Jollibee sets 2012 spending at P4B to P5B
MANILA, Philippines - Jollibee Foods Corp. (JFC), the largest Philippine restaurant operator, may set capital spending at P4 billion to P5 billion this year, Chief Executive Officer Tony Tan Caktiong said.
In an interview with Bloomberg News, Tan said the company is “always on the lookout” for acquisition opportunities overseas and in the domestic market, and wants to expand in India at some point.
JFC earlier this month acquired the operator of San Pin Wang, a 34-store beef-noodle chain in South China.
Tan said this year’s spending plan does not yet include any budget for acquisitions.
In 2011 JFC invested P4 billion to expand its store count and supply-chain facilities with another P2 billion spent on acquisitions, it said in a previous filing.
Tan said Jollibee would continue to expand in the domestic and overseas markets where it has existing brands.
A recent research report by CitisecOnline pegged JFC’s 2012 capital investments at P5.8 billion. Of that amount, up to half would be spent to increase its store count by 125 stores in Philippines and 100 stores in China.
By the end of 2011, JFC had 2,001 stores in the Philippines through the flagship Jollibee brand alongside Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King.
It also operates 468 stores abroad including China-based Yonghe King and Hong Zhuang Yuan.
JFC shares rose 2.76 percent to P119.20 each, giving the fast-food giant a market value of P123.78 billion on Wednesday.
JFC said earlier that net income in 2011 increased 0.5 percent to P3.21 billion as high commodity prices tempered a 17.9- percent jump in revenues to P62.9 billion. JFC said full-year cost of sales increased 19.6 percent to P51.73 billion in 2011.
It said domestic sales during the period grew 17.8 percent while sales abroad increased by 19 percent led by China, up 27.5 percent, and Southeast Asia and the Middle East, up 23.3 percent.