Jollibee seen to hit target

Jollibee Foods Corp. is on track to hit its income growth target this year as its profit improved by 6.6 percent to P451 million in the first half of the year, documents submitted to the Securities and Exchange Commission (SEC showed.

The positive results were boosted by the 20-percent surge in systemwide sales of P11.6 billion during the period, notwithstanding the sluggish economic environment, as it eventually reaped the benefits of integrating the operations of Oriental fastfood chain Chowking.

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

Last year, the Jollibee group completed the fold-in of Chowking Foods to boost its total nationwide network and complement the existing Jollibee outlets, Greenwich Pizza stores and Delifrance bakery units.

But despite the stronger sales, JFC earlier said it was cautious of its growth projection this year even as it sees earnings growing by about 10 percent.

JFC vice president for corporate finance Miguel Jose Navarrete said they remain cautious on the prospects for the second half. "The jury is still out in terms of economic activity in the country," he said. "All our bands have been doing well although our margins are somewhat pressured by the peso devaluation. Still, our situation is much better than other businesses."

He said with their systemwide revenues tracking a 20-percent growth and with no new borrowings to weigh down on their cash flow, the company is in a strong position to post continued growth this year. – Conrado Diaz Jr.