Jollibee Foods Corp. Posts ₱49 Million Net Income in Q1 Earnings Report

Jollibee Foods Corp released its earnings report on Wednesday for the first quarter of 2021. It posted a net income amounting to ₱49 million, overturning a ₱1.95 billion net loss year-on-year.

The fast-food giant’s operating income reached ₱1.5 billion despite systemwide sales lowering to ₱47.48 billion, or a 13.4% decrease.

Philippines sales slumped by 21.3% as localized lockdowns were implemented in Metro Manila and nearby provinces. By end-March, temporarily closed chains went up to 6%, an increase of 4 percentage points.

Overseas, sales are slowly returning to pre-pandemic levels after rising by 1.3%. Store sales in Jollibee’s China market grew by 47.8%, while North America escalated by 14.3%. The company attributes its recovery in these regions to faster vaccination rollouts and more sophisticated government assistance.

“Our profit and cash flows recovered strongly versus a year ago, reflecting the successful execution of our business transformation program. Practically every cost item in our company, from stores to commissaries to support group offices, decreased far more than our sales decline,” said Jollibee CEO Ernesto Tanmantiong.

Jollibee’s deferred tax assets were reduced by ₱629 million, largely due to the lowered corporate income tax under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The company’s recovery program entailed shutting down 486 stores globally and adjusting selling prices to offset the impact of inflation.

It opened 79 new stores worldwide during the first quarter, 19 of which are in the Philippines. On the other hand, 76 stores were permanently shut down, 58 of which are abroad.

Jollibee now operates 5,827 restaurants, including its other brands. In the Philippines, some of these include Chowking, Red Ribbon, and Mang Inasal. Overseas, it operates Tim Ho Wan, Coffee Bean & Tea Leaf, and Yonghe King.

Source: Rappler