Jollibee eyes higher sales

MANILA, Philippines - Fastfood giant Jollibee Foods Corp. said it is likely to maintain its sales momentum in the third quarter but warns that a new crisis may be on the horizon amid a fragile global economic recovery brought about by a slowing US economy and Europe’s deepening debt problem.

“Things are looking better. We are hoping that the second half will be even better compared to the same period in terms of sales and profit margin on steady prices of raw materials,” said Jollibee chief finance officer Ysmael Baysa on the sidelines of the CFO Forum yesterday sponsored by the Financial Executives of the Philippines, ING and the Economic Journalists Association of the Philippines.

Baysa, however, expressed concern over the lingering financial problems of the US and Europe – particularly Greece – which he said could create asset bubbles and ultimately affect the company’s operations.

Despite the tough global economic landscape, Baysa said the company remains on the lookout for acquisitions in Asia, particularly in China. “We continue to hold talks with several parties,” he said.

Jollibee posted a net income of P1.31 billion in the first half this year, down 8.3 percent, as higher costs of raw materials as well as increased financing charges arising from debts related to acquisitions made a dent on its bottomline.

Revenues went up 15.3 percent to P29.55 billion while system-wide sales, a measure of sales to consumers both from company-owned and franchised stores, increased 15.6 percent to P39.21 billion.

The Jollibee Group opened a total of 116 new stores from January to June this year, bringing total branch network to 1,939 in the Philippines and 2,364 worldwide: Jollibee (728), Chowking (401), Greenwich (215), Red Ribbon (213), Caffe Ti Amo (3), and Mang Inasal (379).

Overseas, the group operates a total of 425 stores: Yonghe King (226), Hong Zhuang Yuan (51), Jollibee (70) Red Ribbon (38), and Chowking (40).