JFC's net profits jump 17.2% to USD 35.73m

Thanks to robust growth in Philippine operations.

Strong growth in its Philippine business has lifted Jollibee Foods Corporation's (JFC) earnings in Q2, as Asia's largest food operator's net attributable profits spiked 17.2% YoY to PHP 1.65b (roughly USD 35.73m) during the quarter.

According to the company's disclosure to the Philippine Stock exchange, the spike in earnings is thanks to store expansion and renovation, low inflation rate, as well as election-related spending in the Philippines.

System-wide retail sales for the quarter jumped 15.1% YoY to PHP37.1b (USD 800.54m) from PHP 32.25b (USD 695.8m) in 2Q15. Revenue rose 14% YoY to PHP 28.323b (USD 611.13m) from P24.853b (USD 536.26m).

On the other hand, the company's operations outside of the Philippines showed mixed results.

Meanwhile, business in Southeast Asia leaped 37%. This was led by Singapore with 56%, and by Vietnam by 49% growth, while Middle East surged 17% and the United Stated by 11%. On the other hand, China sales slipped 5.7%.

JFC CEO Ernesto Tanmantiong revealed in a press statement that the pullback in China sales is due to competitive pressures face by its largest China brand, Yonghe King. This was partly mitigated, though, by robust performance from its two other brands, Hong Zhuang Yuan and San Ping Wang.

For the half-year, the company's net income grew 17.5% YoY to PHP 3.054b (USD 65.9m) while system-wide sales jumped 14.9% YoY to PHP 71.45b (USD 1.54b).

As of end-June, JFC operated 3,183 restaurants across the globe. Of this, 2,528 are in the Philippines.