Jollibee Foods swings to profitability in 2021, nets P5.9B

Homegrown fast-food giant Jollibee Foods Corp. (JFC) reversed its losses in 2021 amid the further reopening and recovery of the economy during the period.

In a disclosure to the Philippine Stock Exchange on Thursday, JFC reported an attributable net income of P5.9 billion, a turnaround from the P11.5 billion net loss recorded in 2020 —the height of COVID-19 lockdowns and mobility restrictions.

The company’s return to profitability last year was on the back of 20.3% growth in system wide sales - a measure of all sales to consumers both from company-owned and franchised stores - to P211.7 billion from P175.97 billion in 2020.

Revenues, likewise, grew by 18.7% to P153.5 billion from P129.3 billion year-on-year.

“We look forward to continuing strong recovery of the business in 2022 particularly if the restrictions in the Philippines are fully lifted, coupled with increased consumer spending during this election year,” said JFC chief executive officer Ernesto Tanmantiong.

JFC opened 398 new stores in 2021, including 85 in the Philippines, 108 in China, 38 in North America and 29 in EMEAA or Europe, the Middle East and Africa.

For 2022, JFC allotted a total of P17.8 billion in capital expenditures, significantly higher than the P7.8 billion capital spending in 2021.

In particular, P10 billion of the capex was set for new stores and renovations of existing stores.

JFC is planning to open 500 new stores in 2022, after opening 398 in 2021.

The balance of P7.8 billion capital expenditures will be mostly for supply chain and business technology investments.

JFC is also planning to build a new commissary facility in Cebu in order to support its expansion plans in Visayas and Mindanao.

The capital expenditures will be primarily funded by cash generated from operations, bank loans and excess cash from the remaining proceeds from the bond issuances.

“We are prepared to make this level of investments if the economies fully re-open and sales growth remains strong. Beyond 2022, our outlook for business growth is even brighter. We see very strong expansion in different parts of our business particularly those in North America, China, Southeast Asia and Europe while we expect the Philippines to sustain its healthy profitable growth,” Tanmantiong said. — LA, GMA News