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Jollibee net income up by 15% in 2012

Jollibee Foods Corp. (JFC) said on Thursday it posted more than 15-percent increase in its net income in 2012 due to higher sales of its fast-food chains both in the Philippines and abroad.

The company reported to the Philippine Stock Exchange that its net income last year reached P3.76 billion after its system-wide sales grew by more than 12 percent.
 
The system-wide sales of Jollibee, the country’s largest fast-food chain, refer to the measure of all its sales to customers, both from the company-owned stores and those branches owned by the franchise.
 
For the entire 2012, the company said its system-wide retail sales reached P92.27 billion from the previous year’s P82.17 billion.
 
Jollibee Chairman and Chief Executive Officer Tony Tan Caktiong said the higher sales were due to its strong business in China, which grew by 27 percent, while its sales in Southeast Asia and the Middle East grew by 24 percent.
 
“Our efforts in strengthening the brands, improving the products and increasing the value to consumers are delivering strong results,” Caktiong said in a statement.
 
Most of the company’s sales, however, still remain in the Philippines with 2,074 stores.
 
Its brands include Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King. The company carries almost the same brand overseas except in China where it carries Chinese brands like Yonghe King, Hong Zhuang Yuan and San Pin Wang.
 
Worldwide, the company had a total of 2,628 stores at the end of 2012, an increase from the 2,469 in 2011.
 
The company said that its profit included a write-off of P371 million for closures of 14 stores in the United States and 31 in China.
 
“Most of the assets written off were leasehold improvements mainly in new-developed properties like malls where the volume of visitors did not reach the level estimated before opening,” it added.
 
“The significant cost of the store closures prevented JFC from achieving an otherwise outstanding performance in 2012.”
 
(Source: business Mirror)
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