Higher sales boost Jollibee's Q1 income by 23%

MANILA, Philippines - Homegrown fast food giant Jollibee Foods Corp. reported a net income of P691 million for the first quarter of 2010, up 23% from last year's P562 million.

In a disclosure to the Philippine Stock Exchange, Jollibee said its earnings were boosted by higher sales and better margins, foreign exchange gains, lower financing costs, and a lower income tax rate.

The company's total revenues jumped 8.3% to P12.28 billion in the first 3 months of the year from P11.34 billion in the same period in 2009.

System-wide sales, a measure of all sales by both company-owned and franchised stores, increased by 8.4% to P16.3 billion from P15.07 billion.

Jollibee said sales in the Philippines went up 7.7%, while sales abroad grew 12.5%.

Of its global sales, 5% was accounted for by new stores, while 3.4% was due to growth in same store sales.

In the first quarter, the Jollibee Group opened a total of 40 stores: 21 in the Philippines, and 19 overseas, of which 14 were in China.

Jollibee said its net operating income for the period surged by 16.8%, faster than the rise in its sales, as gross profit margin improved from 17.5% in 2009 to 19.1% in 2010. Lower raw material costs brought about the increase in profit margin.

Jollibee operates the largest network of restaurant chains in the Philippines. As of March 31, it had a total of 1,570 stores nationwide, and 344 stores abroad.

Recently, the company entered into separate agreements to acquire a majority stake in Chinese noodle chain San Pin Wang, and put up a coffee and gelato business franchise.

http://www.abs-cbnnews.com/business/05/14/10/higher-sales-boost-jollibees-q1-income-23 

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