Metro Manila, Philippines, February 9, 2022 โ Jollibee Foods Corporation (PSE: JFC) โ Financial Results for the Fourth Quarter and Year Ended December 31, 2021
Following are the highlights of the financial results of operations of Jollibee Foods Corporation (JFC) and its subsidiaries for the fourth quarter and year ended December 31, 2021, based on its Unaudited Consolidated Financial Statements:
Jollibee Foods Corporation (JFC), one of Asiaโs largest food service companies disclosed today that its operating income for the fourth quarter reached Php2.5 billion, reversing its operating loss for the fourth quarter of 2020 and generating a 63.3% growth over its fourth quarter 2019 operating profit of Php1.5 billion. For the year 2021, JFCโs operating income amounted to Php6.3 billion, about the same level in 2019 or pre-pandemic operating income of Php6.5 billion.
System wide sales, a measure of all sales to consumers, both from company-owned and franchised stores increased by 25.2% for the fourth quarter and 20.3% for the year 2021 compared to the same periods last year. Revenues grew by 22.8% and 18.7% for the fourth quarter and for the year 2021, respectively. Same store sales of the Philippine business increased by 24.1% in the fourth quarter of 2021 compared to the same quarter last year while the international business grew by 9.6%. North America increased by +17.0%, Europe/Middle East and other parts of Asia (EMEAA) by +5.0%, and The Coffee Bean & Tea Leafยฎ (CBTL) by +29.3%. SuperFoods and the China businesses declined by 23.2% and 8.1%, respectively primarily due to COVID19 related restrictions imposed on some parts of Vietnam and China. Global same store sales rose by18.4% versus the fourth quarter of 2020.
JFC Chief Executive Officer, Mr. Ernesto Tanmantiong gave the following statement: โJFCโs system wide sales in its international business in the fourth quarter had equaled the sales in the same period before the outbreak of the pandemic. System wide sales in the Philippines in the fourth quarter were still 22.6% lower than those in the same period in 2019. However, despite this, the Philippine businessโ operating income in Q4 2021 had already equaled those in 2019โs. 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.
JFC had allotted Php9.0 billion for capital expenditures for new stores in 2022, representing a 50% increase compared with Php6.0 billion spent in 2021. We are prepared to make this level of investments if the economies fully re-open and sales growth remains strong. 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.โ
JFC generated a net income attributable to equity holders of the parent company of Php3.2 billion in the fourth quarter of 2021, higher by 59.6% and 3.7% compared to JFCโs net income for the fourth quarter of 2020 and 2019, respectively. For the year 2021, net income attributable to equity holders of the parent company amounted to Php5.9 billion compared to the 2020 net loss of Php11.5 billion and the 2019 net income of Php7.3 billion. The operating income generated in Q4 2021 of Php2.5 billion was higher by 63.3% than that in Q4 2019
and a significant turn-around from a loss of Php2.9 billion in 2020.
JFC Chief Financial Officer, Mr. Ysmael V. Baysa gave the following statement: โJFC achieved a profit objective of generating an operating income in 2021 that reached pre-pandemic level despite its system wide sales still being behind by 13.2%. This was the result of our Business Transformation Program implemented in 2020 and the continuing strong cost and profit management in 2021. By business units, the key drivers were the Philippines, with Q4 operating income equaling that of Q4 2019, Smashburger, with losses in Q4 2019 being
reduced by 80% and CBTL which turned its losses into profit in Q4 and total year 2021. CBTL is now a profitable business.โ
Gross profit margin for the fourth quarter improved from 2019 level of 16.9% to 18.3% in 2021 while operating income margin increased from 2.9% in Q4 2019 to 5.6%. The improvement resulted from the increase in the contribution of international sales and coffee sales which have higher gross profit margins than those in the Philippines and the significant profit improvement of Smashburger and CBTL. Selling price adjustments made in different parts of the world during the year also contributed to the improvement in gross profit margin. Absolute general and administrative expenses declined by 20.3% versus 2019, also made possible by cost reduction from the business transformation program.
JFCโs financial position likewise improved significantly versus a year ago due to the significant increase in its operating cash flows, the issuance of Php12.0 billion of Preferred Shares in October 2021 and the repayment of USD203.5 million of bonds plus other debts even as it invests significantly in capital expenditures and new acquisitions which included the Yoshinoya joint venture in the Philippines and increase in ownership of Tim Ho Wan. JFC also announced in October 2021 that it will acquire 51% ownership of ownership in Milkshop
International Co. Ltd.
The JFC Group opened 398 new stores in 2021: 85 in the Philippines, 108 in China, 38 in North America and 29 in EMEAA. SuperFoods and CBTL opened 72 and 66 stores, respectively. A total of 302 stores were permanently closed during the quarter: 86 in the Philippines and 216 abroad. On December 7, 2021, the Board of Directors of JFC approved the declaration of regular cash dividends of Php8.20525 per share for Series A preferred shares and Php10.60125 per share for Series B preferred shares. The cash dividends were paid on January 14, 2022.
For 2022, JFC had allotted Php17.8 billion in capital expenditures, significantly higher than the Php7.8 billion spending in 2021. Php10.0 billion was set for new stores and renovations of existing stores. JFC had planned for opening 500 new stores in 2022, after opening 398 in 2021. The balance of Php7.8 billion capital expenditures will be mostly for supply chain and business technology investments. JFC plans to build a new commissary facility in Cebu in order to support its expansion plans in Visayas and Mindanao. These capital expenditures will be primarily funded by cash generated from operations, bank loans and excess cash from the remaining proceeds from the bond issuances.
JFC is one of Asiaโs largest food service companies with 17 brands operating in 34 countries. Its total store network reached 5,924 outlets as at end of December 2021, with 3,220 stores in the Philippines and 2,704 abroad. Its largest brands in terms of number of restaurant outlets are Jollibee with 1,520, CBTL with 1,048, Chowking with 604, Mang Inasal with 578, Red Ribbon 553, Highlands Coffee with 483, Yonghe King 394, Greenwich 269 and Smashburger 245.