Daily Tribune
Jollibee Foods Corporation which operates the largest fast food chain brand in the Philippines, saw a 16 percent growth in its net earnings, hitting P8.8 billion in 2023 even as gross revenues increased 15.2 percent, setting a new whopping record P244.1 billion from an all-time high of P343.32 billion in sales. Established in 1975, Jollibee today operates a network of over 1,700 stores in 17 countries.
Photograph courtesy of Jollibee
Following a remarkable financial performance last year, homegrown fastfood giant Jollibee Foods Corp., or JFC, is confident of sustaining its profit growth, along with healthy margins and operating cash flow this year.
JFC CEO Ernesto Tanmantiong announced on Tuesday that the company aims to triple its profits in the next five years, relying on the strength of the Jollibee brand and its coffee and tea businesses.
“Our strategies combined with a portfolio of strong and valuable brands and the support of our talented global team give me the confidence that we will be able to achieve our goal to triple our value (in terms of net income attributable to equity holders of the Parent Company) in five years,” Tanmantiong said.
Substantial net earnings growth
In 2023, JFC saw a substantial 16 percent growth in its net earnings, reaching P8.8 billion in 2023 due to a combination of robust sales and stringent cost control measures.
Meanwhile, total revenues experienced a 15.2 percent increase, setting a new record of P244.1 billion.
Systemwide sales, on the other hand, witnessed an all-time high of P343.32 billion, representing a 16.3 percent surge.
JFC has set a target for 2024, projecting that full-year system-wide sales growth will be within the range between 10 to 14 percent. The projection includes same-store sales growth of 5 to 7 percent and an increase in the store network of 7 and 8 percent.
The company expects operating profit growth to be in the range of 10 to 15 percent.
Guidance exceeded
In 2023, JFC exceeded its guidance by opening 658 stores, resulting in a 6.3 percent growth in its store network to 6,885 stores by the year-end.
For the year, JFC plans to open around 700 to 750 owned and franchised stores and expects capital expenditures to be in the range of P20 to P23 billion.
As of the end of 2023, JFC’s store network increased by 6.3 percent compared to a year ago. It operated 6,885 stores worldwide: 3,339 in the Philippines and 3,546 overseas.
Its largest brands by store outlets worldwide are Jollibee with 1,660; CBTL with 1,164; Highlands Coffee with 779; Chowking with 613; and Mang Inasal with 573 branches.
