Fast-food giant Jollibee Foods Corp. grew its net profit last year by 15.1 percent to P3.72 billion, which reflects an extraordinary item related to the rationalization of its overseas store network.
For the fourth quarter alone, JFC’s net profit went up by 5.9 percent to P1.24 billion.
During this period, JFC wrote off P371 million due to the closure of 14 stores in the United States and 31 in China.
Excluding this non-recurring item, JFC’s core net income rose by 27.6 percent in the fourth quarter and 23.6 percent for the whole of 2012.
Most of the assets written off were leasehold improvements mainly in newly developed properties like malls where the volume of visitors did not reach the level estimated before the store opening.
“The significant cost of the store closure prevented JFC from achieving an otherwise outstanding financial performance in 2012. We look forward to doing a better job at making investments in new stores in the future,” JFC chief finance officer Ysmael Baysa said Thursday in a statement.
System-wide sales grew by 10.4 percent in the fourth quarter and by 12.3 percent in the full year to P25.35 billion and P92.27 billion, respectively.
Full-year revenues were up by 13.6 percent year on year to P71.05 billion.
For the entire year, domestic sales went up by 10.3 percent while overseas sales grew at a faster pace of 21.7 percent.
JFC has a worldwide store network of 2,628 of which 79 percent, or 2,074 stores, are in the Philippines under various brands such as flagship Jollibee, Chowking, Red Ribbon, Greenwich, Mang Inasal and Burger King.
Tony Tan Caktiong, JFC chairman and CEO, said system-wide sales in all markets performed strongly in 2012 led by China, where business expanded by 27.1 percent last year.
Southeast Asia and the Middle East grew by 23.8 percent and United States by 9.2 percent.
In China, JFC’s largest overseas market, it operates Yonghe King (297 stores), Hong Zhuang Yuan (46 stores) and San Pin Wang (40).
“Our efforts in strengthening the brands, improving the products and increasing the value to consumers are delivering strong results. As JFC celebrates its 35th year in 2013, we look forward to continued strong sales and profit growth this year and in the years ahead,” Tan Caktiong said.
For 2012 alone, the group opened a total of 223 new stores: 135 in the Philippines and 88 abroad.
JFC’s return on equity for the year rose to 18.3 percent from 17.6 percent in the previous year.