Jollibee nets P216.6M in Quarter 1

Fastfood leader Jollibee Foods Corp. made a turnaround in its income performance for the first three months of the year as its net profit improved by 4.2 percent to P216.6 million, as against a five- percent reduction in the same period last year.

Based on financial documents submitted to the Securities and Exchange Commission, JFC boosted its sales by 23.7 percent to P4.07 billion during the period, notwithstanding the sluggish economic environment, as it eventually reaped the benefits of integrating the operations of Oriental fastfood chain Chowking.

Last year, the Jollibee group completed the fold-in of Chowking Foods to boost its total network to 787 outlets at end-March 2001. These include 384 Jollibee outlets, 152 Greenwich Pizza stores, 170 Chowking chains and 15 Delifrance bakery units. In addition, there are 20 Jollibee and six Chowking stores in different places abroad.

JFC chairman and CEO Tony Tan Caktiong said the company started the year on the right track as sales during the seasonally-low first quarter matched record levels registered during the fourth quarter of 2000.

"However, the inflationary effects of a weaker Philippine peso coupled with a significant increase in utility and labor costs contributed to higher operating costs," he said.

With the integration of Chowking, JFC’s systemwide sales improved tremendously, fortifying the group’s hold as the country’s largest fastfood network that accounts for over half of the market share in their respective segments.

Tan Caktiong said the dramatic improvement in their operations resulted from strong same-store sales and a reversal in operating losses to significant profits. – Conrado Diaz Jr.