Jollibee sees major Growth in the 4th Quarter of 2021, CEO optimistic for 2022

The Jollibee Food Corporation has reportedly reversed the losses incurred during the COVID-19 pandemic as mobility restrictions loosen and consumer spending rises. JFC’s net income in 2021 stands at P5.9 billion whereas, in 2020, the company saw a P11.5 billion loss. JFC was among the country’s publicly listed companies that experienced the sharpest losses in 2020 as COVID-19 wreaked havoc on the economy.

Last year, the company’s largest gains came in the fourth quarter as earnings grew by 59.6% or P2.03 billion. System-wide sales, which is a measure of all sales to consumers, grew 20% to P211.7 billion, while revenues jumped 18.7% to P153.5 billion. It is noted that the main drivers for this growth were sales from the Philippine and North American branches, as well as sales from Coffee Bean and Smashburger.

CEO Ernesto Tanmantiong stated that JFC’s international sales equaled their pre-COVID number in the 4th quarter. However, the number was still 22.6% lower when compared to the end of 2019.

“We look forward to continuing strong recovery of the business in 2022 particularly if the restrictions in the Philippines are fully lifted, coupled with increased consumer spending during this election year,” Tanmantiong said.

In 2022, JFC has allotted P9 billion for capital expenditures, a 50% increase as compared to the P6 billion spent in 2021.

“Beyond 2022, our outlook for business growth is even brighter. We see very strong expansion in different parts of our business particularly those in North America, China, Southeast Asia, and Europe, while we expect the Philippines to sustain its healthy profitable growth,” Tanmantiong added.

Last year, the conglomerate opened 398 new Jollibees worldwide, 85 in the Philippines, 108 in China, 38 in North America, and 29 in Europe, the Middle East, and Africa. Additionally, SuperFoods and Coffee Bean opened 72 and 66 stores, respectively.

Lastly, the company’s financial position improved drastically due to the increase in operating cash flow, the issuance of P12 billion of preferred shares in October 2021, and the repayment of $203.5 million of bonds plus other debts.

Source: Rappler