With 340 new stores, Jollibee's net income surges by 24.6%

MANILA, Philippines – Homegrown fastfood giant Jollibee Foods Corporation saw its net income in 2016 surge by 24.6% to P6.14 billion in 2016, from P4.93 billion in 2015, after it registered its highest number of new stores last year.

Jollibee said in a disclosure to the local bourse that it opened a total of 340 stores last year, of which 243 are in the Philippines, while 97 are abroad including China, the US, Southeast Asia, and Middle East.

This is the highest number of store opening in a single year in the history of the fastfood firm.

As a result 2016 systemwide sales, a measure of all sales to customers both from company-owned and franchised stores grew by 14.1% to P149.1 billion in 2016, from P130.7 billion in 2015.

Revenues also jumped 13.1% to P113.9 billion in 2016 from P100.7 billion a year ago.

To sustain the company's continued growth, Jollibee said it will spend P14 billion in capital expenditures for 2017.

Of the P14-billion programmed spending, P7.6 billion will be for store expansion and renovation, while P5.6 billion will be for commissary investment.

"In 2016, we opened the most number of new stores in JFC's history," Jollibee chief executive Ernesto Tanmantiong said in a statement.

"This was made possible by improving the return on investment on our stores and by increasing our organization's capability to build and open more stores in better locations and with better quality than ever before on a worldwide basis," he added.

"We look forward to continued strong profitable growth in the years ahead in the Philippines and abroad," Tanmantiong added.

For the 4th quarter alone, Jollibee registered a 63.7% growth in net income to P1.75 billion from P1.07 billion booked in the same quarter in 2015.

Same store sales growth pertains to restaurants that were already open for at least 15 months. It excludes sales growth from new store opening.

Fourth quarter system-wide sales in the Philippines grew 14%, while foreign business grew 14.5% with China growing by 6%, US by 19.4% and Southeast Asia and Middle East by 33%.

This was the foreign business' highest quarterly sales growth in 2016 and was driven by the recovery in China, particularly the Yonghe King brand.

As of end 2016, Jollibee has a total network of 2,642 stores in the Philippines and 611 overseas.

Share price of Jollibee on Tuesday, February closed lower by P1 to P206 per share. – Rappler.com