Singapore-based Golden Plate Pte. Ltd., a wholly owned subsidiary of Jollibee Worldwide Pte. Ltd., is acquiring shares 60 percent of Hong Kong’s Meko Holdings Ltd. worth a total $16.08 million.
The ongoing transaction forms part of Jollibee Foods Corporation’s larger plan of boosting its Hong Kong sales via the purchase of a majority stake in Meko Holdings which is its master franchise holder in the island economy owned by China.
The remaining 40 percent will continue to be owned by Meko Holdings shareholders.
“The share purchase agreement and shareholders’ agreement are expected to be signed by the parties on April 5, 2023, subject to the fulfillment of agreed closing conditions,” Jollibee told the Philippine Stock Exchange.
“Hong Kong is an important market for Jollibee and an important part of JFC China’s strategy to elevate the Jollibee brand in a general population or mainstream market. Hong Kong is renowned for its relationship with a vast variety of food and attracts both a strong base of local consumers and tourists,” the company said.
As at end-February, the company operates 6,506 stores worldwide of which around half or 3,281 are in the Philippines and the other half in prominent cities around the world.
Jolibee Foods has 501 stores in China, 385 in North America, 640 with SuperFoods in Vietnam, 1,079 under the Coffee Bean & Tea Leaves (CBTL) brand and 287 with Milksha.
Its largest outlets by brand worldwide are Jollibee with 1,594 stores, CBTL 1,079 stores, Chowking 613 stores, Mang Inasal 571 stores and Highlands Coffee 610 sgtores.
Jollibee reported net income last year hitting P7.55 billion, a 26 percent rise from previous year’s P5.5 billion, despite weaker fourth-quarter profits.
In the fourth quarter alone, its income dropped 90 percent to P320 million from previous year’s P3.28 billion due to increased spending and provisions to curtail non-priority brands.
Consolidated revenues grew 36 percent for the quarter to P61.54 billion from P45 billion the year prior and 38 percent for the full year to P211.9 billion from P153.57 billion.
System wide sales, a measure of all sales to consumers, both from company owned and franchised stores, grew 38 percent during the quarter to P85.94 billion from the previous P62.03 billion.
For the full year, system wide sales grew 40 percent to P296.82 billion from P211.71 billion.
