MANILA, Philippines – The country's largest food service firm Jollibee Foods Corporation (JFC) said its profit for the first half of the year jumped by 17 percent on the back of continued sales growth in all its brands.
JFC’s net income attributable to equity holders of the parent surged to P2.5 billion in the first six months of 2014 from the P2.1 billion posted in the same period last year.
In the first half of the year, JFC’s system-wide sales increased by 14.3 percent to P57 billion compared to the P50 billion sales in the same period in 2013.
JFC chief executive officer Ernesto Tanmantiong attributed the robust sales to continued product improvement, new products, more targeted marketing programs, and renovated stores.
“The organization is strongly committed to make our brands and products even better in the future. In the next months and years, we will drive for an acceleration of our store opening in the Philippines and abroad, including our businesses in China and Vietnam,” he said in a disclosure to the stock exchange.
The Jollibee group opened a total of 108 new stores in the first semester, 84 of which are in the Philippines while 24 others are overseas.
Sustained growth seen in 2nd half
Jollibee’s Metro Manila operations were recently affected after ChickenJoy and other items on its menu were unavailable in some branches in Metro Manila due to delivery issues.
Because of the issue, the fast food chain was forced to temporarily closed 72 of its stores, representing 3.2 percent of its store network nationwide of 2,244 and the reduction in the menu of many stores.
The effects of the store closures on Jollibee's financials would be seen in the third quarter report.
"We are very sorry for the disappointment and inconvenience caused by not finding favorite products in some of our stores and by the temporary closure of some of our stores. We are doing our best to restore the availability of our products in our stores as soon as possible. We have taken immediate measures to augment our delivery capability to our stores,” Tanmantiong said.
“We have also engaged international experts and invested in additional resources to fix the systems upgrade problem at the soonest possible time. We look forward to a sustained growth of the business,” he added.
Tanmantiong also said that despite the product availability issues, JFC expects to sustain sales growth in the second half of 2014 by the same rate of growth as in the first half of the year.
JFC earlier explained that the temporary slowdown in sales order taking, product loading and dispatch of transportation was due to the migration to new systems that started on August 1.
The Jollibee group assured its customers that it has sufficient raw materials, finished products and product capacity to meet consumer demand.
As of June 30, 2014, JFC has 2,244 restaurants in the country and 589 stores abroad.
In the Philippines, JFC operates under the brands Jollibee, Chowking, Red Ribbon, Greenwich, Mang Inasal, and Burger King.