Fast-food giant Jollibee Foods Corp., barring any “surprises,” will post record sales and profit in 2012 driven by the continued expansion of its international branch network and the resilience of its business model.
But the company’s founder and chair, Tony Tan Caktiong, said the possibility of global economic woes affecting consumer confidence in the country could still threaten the company’s targets.
“If there are no surprises, 2012 would definitely be a better year than 2011,” Tan Caktiong said at the sidelines of the company’s shareholders’ meeting on Friday. “But a single event abroad can change the direction for us,” he told reporters.
He said the current debt-related problems in Europe, which almost resulted in Greek’s exit from the euro zone, would not likely have a direct effect on the Philippine economy.
“But when OFWs (overseas Filipino workers) suddenly start fearing for their jobs, they will tell their families here to start saving. And that will lead to lower sales for us,” he said.
Previously, inflation in food prices represented the single-biggest drag on Jollibee’s bottomline. “But inflation is low and it’s steady. So I have to say, Europe has overtaken inflation as our biggest concern,” he said.
In the first quarter of the year, Jollibee posted an 8.2-percent increase in net income to P682 million. This was on the back of a 15-percent jump in system-wide retail sales.
Last year, the company underwent a restructuring of its business that saw the company acquire two major local fast food chains, “Mang Inasal” and “Burger King.” The company also closed down its “Manong Pepe’s” chain and sold its “Ti Amo” ice cream business.
The company spent a total of P7.4 billion last year for the expansion of its operations. Half of this went to acquisitions while the balance went to the opening of new branches and renovation of existing ones.
This year, the company plans to accelerate the expansion of its branch network here and abroad using a capital expenditure budget of P5.8 billion. A total of 300 new stores will be opened, including the first Jollibee branch in Singapore.