Jollibee Foods Corporation swings back to profitability in Q1
Sales from the Philippine business declined due to continued restrictions.
Jollibee Foods Corporation (JFC) was back in the black in the first quarter of the year after posting an PHP 49 million (approx. US$1.02 million) net income, reversing a PHP 1.95 billion net loss year-on-year.
Operating income was at PHP 1.5 billion in the said quarter, despite a decline in system-wide sales to PHP 47.48 million.
Sales from the Philippine business declined by 21.3%, attributed to continued restrictions to control the COVID 19 pandemic in Metro Manila and nearby provinces.
The conglomerate’s international business slightly increased by 1.3%, primarily due to a 47.8% same store sales jump in China and 14.3% in North America.
"Our profit and cash flows recovered strongly versus a year ago, reflecting the successful execution of our business transformation program. Practically every cost item in our company, from stores to commissaries to support group offices, decreased far more than our sales decline," Jollibee chief executive officer Ernesto Tanmantiong said in a disclosure to the local stock exchange.
486 stores were permanently closed as a result of the said program. Selling price adjustments were also implemented in the fourth quarter of 2020 and the first quarter of 2021 to partly offset rising inflation.
As of 31 March, JFC is operating 5,827 stores worldwide, 3,218 of which are in the Philippines. These include their namesake chicken brand, Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, PHO24, and Panda Express.
Internationally, it operates Yonghe King, Hong Zhuang Yuan, Dunkin' Donuts, Tim Ho Wan, Highlands Coffee, SuperFoods, CBTL, Smashburger, and Hard Rock Cafe.