Jollibee reverses pandemic losses in 2021 as virus curbs ease

MANILA, Philippines — Jollibee Foods Corp. saw its net income reverse to gains last year as domestic and international sales improve amid looser restrictions worldwide that encouraged consumer spending.

In a disclosure to the Philippine Stock Exchange on Thursday, the fast-food giant reported its 2021 net income attributable to shareholders rose to P5.9 billion, reversing its P11.5 billion losses in 2020 but still falling behind its 2019 net income of P7.3 billion.

Operating profits likewise expanded as Jollibee noted a turnaround to P2.5 billion in the final quarter of 2021, rebounding from its P2.87 billion losses in the same period in 2020. This outpaced its fourth-quarter finish of P1.5 billion back in 2019.

"We look forward to continuing strong recovery of the business in 2022 particularly if the restrictions in the Philippines are fully lifted, coupled with increased consumer spending during this election year," said Ernesto Tanmantiong, company chief executive officer, said.

Broken down, system-wide sales, a measure of all sales to consumers from company-owned and franchised stores, increased 20.3% year-on-year to P211.72 billion in 2021. Revenues surged 18.7% on-year in the same period to P153.51 billion.

Same stores sales within its domestic segment swelled 24.1% year-on-year in the final quarter of 2021 while its international sales grew 9.6%. Likewise, global same-store sales leapt at an annualized rate of 18.4% in the fourth quarter.

However, Jollibee's SuperFoods Group and its businesses in China suffered declines due to large-scale pandemic curbs in those areas back in the fourth quarter last year. Still, earnings before interest, taxes, depreciation and amortization (EBITDA), another measure of financial health, fattened 376% annually to P23 billion last year.

Ending 2021 on a high note compelled Jollibee to allot higher capital expenditures this year at a total of P17.8 billion, 50% bigger than last year's spending plan. The company said P9 billion of that amount will be spent to build new stores in 2022 as it planned to open 500 new stores. The balance will be spent on investments in supply chain and business technology as well as funding a commissary facility in Cebu to support its expansion plan in Visayas and Mindanao.

Despite shuttering 302 stores permanently in the final quarter of 2021, Jollibee said it opened 398 new stores last year around the world, wherein 85 are located in the Philippines.

"We are prepared to make this level of investment if the economies fully re-open and sales growth remains strong. Beyond 2022, our outlook for business growth is even brighter. We see very strong expansion in different parts of our business particularly those in North America, China, Southeast Asia and Europe while we expect the Philippines to sustain its healthy profitable growth," Tanmationg said.

Shares in Jollibee finished trading on Thursday up 0.99% to P244 each.