In a disclosure to the Philippine Stock Exchange, Jollibee said the purchase of the 50 percent stake involved a restructuring of advances made by the firm and Delifrance Asia Ltd. amounting to P130 million into equity.
Jollibee said good sales from the brand encouraged the firm to buy out its partner.
"Delifrance is a good brand and its sales in the Philippines has been growing remarkably in the past 24 months," said Jollibee chairman and CEO Tony Tan Caktiong.
As of end-June 2006, there were a total of 39 Delifrance stores.
Jollibee is popular for its hamburgers and fried chicken. It also sells Chinese meals through Chowking outlets, and pasta and sandwiches at Greenwich and Delifrance stores. Its operations also include Japanese specialty restaurant (Yonghe King) and cake and bakery chain Red Ribbon.
The Jollibee group has been expanding its business through acquisition and store expansion of existing businesses. In October 2005, Jollibee acquired 100 percent of Red Ribbon Bakeshop for P1.8 billion. In March 2004, it acquired 85 percent of the Yonghe King business in the People’s Republic of China for $11.5 million.
As of June 30 this year, Jollibee’s worldwide store network reached 1,477 — Jollibee 550, Chowking 341, Greenwich 241, Red
Ribbon 144, and DeliFrance 39; abroad, the group had a total of 162 stores — Yonghe King 104 in the People’s Republic of China; in the United States Jollibee 10, Red Ribbon 18, and Chowking 10; in Dubai in the United Arab Emirates — Chowking 5, in Indonesia — Chowking 3 and in other parts of Asia (12).
Jollibee has set aside P1.5 billion this year for the continued expansion of its operations in both local and international markets, including a commissary in the United States and the establishment of 100 to 120 new stores across all its brands.
While the Philippines continues to be its main market, the group also intends to further grow its business in the US and China. It is building its first Jollibee store, the group’s flagship brand, in China.
The group is also exploring opportunities in India and Jakarta, Indonesia.
It also set to open its first Red Ribbon branch in the East Coast, particularly in New Jersey.
The group continues to "keep its ears open" for possible acquisitions. It is considering acquiring two to three new fastfood chains in China, particularly in the noodle and bakeshop businesses.
Amid a very challenging business environment, Jollibee reported a 17.6 percent growth in its first half net profit to P1.05 billion from only P894.58 million a year earlier, mainly due to the opening of new stores and the additional earnings contribution from Red Ribbon.
Revenues rose 14.7 percent to P15.97 billion in the first half. Red Ribbon contributed almost P1.4 billion or 7 percent to system-wide sales, a measure of all sales both from company-owned and franchised stores.