Jollibee's profits rise by double-digits on strong sales
CHERYL M. ARCIBAL, GMANews.TV
08/13/2009 | 10:40 PM
Jollibee Foods Corp., the Philippines’ largest chain of fast food restaurants, said profits during the second quarter rose by double digits, boosted by sales which also grew at the same pace.
Earnings from April to June rose 15.6 percent to P746 million as system wide retail sales climbed 11.1 percent to P15.886 billion, Jollibee said.
For the year's first half, net income reached P1.308 billion or higher by 16.2 percent from P1.125 billion reported in the same period in 2008.
System wide retail sales surged 12.4 percent to P30.956 billion.
Jollibee’s “relative resilience" and “profit margin recovery" makes officials optimistic about long-term growth, said Tony Tan Caktiong, Jollibee Foods chairman and chief executive officer.
However, the company’s outlook for the short term continues to be tempered with caution, he added.
The worldwide recession has dampened the growth rates in consumer spending in branded restaurants including those in the fast food segment, he said.
"Sales growth in the next months will remain a big challenge for the organization," Caktiong added.
In the first semester, sales of Jollibee Foods grew 6.6 percent while sales abroad increased by 57.8 percent owing to the effect of the acquisition of the Hong Zhuang Yuan restaurant chain in Beijing, China.
Without results from the acquisition, sales abroad improved by 37 percent.
The company's investments in the first half reached P1.2 billion, 19.5-percent higher than the P1 billion spent during the same period in 2008.
The Jollibee Group opened 73 stores in the first six months of 2009, almost equal to the new 72 stores opened in the same period in 2008.
"Based on trends and forecasts, we will likely achieve only a single digit sales growth in the second half of 2009 versus the same period last year. The costs of raw materials and utilities on the other hand are forecast to rise again by the fourth quarter after three quarters of decline. These will bring new pressure on profit margins," said Ysmael Baysa, Jollibee Foods chief finance officer.
Jollibee Foods operates the Philippines' largest fast food network.
As of end-June, the company has a total of 1,528 stores in the Philippines. These include 664 Jollibee outlets, 390 Chowking branches, 228 Greenwich stores, 210 Red Ribbon branches, 23 Delifrance restaurants, and 13 Manong Pepe’s outlets.
It also runs 317 stores abroad. These are Yonghe King in China with 154 stores; Jollibee, 50; Red Ribbon, 33; Chowking, 31; CST, one; Hongzhuangyuan, 39: and Lao Dong (Taiwan), nine, for a total of 1,845 stores worldwide. - GMANews.TV
Earnings from April to June rose 15.6 percent to P746 million as system wide retail sales climbed 11.1 percent to P15.886 billion, Jollibee said.
For the year's first half, net income reached P1.308 billion or higher by 16.2 percent from P1.125 billion reported in the same period in 2008.
System wide retail sales surged 12.4 percent to P30.956 billion.
Jollibee’s “relative resilience" and “profit margin recovery" makes officials optimistic about long-term growth, said Tony Tan Caktiong, Jollibee Foods chairman and chief executive officer.
However, the company’s outlook for the short term continues to be tempered with caution, he added.
The worldwide recession has dampened the growth rates in consumer spending in branded restaurants including those in the fast food segment, he said.
"Sales growth in the next months will remain a big challenge for the organization," Caktiong added.
In the first semester, sales of Jollibee Foods grew 6.6 percent while sales abroad increased by 57.8 percent owing to the effect of the acquisition of the Hong Zhuang Yuan restaurant chain in Beijing, China.
Without results from the acquisition, sales abroad improved by 37 percent.
The company's investments in the first half reached P1.2 billion, 19.5-percent higher than the P1 billion spent during the same period in 2008.
The Jollibee Group opened 73 stores in the first six months of 2009, almost equal to the new 72 stores opened in the same period in 2008.
"Based on trends and forecasts, we will likely achieve only a single digit sales growth in the second half of 2009 versus the same period last year. The costs of raw materials and utilities on the other hand are forecast to rise again by the fourth quarter after three quarters of decline. These will bring new pressure on profit margins," said Ysmael Baysa, Jollibee Foods chief finance officer.
Jollibee Foods operates the Philippines' largest fast food network.
As of end-June, the company has a total of 1,528 stores in the Philippines. These include 664 Jollibee outlets, 390 Chowking branches, 228 Greenwich stores, 210 Red Ribbon branches, 23 Delifrance restaurants, and 13 Manong Pepe’s outlets.
It also runs 317 stores abroad. These are Yonghe King in China with 154 stores; Jollibee, 50; Red Ribbon, 33; Chowking, 31; CST, one; Hongzhuangyuan, 39: and Lao Dong (Taiwan), nine, for a total of 1,845 stores worldwide. - GMANews.TV
