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Jollibee to open 170 more stores after second-quarter profit slows

(Source: Interaksyon, by Philippine News Agency | Aug. 7, 2015)

Jollibee Foods Corp. (JFC) is ramping up its store expansions both here and overseas as it aims to achieve double-digit sales growth in the next few years.

“We are on track to open at least 200 new stores in one year in the Philippines, the first time we will be able to do so. Historically, we were opening a hundred new stores per year in the country,” said JFC’s chief executive officer Ernesto Tanmantiong.

Tanmantiong said the company aims to open 100 more new stores overseas this year, bringing to 300 the total number to be opened, also a first in its history with 100 stores abroad. The bulk of the store opening will be in the People’s Republic of China.

JFC opened 131 new stores worldwide, of which 102 were in the Philippines, the highest store opening in the first six months of a year. The JFC Group had 168 more stores worldwide versus a year ago.

The company accelerated its store network expansion to 3,000 worldwide as of June 30, 2015.

“The key drivers of our store network growth are strong same store sales growth and improved profitability and financial returns of our stores, built over the past two years across the brands and across different regions in the world…,” Tanmantiong said.

The company bared its expansion plan after its profit rose by 5.4 percent in the first half of 2015 to P2.6 billion from P2.47 billion last year.

It posted a 1.6-percent rise in net income in the second quarter alone due to higher raw material prices and major investment spending on information technology (IT).

JFC said its revenues also climbed by 9.5 percent to P47.85 billion from P43.70 billion.

“We look forward to resurgence to double-digit sales and profit growth in 2016 and in the years ahead as we realize the benefits of improved profit margins, acceleration of store network expansion, stabilization of our IT cost and higher profit margin contribution by our businesses abroad, even as all regions worldwide have grown their profit in the first half of 2015 versus a year ago,” said JFC chief financial officer Ysmael Baysa.

JFC operates the largest food service network in the Philippines. As of June 30, 2015, it was operating 2,374 restaurant outlets in the country – 880 under Jollibee brand, 422 under Chowking, 219 under Greenwich, 349 under Red Ribbon, 459 under Mang Inasal and 45 under Burger King.

Abroad, it was operating 627 stores under various brands: Yonghe King, Hong Zhuang Yuan and San Pin Wang in China; Jollibee in US, Vietnam, Brunei, Saudi Arabia, Qatar, Kuwait, Singapore and Hong Kong; Red Ribbon in the US; Chowking in the US, United Arab Emirates, Qatar, Oman and Kuwait; and Jinja Bar in US.

JFC has also a 50-percent interest in joint ventures for the following stores: Highlands Coffee, Pho 24 and 12 Sabu.

 

Article Link: http://www.interaksyon.com/business/115645/jollibee-to-open-170-more-stores-after-second-quarter-profit-slows

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