Jollibee Foods Corp., the largest fastfood chain, said Tuesday net income in 2015 declined 10.4 percent to P4.8 billion from P5.3 billion in 2014 due to extraordinary costs incurred in the fourth quarter last year.
Net profit in the fourth quarter of 2015 dropped 45 percent to P948 million from P1.72 billion year-on-year.
Jollibee chief finance officer Ysmael Baysa said the company’s 2015 net income was adversely affected by significant short-term costs amounting to almost P1 billion. The costs covered information technology upgrade, increase in network development organization, acquisition of US-based hamburger chain Smashburger and extra supply chain and logistics costs.
“These are necessary investments that are helping make possible growing faster than we anticipated. These are necessary investments that are helping make possible JFC’s short and long term sales and profit growth,” Baysa said.
Minus the extraordinary cost items, Jollibee’s net income would have increased 8.2 percent and 7.8 percent in the fourth quarter and the entire 2015, respectively.
“We do not expect the same rate of expense increases in 2016. We look forward to a strong profit recovery in 2016 and in the years ahead,” Baysa added.
Systemwide sales in 2015, meanwhile increased by 10.9 percent to P130.7 billion from P117 billion in 2014 as the company opened a record 303 stores last year.
The stores consist of 246 in the Philippines, 39 in China, 17 in Southeast Asia and the Middle East and one in the United States.
“The new stores are performing well, particularly those in the Philippines, exceeding their sales target and return on investments,” Jollibee chief executive officer Ernesto Tanmantiong said.
Jollibee as of end 2015 was operating a total of 2,475 restaurant outlets.
Including stores from affiliates and joint venture partnership, namely Highlands Coffee, Pho 24, 12 Hotpot and recently acquired Smashburger, Jollibee group’s total number of stores totaled 3,635 as of end 2015.
Jollibee in November said it would spend P10.4 billion in capital expenditures for 2016, including P7.5 billion for new stores and renovations of existing outlets.
“We look forward to a robust business in 2016 and in the years ahead,” Tanmantiong said.
Share price of Jollibee on Tuesday declined fell 1.1 percent to P212.20.