Jollibee to double spending as profit exceeds pre-pandemic level
Manila
JOLLIBEE Foods is allocating 17.8 billion pesos (S$466.2 million) in capital spending this year, pursuing an aggressive expansion after profit in the fourth quarter of 2021 exceeded 2019 level.
The strong recovery could continue in 2022 "particularly if the restrictions in the Philippines are fully lifted, coupled with increased consumer spending during this election year", chief executive officer Ernesto Tanmantiong said in a statement on Thursday (Feb 10).
Jollibee reported a net income of 3.2 billion pesos in the 3 months to December 2021, up 59.6 per cent year on year and exceeding by 3.7 per cent the level in the fourth quarter of 2019. Still, full-year profit and system-wide sales were behind pre-pandemic levels.
The company allotted 9 billion pesos to open new stores this year, up 50 per cent from what it spent in 2021. Jollibee is prepared to make such investments "if the economies fully re-open and sales growth remains strong", Tanmantiong said.
Jollibee, which has 17 brands in 34 countries, plans to add 500 new stores this year after opening 398 in 2021. It's also looking to build a new commissary facility in Cebu to support its expansion in Visayas and Mindanao.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Beyond 2022, its outlook for business growth is even brighter. The Philippine company that's known for dishes like fried chicken and sweet spaghetti is looking to expand in North America, China, South-east Asia and Europe. BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Morgan Stanley, Frasers settle UK lawsuit over US$1 billion margin call
Venture posts lower Q1 net profit of S$60.1 million on weaker demand
YHI International COO and subsidiary charged with alleged failure to ensure employee safety, causing death
India's markets regulator puts seven Adani companies on notice for violations
Singapore stocks end week in red; STI down 0.1%
UK's FTSE 100 hits record highs on Anglo-American boost