Jollibee reports 19% growth in Q3 bottom line
Strong performance of PH, overseas operationsBy Paolo G. Montecillo |Philippine Daily Inquirer
Jollibee Foods Corp., the country’s largest food service company, generated a net income attributable to equity holders of P881.7 million in the third quarter, up by 19 percent year-on-year.
This came on the back of strong system-wide sales, which grew by 12.1 percent from the level in the same period last year.
“Sales growth was broad-based and volume-driven resulting from better-value-for-money recognition by consumers on its products and services,” Jollibee said in a statement.
Sales of Philippine brands rose by 9.6 percent while brands overseas grew by 22.6 percent.
Operations grew by 26.5 percent in China, 12.6 percent in the United States and 24.7 percent in Southeast Asia and the Middle East.
Store network worldwide expanded organically by 5.5 percent from a year ago.
In the first nine months of the year, Jollibee Foods’ system wide sales rose by 13 percent, while revenue, which pertains to sales from company-owned stores and commissaries and royalty income from franchised stores, increased by 15 percent.
Jollibee Foods’ third quarter operating income grew by 40.1 percent versus a year ago.
“These resulted from a slight decrease in the prices of raw materials, cost improvement projects at its commissaries in the Philippines and greater cost efficiency in restaurants in the Philippines where sales per store grew faster than expenses,” the company said.
Revenue likewise grew faster than the increase in general and administrative expenses incurred in connection with the cost improvement programs at Jollibee’s head offices in the Philippines and China.
Advertising and promotion expenses in the third quarter this year were also lower as a percentage of revenue. This was brought about by its more cost efficient marketing expenditure system.
The company opened 149 new stores worldwide in the first nine months of the year broken down as follow: 88 new stores in the Philippines composed of 24 Jollibee branches, 11 Chowking, four Greenwich, six Red Ribbon, 40 Mang Inasal and three Burger King outlets.
In its foreign operations, Jollibee Foods opened 61 new restaurants: Yonghe King, 42; Hong Zhuang Yuan, two; San Pin Wang, four; Jollibee, 10 and Chowking, three.