Jollibee profit flat at P3.2 B

MANILA, Philippines - Fastfood giant Jollibee Foods Corp. said its 2011 net earnings was flat at P3.2 billion as higher costs of raw materials offset the rise in sales.

In a financial report filed with securities regulators, Jollibee said system-wide sales, a measure of all sales to consumers both from company-owned and franchised stores, climbed 17 percent to P82.17 billion. Revenues expanded by 17.9 percent to P62.9 billion while operating income improved 10.3 percent to P3.97 billion.

In the fourth quarter of 2011, Jollibee’s net profit rose 10 percent to P1.16 billion as system-wide sales increased 18 percent to P22.97 billion. Revenues likewise went up 21.2 percent to P18.12 billion.

Sales in the Philippines grew 17.8 percent, with new acquisitions Mang Inasal and Burger King contributing a combined 9.2 percent to total sales growth.

International operations, on the other hand, registered a 19 percent rise in sales led by China with a growth of 27.5 percent, and Southeast Asia and the Middle East with 23.3 percent.

Last year, Jollibee spent P6 billion for new store openings and supply chain facilities as well as acquisition of new businesses. Funding was sourced from internally generated cash (P4.6 billion) and bank borrowings (P1.4 billion).

The Jollibee Group opened a total of 260 new stores in 2011, of which 167 were in the Philippines led by Mang Inasal with 86 new stores and Jollibee with 40. These new branches brought the group’s total network in the Philippines to 2,001.

Overseas, the group opened 93 new stores led by Yonghe King in China with 70 and Jollibee in Vietnam with 11, to end the year with a total of 468 branches.

As of end-December 2011, the group had a total of 2,469 stores worldwide.

During the year, Jollibee built and started operating the Jollibee Food Processing Center in Anhui province, China and its Research & Development Center in Shanghai, and began constructing its distribution center in Manila.