Metro Manila (CNN Philippines, February 10) — Homegrown fast-food giant Jollibee Foods Corp. (JFC) is more optimistic this year as it plans to spend ₱17.8 billion for capital spending, the bulk of which will finance new stores, after finding its way back to profitability in 2021.
“We look forward to continuing strong recovery of the business in 2022 particularly if the restrictions in the Philippines are fully lifted, coupled with increased consumer spending during this election year,” JFC chief executive officer Ernesto Tanmantiong was quoted as saying in a disclosure Thursday.
The company reported that its net income attributable to equity holders of the parent reached ₱5.9 billion in 2021 against the ₱11.5 losses it booked in 2020.
The figure, however, was still far compared to its ₱7.3 billion profit in 2019.
Meanwhile, its fourth quarter results alone recorded a robust performance, with net income hitting ₱3.2 billion, even exceeding its 2019 pre-pandemic level by 3.7%.
Systemwide sales — a measure of all sales to consumers, both from company-owned and franchised stores — jumped by 20.3% for 2021 to ₱211.7 billion versus the ₱175.9 billion in 2020.
Same store sales of the Philippine business increased by 24.1% in the fourth quarter in 2021 compared to a year ago, while the international business grew by 9.6%.
Given Jollibee’s bullish outlook on its operations this 2022, the group has allotted ₱17.8 billion for capital expenditures — higher than the ₱7.8 billion last year.
About ₱10 billion has been set aside for new stores and renovations of existing stores. Jollibee said it targets to open 500 new stores this year.
“We are prepared to make this level of investments if the economies fully re-open and sales growth remains strong. Beyond 2022, our outlook for business growth is even brighter,” Tanmantiong said.
“We see very strong expansion in different parts of our business, particularly those in North America, China, Southeast Asia and Europe while we expect the Philippines to sustain its healthy profitable growth,” the executive added.
