Jollibee sales strongest in years
In this article (5)
Jollibee Foods Corp (JFC) has reported that its system-wide sales grew by 15.1 per cent in the second quarter compared to sales for the same period of 2015.
For the first half of the year, sales of the Philippines’ largest foodservice company grew by 14.9 per cent to Php71 billion, while revenues grew 13.7 per cent to Php54 billion, compared with the first half of 2015. In the same period, profits rose by 14.8 per cent to Php3.1 billion from Php2.7 billion.
JFC CEO Ernesto Tanmantiong said the Philippine business, which accounts for at least 80 per cent of the company’s worldwide sales, has been experiencing its strongest organic growth in many years.
Tanmantiong said all brands performed ‘very well’ and he attributes the record growth to continued improvement in product quality and value offering supported by focused marketing campaigns, store expansion and renovation, low inflation rate, healthy growth of the country’s economy and election-related spending.
Sales growth in the Philippines accelerated to 17.9 per cent in the second quarter, with brands growing in double digits.
“Our business abroad had mixed performance. Southeast Asia grew by 37 per cent, led by Singapore with 56 per cent and Vietnam with 49 per cent. The Middle East rose by 17 per cent and the US increased by 11 per cent. China’s sales decreased by 5.7 per cent due to competitive pressure on Yonghe King, our largest brand there,” said Tanmantiong.
“Sales growth in the Philippines accelerated to 17.9 per cent in the second quarter, with brands growing in double digits.”
“We look forward to a strong recovery of our Yonghe King business in the months ahead with the launch of new products with high value and taste scores supported by strong marketing campaigns and continuously building a significant business in the People’s Republic of China and other parts of the world.”
JFC CFO Ysmael Baysa said: “We look forward to continued strong profit growth while preparing for likely higher inflation rate in 2017 in the Philippines and other parts of the world and improving the profitability of our joint venture businesses.”
JFC has a 50 per cent interest in the following joint ventures with the number of stores indicated: Highlands Coffee (Vietnam, Philippines) 131, Pho 24 (Vietnam, Indonesia, Cambodia, Korea and Australia) 32, 12 Hotpot (China) 20, others 8; and a 40 per cent interest in Smashburger that has 366 outlets, mostly in the US.
As of June 30, JFC was operating 2528 restaurant outlets in the country: Jollibee 939, Chowking 457, Greenwich 237, Red Ribbon 378, Mang Inasal 455 and Burger King 62. Abroad, it had 655 stores: Yonghe King (China) 321, Hong Zhuang Yuan (China) 40, San Pin Wang (China) 59, Dunkin’ Donuts (China) 4, Jollibee 151 (US 33, Vietnam 79, Brunei 14, Saudi Arabia 10, Qatar 2, Kuwait 4, Hong Kong 1, Singapore 4, Bahrain 1 and UAE 3), Red Ribbon in the US 33, Chowking 44 (US 16, UAE 20, Qatar 4, Oman 2, Kuwait 1 and Saudi Arabia 1), Jinja Bar (US) 3.
The JFC Group has 3183 stores worldwide.
Questions & Answers
Q.What factors did the CEO identify as contributing to the record growth in the Philippines?
What factors did the CEO identify as contributing to the record growth in the Philippines?
The CEO attributed the record growth to continued improvements in product quality and value offerings, focused marketing campaigns, and store expansion. Low inflation, healthy economic growth, and election-related spending also played a part.
Q.How did Jollibee's international businesses perform, and were there any areas of concern?
How did Jollibee's international businesses perform, and were there any areas of concern?
International business performance was mixed. Southeast Asia, the Middle East, and the US saw growth, with Singapore leading. However, China experienced a 5.7 per cent sales decrease due to competitive pressure on the Yonghe King brand.
Q.Which specific JFC brands and joint ventures operate outside the Philippines, and where are they located?
Which specific JFC brands and joint ventures operate outside the Philippines, and where are they located?
Abroad, JFC operates Yonghe King, Hong Zhuang Yuan, and San Pin Wang in China, plus Dunkin' Donuts there. Jollibee, Red Ribbon, Chowking, and Jinja Bar also have outlets in various international locations like the US, Vietnam, and the Middle East.
Q.What is the CFO's outlook regarding future challenges or strategies for the company?
What is the CFO's outlook regarding future challenges or strategies for the company?
The CFO anticipates continued strong profit growth while preparing for potentially higher inflation rates in 2017 in the Philippines and other regions. He also mentioned improving the profitability of their joint venture businesses.
Reader pulse
What's the most notable aspect of Jollibee's performance?
20,171 votes so far