LOCAL fast-food giant Jollibee Foods Corp. (JFC) said its net income grew 10 percent during the first half of the year to P3.37 billion, from last year’s P3.06 billion, driven mainly by the acceleration of profit growth in foreign businesses, lower losses in joint ventures.
For the first six months of 2017, all foreign regions—China, North America and Southeast Asia and the Middles East generated profit that was significantly higher than that generated in the same period a year ago, the company said.
System-wide sales, a measure of all sales to consumers both from company-owned and franchised stores grew by 14.7 percent in the second quarter, compared to sales in the same period of 2016. For the first half of the year, its system-wide sales grew by 13 percent, including divestments and acquisitions.
Without divestments and acquisitions, system-wide sales grew by 14 percent, with global store-network expansion accounting for 6 percent to 7 percent, same store-sales growth contributing 6 percent and currency translation by less than 1 percent.
“Same store-sales growth and store-network expansion in the Philippines were in line with worldwide growth rates,” it said.
Revenues grew in line with system-wide sales at 13 percent to P61.84 billion, from last year’s P54.42 billion.
System-wide sales in all regions performed strongly in the second quarter of 2017, led by the Southeast Asia, excluding the Philippines, business which grew by 42 percent.
North America business grew by 32 percent, the Middle East business by 32 percent, China business by 17 percent and the Philippine business by 12 percent.
System-wide sales of the foreign business accelerated to 25 percent.
This growth rate excluded the impact of 2016 divestments and the consolidation of SuperFoods Group, with business mostly in Vietnam starting in May 2017. The SuperFoods Group is now 60-percent owned by the company.
Image credits: Aena Marie Rebutoc