source: abs-cbnnews.comMANILA, Philippines - Rising raw material costs and consumer prices took their toll on Jollibee Food Corp.'s (JFC) first quarter profits, which fell nearly 10% from last year.
In a financial filing with the stock exchange, the fast food giant said its net income attributable to equity holders of parent fell 9.9% to P622 million in January to March 2011 from P690 million in the same period last year.
It said both system-wide sales, which is all sales by both company-owned and franchised stores, and revenues grew, but they failed to offset higher costs and expenses.
Revenues climbed 13.7% to P13.97 billion, while system-wide sales jumped 14.7% to P18.7 billion.
"The Jollibee group's net income as a percent of its revenues decreased by 1.1 percentage points to 4.5% in the first quarter of 2011 mainly on account of a 1.3 percentage points increase in the cost of sales as a percent of revenues," explained JFC chief finance officer Ysmael Baysa.
"The slight price adjustments we implemented in the latter part of 2010 and first quarter of 2011 and our cost improvement effort were not sufficient to cover the increase in the cost of raw materials and store and manufacturing expenses," he added.
Meanwhile, while JFC's foreign businesses continued to perform strongly, some of its local stores were hit by slow consumer spending brought about by inflation pressures.
JFC chairman and CEO Tony Tan Caktiong said Jollibee and Mang Inasal grew, but other brands saw a decline in same store sales.
"The rising consumer prices and household expenses affected consumers' food spending outside of home," he added.
JFC operates the Philippines' largest fast food network with a total of 1,931 stores in the country. Overseas, it has 407 outlets.
source: abs-cbnnews.com
No comments:
Post a Comment