Jollibee profit up 8% to P932 M last year

Fast food leader Jollibee Foods Corp. reportd a net profit of P932.12 million in 1999, or eight percent more than its 1998 income of P863.25 million as the company groped with weaker demand due to the lingering effects of the financial crisis.

JFC chairman and CEO Tony Tan Caktiong said 1999 was "a difficult year for the fast food industry and despite the resilience of our business, JFC was not spared."

He said the company's third quarter performance was their low point for the year but this was eventually offset by much better sales growth in the fourth quarter. JFC's sales profit contracted by almost 13 percent in the third quarter due to losses of pizza subsidiary Greenwhich.

Jollibee's total sales, which also include contributions from subsidiaries Mary's Food Corp. and Delifrance, went up by 11 percent during the year from P11.64 billion in 1998 to P12.95 billion.

As of end-99, the JFC network in the Philippine include 350 Jollibee outlets, 191 Greenwich stores, six Mary's Chicken, six Delifrance booths. JFC also has 21 international outlets in areas such as Hong Kong and the US.

JFC said it has non-recurring charges worth P127 million in the fourth quarter alone for the asset write downs related to novelty items, real estate investments and a provision for the discontinuance of the operations of Mary's Chicken, although the timing for its phaseout remains to be decided. Tan Caktiong said this was a result of a decision to concentrate efforts on its major core brands.

JFC, however, has announced a merger with Chowking Foods Corp., the leader in the Oriental fast food segment to annex 159 stores and six outlets overseas.

"With the addition of Chowking to the JFC family, our leadership position in the Philippines fast food industry will be solidified," Tan Caktiong said.