February 11, 2022 | 00:00
MANILA, Philippines – Jollibee Foods Corp. (JFC), one of Asia’s largest foodservice companies, reported a net profit of 5.9 billion pesos last year, a reversal of the 11.5 billion peso loss recorded in 2020 .
In the fourth quarter of last year, JFC posted a net profit of 3.24 billion pesos, up 59.6 percent from 2.03 billion pesos in the same period of 2020.
JFC’s operating profit was P6.3 billion, about the same level as in 2019.
For 2022, JFC is contributing 17.8 billion pesos for capital expenditure, significantly more than the 7.8 billion pesos set aside last year.
Of this amount, 10 billion pesos will be spent on new stores and renovation of existing stores, while the balance of 7.8 billion pesos will be mainly for investment in supply chain and business technologies.
JFC plans to build a new police station in Cebu to support its expansion plans in Visayas and Mindanao. It aims to open 500 new stores in 2022, after opening 398 a year ago.
System-wide sales increased 25.2% to 62 billion pesos in the fourth quarter of 2021, bringing full-year system-wide sales to 211.7 billion pesos , up 20.3% from 176 billion pesos in 2020.
Same-store sales for the Philippine business increased 24.1% in the fourth quarter, while the international business grew 9.6%.
JFC Chief Executive Ernesto Tanmantiong said JFC’s system-wide sales in its international business in the fourth quarter matched sales in the same period before the pandemic hit.
System-wide sales in the Philippines in the fourth quarter of 2021 were still 22.6% lower than the same period in 2019. However, despite this, the operating profit of the Philippine company in the fourth quarter of 2021 had already equaled that of 2019, he mentioned.
“We look forward to a continued strong recovery in activity in 2022, particularly if restrictions in the Philippines are fully lifted, coupled with increased consumer spending in this election year,” Tanmantiong said.
JFC Chief Financial Officer Ysmael Baysa said by business units the main drivers were the Philippines, with Q4 2021 operating profit equal to Q4 2019, Smashburger, with Q4 2019 losses reduced by 80% and CBTL which turned its losses into profits in 2021.
“CBTL is now a profitable business,” Baysa said.
The JFC Group opened 398 new stores in 2021: 85 in the Philippines, 108 in China, 38 in North America and 29 in EMEAA. SuperFoods and CBTL opened 72 and 66 stores respectively. A total of 302 stores were permanently closed during the quarter: 86 in the Philippines and 216 overseas.