Jollibee reports 25% profit growth, sets overseas expansion

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Jollibee reports 25% profit growth, sets overseas expansion
Posted: 2:39 AM | May 11, 2006

Inquirer

FAST-FOOD firm Jollibee Foods Corp. plans to diversify into new brands overseas, particularly India and China, company chairman Tony Tan Caktiong said Wednesday as Jollibee reported a 25-percent growth net income to P448.7 million in the first quarter of the year from P358.3 million in the same period in 2005.

Revenue rose 16 percent to P7.6 billion from P6.5 billion, and system-wide retail sales -- sales of company-owned and franchised stores -- rose 15.2 percent to P10.4 billion from P9.0 billion.

"The food service industry in the Philippines grew slightly in the first quarter of 2006, as consumers visited food service stores only at the same frequency as last year, which was a difficult year," Tan Caktiong said. "Fortunately, we were able to grow our business by improving our products and service and this was made possible through the hard work of our people."

Tan Caktiong said Jollibee was exploring possible acquisitions in the fast-food industries in India and China, and was looking at businesses that might include noodle chains and bakeshops.

He said the Jollibee group might acquire a food chain brand in India this year.

Jollibee was in talks with New Delhi family restaurant Nirula's for possible acquisition before the Indian firm sold out to another company.

In China, it is expanding its Yonghe King brand and is open to new acquisitions, Tan Caktiong aid.

Jollibee is set to open its first store in a key city in southern China, and is studying locations in Shenzhen, Guangzhou and Shanghai, he said.

In the United States, the Jollibee group will open a new Red Ribbon Bakeshop in the East Coast in October.

Last year, the Jollibee group reported a 10.6-percent growth in revenue to P29.0 billion from P26.2 billion IN 2004. System-wide sales grew 12.1 percent to P39.8 billion.

Among the group's brands, Jollibee increased sales 8.1 percent last year, Chinese fast-food Chowking 13.1 percent, pasta and pizza chain Greenwich 5.9 percent, and China-based brand Yonghe King 43.2 percent. Red Ribbon contributed 1.6 percent of the total system-wide sales. With INQ7.net

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