Jollibee Foods Corporation
^^Thank you and in due time you will be able to exit CEB.
Jollibee to open 280 new stores in the Philippines, China

JOLLIBEE Foods Corp., the country’s largest fastfood chain, is geared for an aggressive expansion program this year that should help the company grow its profits by more than a tenth to around P3.5 billion.

The fastfood giant will spend P5.5 billion this year, of which a portion will be spent to open almost 300 new stores across all brands, its top executive said.

“This year, we are targeting around 280 [new stores], 90 of that will be in China, 160 in the Philippines and the remaining [in other countries],” Tony Tan Caktiong, chairman and chief executive of Jollibee Foods, told BusinessWorld.

“China is growing very fast so we like to go [there] as much as we can,” Mr. Tan Caktiong said, adding that Jollibee Foods targets a revenue mix of 50-50 in operations locally and overseas in the next three to five years from the existing 15% revenue share of businesses abroad.

Last year, the company put up around 200 new stores across all brands.

The rapid expansion this year will be supported by more than P5 billion in funds.

“For capital expenditures, we are targeting P5.5 billion. That includes [minor] acquisitions but for major acquisitions, [none yet],” Mr. Tan Caktiong said.

Last year, Jollibee Foods spent almost P5.7 billion -- P2.8 billion for new stores and renovations, P2.7 billion for the acquisition of a 70% stake in the operator of chicken barbecue chain Mang Inasal, and P128 million for the initial construction of a commissary in China -- up by more than double from the P2.7 billion spent in 2009.

Brisk sales, and easing cost of raw materials will allow the company to post higher profits this year, the company official said.

“We should be [growing this year by] 12%-15% as long as there are no major inflation movements,” Mr. Tan Caktiong said.

The fastfood chain grew its profits by 16% to P3.09 billion last year.

“We are hoping second half [will be] better than the first half. Of course, we hope there are no major incidents like the Middle East problems [that spiked petroleum prices],” Mr. Tan Caktiong added.

High input costs cut profits of Jollibee Foods by 8.8% to P631 million in the first quarter this year. The latest figures contrast with the performance in the same period last year when profits grew by almost a quarter to P691 million.

Asked about fund-raising schemes, Mr. Tan Caktiong said: “We might [raise funds] if there is a major acquisition.”

In April, Jollibee Foods borrowed P3.9 billion from overseas lenders to bankroll acquisitions abroad and other corporate expenses.

As of end-March, there were 719 Jollibee stores, 403 Chowking Chinese restaurants, 219 Greenwich pizza houses, and 216 Red Ribbon bakeshops. These come on top of 11 Manong Pepe restaurants that will be converted to other brands, three Caffe Ti-amo outlets, and 360 Mang Inasal restaurants.

Jollibee Foods has 407 stores abroad, including 278 restaurants in China.

“Capitalizing on China’s growth story is another factor for Jollibee. They are targeting the correct markets where consumption is a lot more brisk and employment opportunities are brisk,” Grace C. Cerdenia, analyst at brokerage firm, said in a telephone interview yesterday. She added that the attractive branding of Jollibee Foods will also help push income higher.

Shares in Jollibee Foods, which has a market value of P85.97 billion, closed 1.14% or 95 centavos higher at P84 apiece yesterday.
Jollibee ‘feels’ inflation bite, eyes bigger slice of market in China

Sunday, 26 June 2011 17:33 Dennis D. Estopace / Reporter
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THE company that made Tony Tan Caktiong a Forbes Magazine billionaire’s club member eyes a larger slice of China, making its overseas operation a source of half of total revenues in five years.

“China is going very well for us. Although we have 300 stores [there], for that size of market, it’s still very small,” Caktiong told reporters after the annual stockholders’ meeting of Jollibee Foods Corp. (JFC) He later told the BusinessMirror that his inclusion in the Forbes list “is also because of Jollibee and reflects its performance.”

The pressure to be included in next year’s list may be intense as chief finance officer Ysmael V. Baysa said JFC’s performance “so far hasn’t been “growing at the rate we want it to grow.”

Our first-quarter net income was lower by 8.8 percent. We’re still not done for our second quarter but our actual performance so far is behind our target because of increase in raw material costs,” Baysa said, adding that JFC’s profit should grow at the same rate as that of its sales.”

“If you look at the first quarter, we increased sales by about 14.7 but our gross profit was down 8.8. So you can say our profit was down 22 percent. Still, we’re aiming for better profit performance.”

This was also the case last year, the company said in its report to stockholders. Consolidated gross profit for the first quarter of 2010 grew by 6.2 percent, a 1.3-percentage point decline was reported in margins.

Baysa said while they have considered raw materials costs, with prices expected to stabilize in the fourth quarter, “the baseline is very difficult because of a lot of worries in Europe, in the US stock market; even our peso depreciated.”

He added that while “sales are actually okay [in the second quarter of 2011, it’s] not as strong as the second quarter of last year,” when the Philippines held national elections.


1. From this article as stated by their officer itself, you must not be surprised if JFC income is still down come 2nd Quarter and will not exceed H12010 Income Reporting.

2. I did not copy the whole article but the link is there.
[Image: jfc-7-18-11.jpg]
Repost po.. Sorry forgot to state the source..

Philippine stocks getting ‘expensive’

Philippine stocks are getting “expensive” but there are still buying opportunities in selected sectors like services and commodities, according to emerging market investment guru Mark Mobius.
In a briefing in Manila on Monday, the executive chairman of Templeton Asset Management’s emerging markets group said he was upbeat on equities in emerging markets. “The key word is growth. If an economy is growing, the companies in that economy will have a better opportunity to grow.”
In the case of the Philippines, the visiting global fund manager said the domestic economy was still expected to expand this year although at a slower pace compared with last year’s. “We’d like to see the Philippines growing at the rate as China is,” Mobius said.
Mobius added that local stock valuations were now high compared with emerging market peers. But he pointed out that it was too early to say whether the Philippine Stock Exchange index—which was recently hitting record highs—would lose steam.
Given that the local market was driven by domestic liquidity and that there was still ample flow of overseas remittances, Mobius said it would be difficult to determine its peak. At the same time, he said the negative real interest rates in the country—referring to nominal interest less the inflation rate—were still conducive for yield-seeking investors.
Asked about opportunities, Mobius expressed optimism in two sectors, one of which is services, citing in particular fast-food retailer Jollibee Foods Corp. “Jollibee is not a cheap stock but that is the kind of stock we will be interested in,” Mobius said.
The renowned global fund manager is also upbeat on commodities.
“We believe in commodities, whether it is nickel, iron, ore and coal, that is where the Philippines’ potential is,” Mobius said. Given the incredible natural resources in this country, Mobius said it was odd that there were not too many of those big mining companies around.
Compared with emerging market peers, he said the Philippines was at the middle of the pack in terms of certain benchmarks like real interest rates on deposits, corporate governance based on the United Nation’s human development index, and degree of economic freedom.
On the other hand, he noted the country’s poor ranking in the ease of doing business as well as in corruption perception indices.
But he also noted that the Philippine stock market has outperformed the emerging market index in the last 12 months, three years or even over a five-year period.
Mobius said domestic money was primarily helping drive up the local stock market, noting that more foreign portfolio or “hot money” flow is going instead to fixed income and currency investments.
[Image: jfc-7-26-11.jpg]
JFC - Potential Bullish Gartley
Jollibee 1H income down due to higher costs

MANILA, Philippines - Fast food giant Jollibee Foods Corp. reported a cut in profit margins in the first half of the year due to the rise in raw material prices as well as interest expenses on loans to fund acquisitions.

Net income fell 8.3% to P1.31 billion pesos, the company said in a statement to the stock exchange.

While revenue rose 15% to P29.55 billion, cost of sales rose 17% to P24.3 billion. Raw materials, on the other hand, rose about 7%, Chief Financial Officer Ysmael Baysa said.

Meanwhile, funds borrowed to finance acquisitions resulted in P89.9 million of net interest expense, compared with net interest income of P3 million last year.

“The increase in the inflation rate has negatively affected consumer spending in the first quarter of this year,” Jollibee Chairman Tony Tan Caktiong said.

“It continued to affect consumer spending in the second quarter but to a lesser degree as the inflation rate stabilized,” he added.

Inflation jumped to 4.8% in March from 3.6% in December on higher fuel, power and commodity prices. It rose to 5.2% in June.

He said the company improved the customer value of its products and made price adjustments to help improve sales.

The company opened 116 new stores in the first half, 76 of them in the Philippines and 38 abroad.

It now has a total of 2,364 outlets, 1,939 at home and 425 abroad.

should hold 86
gudluck sa gain.
kanya kanyang sell
Trading stocks using technical analysis can be profitable if you understand the secrets that professional traders know.!/ginhawaibibigay

Trading stocks using technical analysis can be profitable if you understand the secrets that professional traders know.!/ginhawaibibigay

may bumili ng 1000000pieces of jollyhotdogs Big Grin
Bible Verse: I Timothy 9
Penny Stocks:
Business tycoons: (edited by comm ollie)

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