Jollibee Foods Corp. reported profits of P6.33 billion for 2019, a 14.4 percent drop from the P7.04 billion posted in 2018 mainly due to the financing cost of the acquisition of a foreign brand.
Revenues last year grew 11.4 percent to P176.64 billion, from P161.2 billion the prior year.
System wide sales increased 14.9 percent to P243.79 billion, from P212.18 billion the previous year.
Jollibee said in the fourth quarter alone, sales jumped 23.2 percent to P52.43 billion from P44.56 billion, including the sales of Coffee Bean and Tea Leaf (CBTL).
Without CBTL, it said system wide sales for the fourth quarter grew by 9.3 percent.
“Global same store sales grew by 4.0 percent representing a marked improvement versus third quarter of 2.5 percent. Philippine business fourth quarter same store sales growth reached 4.6 percent against a third quarter growth rate of 3.3 percent,” the company said.
Practically all brands in the Philippines improved their same store sales growth between third quarter and fourth quarter led by Jollibee, Red Ribbon, Greenwich and Burger King, it added.
“Same store sales growth in the Philippines was driven by the continued growth in volume of customer visits in the stores compared to a year ago and strong growth in delivery business for all brands. Panda Express which opened its first store in December 2019 has been generating sales above expectation,” Jollibee said.
Foreign business meanwhile grew by 59.3 percent, with CBTL accounting for 53.8 percent; new stores, 7.3 percent; and same store sales growth, 2 percent. However, the growth was partly offset by a 5.3 percent downward pull in currency exchange rates.
“North America business grew by 128.3 percent, including CBTL (123.9 percent in Php terms; ex-CBTL 4.0 percent), EMEAA (Europe, Middle East and Asia) business by 17.6 percent (12.0 percent in peso), and the China business by 8.0 percent (1.6 percent in peso),” Jollibee said.
It added that growth in same store sales of the foreign business was also largely driven by increase in customer visits in the stores and strong growth in delivery business.
“The year 2019 was a very tough year for Jollibee, but the resilience and determination of our people have kept driving the business forward. We are very encouraged by the continued rise in customer visits to our stores, the strong growth in our store network with sustained healthy return on invested capital, the strong momentum in the delivery business, the recovery of the Red Ribbon product supply in the Philippines and the very good indicators of recovery of the Smashburger business in the United States,” said Ernesto Tanmantiong, Jollibee chief executive officer.
“We look forward to a much stronger sales and profit performance in 2020 and the years ahead even as we consolidate the financial performance of CBTL into our financial results,” he added.
Jollibee opened 497 stores in 2019: 273 in the Philippines and 224 abroad. It ended 2019 with 5.971 stores, including CBTL’s 1,173 stores. Total store network increased by 32.1 percent versus December 31, 2018.
For 2020, Jollibee plans to open 600 stores, about 250-300 of which will be in the Philippines and 300-350 abroad. The returns on investment of Jollibee’s new stores abroad are at least as profitable as those in the Philippines.
2020 may mark the first time in Jollibee’s history when the international business generates greater organic store expansion than the Philippine business.
