Jollibee Q2 net profit falls slightly due to forex losses


Posted at Aug 16 2010 04:39 PM | Updated as of Aug 17 2010 12:39 AM

MANILA, Philippines - Fastfood chain Jollibee Foods Corp.'s net income in the second quarter slightly fell to P743 million from P746 million last year due largely to foreign exchange losses.

Jollibee which has several outlets abroad and has acquired several foreign fastfood stores, holds fixed income investments in various currencies in anticipation of its investments abroad and payment of its obligations denominated in foreign currencies.

For the first half, Jollibee's net profit rose by 9.6% from a year earlier to P1.433 billion.

Revenues for the first 6 months grew by 10.5% to P25.639 billion, with the second quarter accounting for P13.357 billion, driven by higher sales.

System-wide sales, a measure of all sales by both company-owned and franchised stores, increased by 9.5% to P33.91 billion in the first half, of which P17.571 billion were made in the second quarter.

From January to June, the Jollibee Group opened 88 stores, 45 of them in the Philippines and 43 abroad, mostly in China with 30 new stores.

Sales in the Philippines grew by 9.4% in the second quarter, while those abroad were paced by China which led at 22.5%, Vietnam by 99.3% and Middle East, by 33%. Sales from foreign operations made up 17% of the group's worldwide sales from April to June.