Jollibee net profits rises in Q1
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Jollibee Foods Corp. said Friday net income rose 17.3 percent in the first 3 months of the year, as higher expenses offset growth in revenues, according to a stock exchange filing.
Net income attributable to shareholders grew to P1.8 billion in the first quarter from P1.5 billion during the same period in 2017, the country’s largest fast food operator said.
Gross revenues rose 19.4 percent to P35 billion while gross expenses rose 19.7 percent to nearly P32 billion, Jollibee said.
Casual restaurant operator Max’s Group said Thursday net income fell 30 percent in the first quarter due to higher costs of raw materials and labor.
Inflation reached a 5-year peak in April and on Thursday, the Bangko Sentral ng Pilipinas raised the benchmark borrowing rate for the first time since September 2014.
Questions & Answers
Q.What was Jollibee's net income for the first quarter of this year?
What was Jollibee's net income for the first quarter of this year?
Jollibee's net income attributable to shareholders reached P1.8 billion in the first three months of the year. This represents an increase from P1.5 billion during the same period in 2017.
Q.Why did Jollibee's net profit rise despite higher expenses?
Why did Jollibee's net profit rise despite higher expenses?
Net profit rose because gross revenues grew by 19.4 percent to P35 billion, outpacing the 19.7 percent rise in gross expenses to nearly P32 billion. Higher revenues helped offset the increased costs.
Q.Did other fast food operators in the region also see increased profits?
Did other fast food operators in the region also see increased profits?
No, Max's Group, another casual restaurant operator, reported a 30 percent fall in net income for the first quarter. This decline was attributed to higher costs for raw materials and labour.
Q.What economic factors might be affecting the restaurant industry in the country?
What economic factors might be affecting the restaurant industry in the country?
Inflation reached a five-year peak in April, and the central bank recently increased the benchmark borrowing rate. These broader economic changes could be influencing operating costs for businesses like Jollibee and Max's Group.
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