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Homegrown fast-food giant Jollibee Foods Corp. booked a 9.6-percent year-on-year growth in first quarter net profit to P1.53 billion as the company hiked its stake in Mang Inasal while growing overall sales at a double-digit pace.
System-wide retail sales grew by 12.2 percent year-on-year to P38.54 billion in the first three months, Jollibee disclosed to the Philippine Stock Exchange on Friday.
In April 2016, Jollibee boosted its stake in Mang Inasal by buying the 30 percent interest held by founder Edgar Sia II. This boosted earnings contribution from this brand and contributed to the profit growth.
On system-wide sales, new stores contributed 7.2 percentage of the three-month growth in sales while same stores contributed 5 percentage to such growth.
Three-month operating income went up by 5.2 percent year-on-year to P1.83 billion.
Philippine brands grew business by 11.8 percent while the foreign business expanded at a faster pace of 13.7 percent.
The expansion in foreign business was driven by improved sales in all regions – China, North America, Southeast Asia and the Middle East. Growth was especially noted in China, with the strong recovery of Yonghe King.
The 13.7 percent growth in foreign business included windfall from the divestment last year of San Pin Wang in China and Jinja Bar in the US.
Jollibee’s foreign business now accounts for its global system-wide sales, not yet taking into account existing joint ventures.
As of end-March, Jollibee was operating 2,684 restaurants in the country. Including overseas stores, total store network stood at 3,304, excluding those operated by joint venture firms.
Recently, Jollibee raised its stake in the Vietnamese firm SuperFoods Group to 60 percent from 40 percent in preparation for the latter’s stock market debut.