Fast food chain operator Jollibee Foods Corp. (JFC) aims to triple its net income over the next five years as it aggressively expands its brands overseas.
JFC said in a disclosure to the stock exchange Tuesday it would scale up its business by opening more Jollibee stores abroad, while continuing to grow its market leadership in the domestic market.
It said it would also expand its coffee and tea business, build more stores in China and accelerate its digital transformation to increase operational efficiency and improve customer experience and revenue management.
“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,” said JFC chief executive Ernesto Tanmantiong.
JFC said it allotted P23 billion for 2024 capital expenditures as it intends to open 700 to 750 owned and franchised stores.
JFC booked a net income of P8.8 billion in 2023, up 16 percent from a year ago on the back of double-digit growth in revenues and new store openings.
System-wide sales (SWS), a measure of all sales to consumers both from company owned and franchised stores grew 16.3 percent year-on-year in 2023 to P345.3 billion.
Revenues hit an all-time high of P2441 billion, while operating profit surged 45 percent to P14.4 billion from P9.94 billion in 2022.
“Our full-year 2023 results reflect the strength of our execution and resiliency of our brands,” Tanmantiong said.
The Philippine business, which accounted for 61 percent of the group’s revenues, delivered a 17.6-percent growth in SWS, while international business grew 14.4 percent.
JFC opened 658 stores last year, above its target of 550 to 600 new stores. It ended 2023 with 6,885 stores worldwide.
“2023 was another remarkable year, our strong execution drove sales and operating profit growth at the higher end of our guidance. We generated significant cash flow putting us in an excellent position to execute our growth strategy for 2024,” JFC chief finance officer Richard Shin said.
“While we continue to open new stores this year, we remain focused on managing elements within our control, including driving top line through omni channels, effective cost management and operational efficiency. This gives us the confidence that we will continue to deliver revenue and profit growth, as well as margin and operating cash flow expansion in 2024,” he said.
