Jollibee earns P3.76 billion in 2012
EVEN if it failed to meet its 300 storetarget, Jollibee Foods Corp. (JFC) managed to register a 15.7-percent growth in its net income in 2012 to P3.76 billion from the P3.25 billion it earned in 2011.
Also, JFC’s earnings per share rose by 13.8 percent to P3.57 in 2012 from P2.23, while its net income in the fourth quarter of 2012 reached P1.3 billion, representing a 5.9percent growth compared to the same period in 2011.
JFC Chief Financial Officer Ysmael Baysa said that the firm’s reported profit included a write-off of P371 million for closures of 14 stores in the United States and 31 in China.
He explained that excluding this write-off, operating income for the fourth quarter increased by 42.2 percent and net income went up by 27.6 percent, while total year net income would have increased by 23.6 percent instead of 15.7 percent.
Most of the assets written off were leasehold improvements mainly in newly developed properties like malls where the volume of visitors did not reach the level estimated before the store opening, Baysa added.
”The significant cost of the store closures prevented JFC from achieving an otherwise outstanding finan- cial performance in 2012. We look forward to do a better job at making investments in new stores in the future,” he said.
In 2012, the group opened a total of 223 new stores in 2012—135 in the Philippines and 88 abroad. This is composed of 39 Jollibee stores in the Philippines, 21 Chowking, nine Red Ribbon, eight Greenwich, 51 Mang Inasal and seven Burger King stores.
In China, JFC established 59 Yongke King stores, two Hong Zhuang Yuan and six San Pin Wang stores, while in the United States, the group opened one Jollibee and one Chowking store. In Southeast Asia and the Middle East, the group launched 14 Jollibee and five Chowking stores.
The number of stores that JFC has opened is a little lower than its 300store target that the group announced in 2012. In June 2012, the group announced its plan to open 300 stores worldwide, 150 local and 150 globally, the highest number of stores that the company will open in one year.
“It’s actually 50:50, 150 stores in the Philippines, 150 stores globally, 100 of which is to be opened in China,” said Tony Tan Caktiong, JFC
chairman and chief executive officer.
System wide growth
The system wide sales of JFC, on the other hand, grew by 10.4 percent in the fourth quarter of 2012 compared to the same period in 2011, driven by strong same store sales and by the expansion of its store network.
For the entire year, sales of its restaurant chains in the Philippines grew by 10.3 percent while those abroad increased by 21.7 percent. System wide sales is a measure of all sales to consumers, both from company owned and franchised stores.
Tan Caktiong said that system wide sales in all regions performed strongly in 2012 led by its business in China, which grew by 27.1 percent. Brands in the Philippines performed strongly in 2012, both in sales and profit growth.
“Our efforts in strengthening the brands, improving the products and increasing the value to consumers are delivering strong results. As JFC celebrates its 35th year in 2013, we look forward to continued strong sales and profit growth this year and in the years ahead,” he added.