Jollibee posts P5.9 billion net income in 2021

MANILA, Philippines — Jollibee Foods Corp. (JFC), one of Asia’s largest food service companies, reported a net income of P5.9 billion last year, a reversal of the P11.5 billion loss recorded in 2020.

In the fourth quarter last year, JFC posted a net income of P3.24 billion, up 59.6 percent from P2.03 billion in the same period in 2020.

JFC’s operating income amounted to P6.3 billion, about the same level in 2019.

For 2022, JFC is pouring in P17.8 billion for capital expenditures, significantly higher than the P7.8 billion set aside last year.

Of the amount, P10 billion will be spent for new stores and renovations of existing stores while the balance of P7.8 billion will be mostly for supply chain and business technology investments.

JFC plans to build a new commissary facility in Cebu in order to support its expansion plans in Visayas and Mindanao. It is targeting to open 500 new stores in 2022, after opening 398 a year ago.

Systemwide sales rose by 25.2 percent to  P62 billion in the fourth quarter of 2021, bringing full-year system wide sales to P211.7 billion, up by 20.3 percent from P176 billion in 2020.

Same store sales of the Philippine business increased by 24.1 percent in the fourth quarter while the international business grew 9.6 percent.

JFC chief executive officer Ernesto Tanmantiong said JFC’s system wide sales in its international business in the fourth quarter had equaled the sales in the same period before the outbreak of the pandemic.

Systemwide sales in the Philippines in the fourth quarter of 2021 were still 22.6 percent lower than those in the same period in 2019. However, despite this, the Philippine business’ operating income in the fourth quarter of 2021 had already equaled those in 2019’s, he said.

“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,” Tanmantiong said.

JFC chief financial officer Ysmael Baysa said by business units, the key drivers were the Philippines, with fourth quarter 2021 operating income equaling that of fourth quarter 2019, Smashburger, with losses in the fourth quarter of 2019 being reduced by 80 percent and CBTL which turned its losses into profit in 2021.

“CBTL is now a profitable business,” Baysa said.

The JFC Group opened 398 new stores in 2021: 85 in the Philippines, 108 in China, 38 in North America and 29 in EMEAA. SuperFoods and CBTL opened 72 and 66 stores, respectively. A total of 302 stores were permanently closed during the quarter: 86 in the Philippines and 216 abroad.