Jollibee turns around with strong Q2 earnings

Published August 11, 2021, 3:49 PM

by James A. Loyola

Jollibee Foods Corporation (JFC), one of Asia’s largest food service companies, reported a 109.4 percent jump in net income for the first half of 2021 to P1.13 billion from a net loss of P11.96 billion in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said system wide sales, a measure of all sales to consumers, both from company-owned and franchised stores improved 14.5 percent to P98.3 billion in the first semester of the year from P85.83 billion during the comparative period of 2020.

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Revenues grew 13.7 percent higher at P71.37 billion in the first half of 2021 from P62.76 billion in the same period last year.

Systemwide sales increased by 64.7 percent to P50.5 billion in the second quarter of 2021 compared to the same quarter last year when the Covid-19 pandemic brought its most adverse impact on the business. Revenues grew by 57.2 percent to P36.69 billion.

Same store sales in the Philippine business increased by 48.0 percent in the second quarter of 2021 compared to the same quarter last year while the international business grew by 28.4 percent.

China achieved a growth of 48.0 percent, North America 27.7 percent, Europe/Middle East/other parts of Asia 21.2 percent, The Coffee Bean & Tea Leaf 27.9 percent, SuperFoods, mostly in Vietnam was lower by 8.1 percent, for a worldwide same store sales growth of 38.4 percent.

JFC generated a consolidated operating income of P1.4 billion in the second quarter of 2021 representing a marked recovery from the operating loss of P5.4 billion suffered in the same period in 2020 when sales declined quite significantly due to the temporary closure of a high number of stores and decline in sales of stores remaining open due to lockdowns and related restrictions imposed to control the spread of the Covid-19 virus.

Attributable net income reached P1.0 billion compared with a P10.3 billion loss in the second quarter of 2020 which included an expense provision for Business Transformation of P6.2 billion.

All regions achieved significant profit and operating cash flow improvement versus year ago levels. Gross profit margins, general and administrative expenses and operating profit margins also showed marked improvement.

The impact of the pandemic on JFC’s businesses around the world in the second quarter of 2021 was mixed as sales in the United States continued to improve with sales per store already reaching well above pre-pandemic levels.

In the southern part of China, sales growth slowed due to the reimposition of government restrictions while sales in the eastern and northern regions continued to grow above pre-pandemic levels.

Sales growth reversed in Southeast Asia particularly those in Vietnam, Philippines, Singapore and Malaysia while those in the Middle East and Europe continued to improve.

Off-premise sales which include those from delivery, take-out and drive-through channels continued to help drive sales growth in both the Philippines and international markets.

 
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