Jollibee Foods Corp. posted a 10-percent year-on-year profit increase in the fourth quarter of 2011 to P1.16 billion, as a double digit expansion in business volume and cost control measures offset declining margins during the period.
For the full year 2011, however, JFC’s net profit attributable to equity holders of parent firm rose by only 0.5 percent to P3.2 billion as high input costs especially in the first semester gnawed at its bottom line.
New acquisitions and the strong growth posted by its overseas business allowed JFC to reverse the profit decline recorded in the first half of the year.
JFC’s fourth quarter system-wide sales—a measure of sales to consumers by both company-owned and franchised stores—grew by 18 percent year-on-year. Philippine sales expanded by 17.8 percent which was outpaced by the 19-percent growth of its overseas business. Its business in China grew by 27.5 percent while those in Southeast Asia and Middle East rose by 23.3 percent.
JFC said newly acquired food chain Mang Inasal and Burger King contributed 9.2 percent of the 17.8 percent sales growth while the rest of the brands grew by 8.6 percent in the fourth quarter compared to a year ago.
In the fourth quarter, earnings per share expanded by 9.8 percent. Net income margin, however, slowed to 6.5 percent from 7.1 percent a year ago due to raw material cost increases, which were partly offset by belt-tightening measures.
Net income as a percentage of revenue improved to 6.5 percent from 4.6 percent in the first nine months of the year. “This improvement offset the negative profit growth rate in the first half of the year and brought 2011 profit at par with the previous year,” JFC said.
Last year was also marked by anemic domestic economic growth of 3.7 percent compared to 7.6 percent in 2010. Doris C. Dumlao