Jollibee H1profit jumps 350%, Q2 sales top pre-pandemic level

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Jollibee Foods Corp. Billionaire Tony Tan Caktiong saw first-half profits rise more than 350% as COVID-19 fears eased, pushing second-quarter sales above pre-pandemic levels.

The fast-food giant, which also owns Mang Inasal and coffeehouse chain CBTL, also weathered cost pressures from rising commodity prices, with margins improving in the second quarter.

From January to June, net income rose to 5.1 billion pesos from 1.12 billion pesos, while second-quarter profits jumped nearly 186% to 2.79 billion pesos.

System-wide sales in the first half rose 35.4 percent to 133.12 billion pesos, while second-quarter sales rose nearly 45 percent to 73.15 billion pesos.

“We are pleased with our strong revenue growth driven by our Philippines business which delivered better than expected second quarter sales and returned to pre-pandemic sales levels,” the CEO said. of Jollibee, Ernesto Tanmantiong, in a statement.

“We are encouraged to see further improvement in restaurant sales while maintaining growth in our delivery business,” he added.

Tanmantiong said sales in the Philippines, North America, Europe and the Middle East contributed to the sales growth, while revenue in China was hit by strict pandemic lockdowns.

[O]Our business in China saw a double-digit decline in sales as our restaurants, particularly in Shanghai, were temporarily closed for most of the quarter due to increased Covid-related restrictions,” he said.

“We are very confident about the strong recovery of our China business in the coming months, the acceleration of sales and earnings growth from our other overseas businesses and the continued strong growth of our business. in the Philippines,” Tanmantiong added.

Jollibee’s chief financial officer, Richard Shin, said margins were protected on “effective pricing actions and operational efficiencies.”

“Gross profit margin climbed to 17.9% in the second quarter of 2022,” he said.

This is despite a 2.2% increase in some expenses due to “cost pressures on raw materials and rising freight”.

“Total expenses, which include general and administrative expenses as well as advertising and promotions, grew at a slower rate compared to total revenue,” Shin said.

Jollibee opened 230 new stores in the first half. The breakdown was 50 in the Philippines, 38 in China, 16 in North America, and 18 in Europe, the Middle East and Africa. SuperFoods, CBTL and Milksha opened 47, 52 and 9 stores respectively.

Meanwhile, Jollibee closed a total of 130 stores during the period: 31 in the Philippines and 99 overseas. At the end of June, it had 6,297 stores worldwide: 3,239 in the Philippines and 3,058 internationally.

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