(Source: Inside Retail Asia | Aug. 13, 2015)
Philippines-based fast food chain operator Jollibee Foods has surpassed the 3000 store milestone as it reports a 7.4 per cent increase in net income for the first half of 2015, to P2.7 billion (US$58.5 million).
Sales rose 9.5 per cent, but increased cost of raw materials squeezed profit growth.
Having reached the 3000 store milestone, the company has no plans to slow its growth.
“We are on track to open at least 200 new stores in one year in the Philippines, the first time we will able to do so,” said JFC CEO Ernesto Tanmantiong said in a statement.
“Historically, we were opening 100 new stores per year in the country. We look forward to opening 300 new stores worldwide this year, also a first in our history, with 100 abroad, the bulk of which will be in the People’s Republic of China,” he added.
“We look forward to JFC’s resurgence to double-digit sales growth in the quarters and years ahead.”
CFO Ysmael V. Baysa said the group hopes to achieve double-digit growth in 2016 due to the network expansion and improved margins.
“Raw materials prices are [now] declining, however their benefits on profit margins have been offset by high levels of inventories of materials with still high prices. We deliberately increased our inventories in the Philippines starting in 2014 as a safety measure during a major new system implementation, and as a way of dealing with the logistics and delivery challenges in the country,” Baysa said.
Jollibee has 2374 outlets in the Philippines and 627 overseas – 3001 in total.