Jollibee posts 61% hike in quarterly profit, eyes expanding intl business

LISTED food service company Jollibee Foods Corp. (JFC) reported Monday a 61.2-percent increase in net profit for the third quarter to P440.5 million, compared to P273.2 million in the same period last year.
           
Revenues, on the other hand, grew 16.7 percent to P8.02 billion over the year-ago level of P6.87 billion.
           
In an interview, JFC chief finance officer Ysmael Baysa said the better financial results was influenced by the 15.7-percent rise in system wide sales, a measure of all sales to consumers both from company-owned and franchised stores, driven by the strong performance of most brands in the Philippines, the acquisition of the Red Ribbon restaurant chain and a substantial growth in its foreign operations.
           
“Domestic business sales increase by 12 percent while foreign business sales grew by 50 percent including the acquisition of Red Ribbon,” said Baysa.
           
In the coming years, he disclosed, the company would gear itself to make its international operations account for 50 percent of the group’s total revenues.
           
“We are in that path to achieve that in a few years time,” he said.
           
The company plans to open six new Red Ribbon stores in the US next year, and according to Baysa, the group will be spending at least $1.8 million to support this expansion. The new stores will be established in Queens, New York; Bergenfield, New Jersey; two in Las Vegas, Nevada and another two branches in California.
           
As of end-September, there were 19 Red Ribbon stores abroad.
           
In addition, the company will try to set aside P1.8 billion for next six to eight years to acquire additional brands that will complement its current portfolio.
           
“If you take a look at our portfolio, we do not have yet a bread store and fast food stores which specializes in Filipino and Japanese food,” Baysa said.
           
He declined to identify though the company’s acquisition prospects.
           
As of end September, JFC was operating a total of 1,329 stores in the Philippines—Jollibee, 559; Chowking, 342; Greenwich, 241; Red Ribbon, 146; and Delifrance, 41.
           
Abroad, the group ended the nine-month period with 167 stores—Yonghe King in China, 105; Jollibee in the US, 11; Red Ribbon in the US, 19; Chowking in the US, 10; Chowking in Dubai, 6; Chowking in Indonesia, 3; and Jollibee in other countries, 13.

Business Mirror

November 14, 2006