Fast food giant Jollibee Foods Corp. on Thursday reported net income last year rising 26 percent to P7.55 billion from previous year’s P5.5 billion, despite weaker fourth-quarter profits.
In the fourth quarter, its income fell 90 percent lower to P320 million from the previous year’s P3.28 billion on account of provisions curtailing non-priority brands and increased spending.
Consolidated revenues grew 36 percent for the quarter to P61.54 billion from P45 billion the previous year and 38 percent for the full year to P211.9 billion from P153.57 billion in 2021.
System wide sales, a measure of all sales to consumers whether company owned or franchised stores, grew 38 percent in the fourth quarter to P85.94 billion from a previous P62.03 billion.
For the entire year, system wide 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 system wide sales in the Philippines grew 44 percent and global by 34 percent, led by SuperFoods which more than doubled even as its China operations were flat due to strict Covid-related health measures and lockdowns.
“Our 2022 sales growth was driven by 27 percent same-store sales growth, 6.1 percent from new stores, the impact of the Milksha acquisition, and 5.2 percent contributed by foreign currency translation gain. 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,” Tanmantiong said.
Jollibee opened 542 stores and grew its store network by 9.2 percent, exceeding its guidance for 2022.
“This is the highest number of stores opened in a single year in JFC’s history,” he said.
As at end-2022, the group operates 6,480 stores worldwide, with the Philippines accounting for 3,285 and international of another 3,195.
Jollibee projects full year systemwide sales rising 15 percent to 20 percent, with same-store sales growth of 7 percent to 10 percent and store network increasing by not less than 5 percent.
Operating income growth ranges from 20 percent to 25 percent
The group plans opening 550 to 600 owned or franchised stores this year and expects capital expenditures ranging from P17 to P19 billion.
