Jollibee spending P12 billion for capex

MANILA, Philippines — Jollibee Foods Corp. (JFC), the Filipino-owned Asian food conglomerate, is allocating P12 billion for capital expenditures this year, of which P7 billion will be used for new stores and renovation of existing branches.

The amount is 33.3 percent higher compared with the actual capital expenditures last year as the company remains bullish on the business after growing its net income 15.3 percent to P7.1 billion in 2017.

System wide retail sales grew 15.2 percent to P171.8 billion last year while revenues grew to P131.6 billion, up 15.6 percent from the previous year.

JFC poured in P9 billion in capital investments mostly in new stores and supply chain facilities. In all, the JFC Group opened 328 new stores in the Philippines and 137 new stores abroad.

It closed the year with 3,797 stores, higher by 16.7 percent compared with 2016’s 3,253 stores.

Sales of the Philippine business grew 13.2 percent last year as the company’s store network expansion continued. Sales of the foreign business likewise grew 23.3 percent with the Southeast Asia business outside the Philippines growing 39.1 percent.

For its expansion abroad, JFC said this would steadily continue. It has so far opened Jollibee Scarborough store in Toronto, Ontario, its second store in Canada last April 1. It also opened Jollibee Milan in Italy last month, marking its foray in Europe.

Both stores are registering some of the highest sales per day in the entire JFC store network.

Moving forward, JFC also plans to enter the United Kingdom, Malaysia and Indonesia this year.

JFC operates the largest food service network in the Philippines. As of February 28 it was operating 2,884 restaurant outlets in the country: Jollibee brand 1,071 stores; Chowking 529; Greenwich 271; Red Ribbon 425; Mang lnasal 495; and Burger King 93.

Abroad, it is operating 939 stores: Yonghe King (China) 311; Hong Zhuang Yuan (China) 44; Dunkin’ Donuts  (China) 16; Jollibee 201 (US 37, Vietnam 99, Brunei 15, Saudi Arabia 12, UAE 10, Qatar seven, Singapore five, Kuwait four, Hong Kong eight, Bahrain one, Canada two and Oman one); Red  Ribbon  in the US 31; Chowking 45 (US 15, UAE 20, Qatar three, Oman three, Kuwait three, and Saudi Arabia  one);  Highlands Coffee 248 (Vietnam  222, Philippines  32);  Pho 24  29 (Vietnam 13, Indonesia 15 and Korea one); Hard Rock Cafe eight (Vietnam two, Hong Kong three, Macau three). 

The JFC Group’s worldwide store network reached 3,823 stores.