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.

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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