

Financial Reporting Standard (PFRS) 16. which essentially translates leased spaces into assets in the form of right-of-use (but not owned).

JFC's revenues and system wide sales increased by 11.5 percent to ₱179.63 billion and 14.9 percent to ₱243.79 billion, respectively, compared to a year ago.

Last April 7, 2020, JFC disclosed that its Board of Directors approved a cash dividend of ₱0.62 per share of common stock for all shareholders of record as of April 27, 2020 (ex- dividend date of April 22, 2020).

This amount represents 50 percent of the cash dividend declared at about the same time last year. Payment date will be on May 22, 2020.