JFC says audited income slightly higher last year

FOOD SERVICE company Jollibee Foods Corp. (JFC) reported on Monday an audited net income of P5.98 billion attributable to equity holders, or 0.67% higher than the P5.94 billion it announced last month.

“The minor difference is due to adjustments resulting from the year-end audit,” it said in a press release.

Last year’s income marked a return to profitability for the restaurant operator, which recorded a net loss of P11.51 billion in 2020.

JFC said its positive performance was due to cost savings generated from a business transformation program implemented in 2020 and the continuing strong cost and profit management last year.

“JFC’s operating income decreased slightly by 0.7% to P6.3 billion compared to the operating income disclosed in February 2022. The difference is due to additional leases from recently opened new stores in 2021 not yet considered in the unaudited financial statements for purposes of accounting for leases under PFRS-16,” the company said in a disclosure on Monday.

JFC said its system-wide sales and revenues were the same as previously disclosed in February.

Compared to the unaudited consolidated balance sheet, total assets increased by 1.3% due to a P3.3-billion increase in right-of-use assets (ROU), particularly for foreign business. Total liabilities increased by 2.1% or P2.8 billion due to increase in lease liabilities of the foreign business relative to the increase in ROU assets.

JFC’s operating income of P6.3 billion is a turnaround from the operating loss of P12.8 billion for 2020 and about the same level as 2019 or pre-pandemic operating income of P6.5 billion.

Earnings before interest expense, taxes, depreciation and amortization (EBITDA), an approximation of cash flow from operations, improved to P23.6 billion in 2021 from P4.8 billion in 2020.

JFC has 18 brands operating in 34 countries, with a total store network of 5,961 outlets as of February 2022. Of this, 3,220 stores are in the Philippines and 2,741 are abroad.

The company’s principal business is the development, operation and franchising of quick service restaurants under the trade names: Jollibee, Chowking, Greenwich, Red Ribbon, Yong He King, Hong Zhuang Yua, Mang Inasal, Burger King, Highlands Coffee, PHO24, Hard Rock Cafe, Dunkin’ Donuts, Smashburger, Tim Ho Wan, Tortas Frontera, The Coffee Bean & Tea Leaf, and Panda Express.

At the stock exchange, JFC shares were up by 2.71% or P5.80 to close at P219.80 on Monday. — Luisa Maria Jacinta C. Jocson