Jollibee can't sustain revenue growth due to inflation

ABS-CBN News

Posted at Jun 27 2008 06:14 PM | Updated as of Jun 28 2008 02:14 AM

Fast-food chain operator Jollibee Foods Corp. (JFC) said Friday it would be hard to sustain revenue growth this year because of rising inflation.

JFC vice-president for corporate finance and chief finance officer Ysmael Baysa said that rising costs of fuel and basic commodities would put a dent on revenues and system-wide sales.

"We know what will happen in the next quarters. As of now, we are still growing well, but what will happen in the second semester we don't know because of the global situation. It is possible that we will not grow as much as 2007 but we will still grow," he said.

Last year, the group posted total revenues of P38.7 billion, up 14.1 percent from P33.9 billion in 2006.

Its system-wide sales, a measure of all sales both from company-owned and franchised stores, rose 14 percent to P51.6 billion year-on-year.

JFC runs the largest quick food service network in the country. As of April 30, 2008, it was operating a total of 1,469 stores in the Philippines and 194 stores overseas. Its popular brands include Jollibee, Chowking, Greenwich, Delifrance and Red Ribbon.