Local fastfood giant Jollibee Foods Corp. (JFC) on Thursday said its net income last year reached P7.55 billion, a 26 percent rise from the previous year’s P5.5 billion, despite weaker fourth quarter profits.
For the fourth quarter alone, JFC’s income plunged by 90 percent to P320 million from the previous year’s P3.28 billion due to due to provisions to curtail non-priority brands and increased spending.
Consolidated revenues grew by 36 percent for the quarter to P61.54 billion from P45 billion in the previous year and 38 percent to P211.9 billion for the entire 2022 from P153.57 billion in 2021.
Systemwide sales—a measure of all sales to consumers, both from company owned and franchised stores—grew by 38 percent to P85.94 billion in the fourth quarter from the previous year’s P62.03 billion. For the entire 2022, its systemwide sales grew 40 percent to P296.82 billion from the previous P211.71 billion.
“Looking ahead, while we expect macroeconomic challenges to persist in 2023, we are confident that the JFC Group is resilient and well-positioned to drive near-term growth. We have clear priorities on profitability while we continue to invest strategically to deliver long-term growth and value for our shareholders,” company CEO Ernesto Tanmantiong said.
Full year systemwide sales in the Philippines and international rose by 44 percent and 34 percent, respectively, led by SuperFoods that grew more than double. China’s performance, however, was flat due to strict Covid-related health measures and lockdowns.
“Our 2022 sales growth was driven by the 27 percent same store sales growth (SSS), 6.1 percent from new stores, the impact of the Milksha acquisition, and 5.2 percent contributed by foreign currency translation gain,” Tanmantiong said.
“Dine-in sales improved significantly driven by increased mobility due to easing of restrictions in markets where we operate. Off-premise channels, particularly delivery showed continued resilience and we expect sustained robust growth as we improve further our digital touchpoints.”
JFC continued its global expansion momentum as it opened 542 stores and grew its store network by 9.2 percent versus the prior year, exceeding its guidance for 2022.
“This is the highest number of stores opened in a single year in JFC’s history,” Tanmantiong said.
At the end of 2022, the group operated 6,480 stores worldwide, with the Philippines at 3,285 and international at 3,195.
Based on its target for the year, JFC projects full year systemwide sales to rise by 15 percent to 20 percent and same store sales growth by 7 percent to 10 percent. It expects store network to expand by not less than 5 percent. Operating income growth will be in the range of 20 percent to 25 percent
The group plans to open 550 to 600 owned and franchised stores in 2023 and expects capital expenditures to be in the range of P17 to P19 billion.