Stock News 2012: Jollibee enters hot pot business in China

Jollibee (Photo credit: Wikipedia)
Fastfood giant Jollibee Foods Corp. (JFC) is breaking into the hot pot business through a partnership with Wowprime Corp., Taiwan’s largest restaurant chain group, to operate the 12 Sabu restaurant brand in China, Hong Kong and Macau.

In a disclosure to the Philippine Stock Exchange yesterday, JFC said its wholly-owned subsidiaries Jollibee Worldwide Pte. Ltd. (JWPL) and Golden Plate Pte. Ltd. signed an agreement with Wowprime unit Hoppime Ltd. to form a joint venture company to own and operate the 12 Sabu chain, known for its low-priced hot pot dishes served in a clean and bright dining environment.

JFC’s subsidiaries and Wowprime will each own 48 percent of the joint venture, giving them equal control and management in the firm. The remaining four percent will be held by certain individuals with experience in the retail sector in China.

JFC is expected to shell out around $8 million this year until 2015 for the joint venture.

As of end 2011, there were 18 12 Sabu stores operating in Taiwan with revenues of about NT$200 million.

This marked the first time for Wowprime to enter into a joint venture.

“The joint venture aims to tap into the very popular hot pot dining market in China with the benefit of the combined experience and expertise of Wowprime and JFC,” JFC said.

Founded in 1990, Wowprime is a publicly-listed company in Taiwan that currently owns and operates 210 stores under 11 brands in Taiwan, 46 stores under two brands in China, and two stores under one brand in Thailand

JFC, on the other hand, is the Philippines’ biggest food service company with 2,022 stores as of end-June 2012. The stores consist of flagship brand Jollibee (756), Chowking (385), Greenwich (201), Red Ribbon (207), Mang Inasal (448) and Burger King (25).

In China, the JFC Group has 367 stores under three brands (Yonghe King, Hong Zhuang Yuan and San Pin Wang). It also owns research and development and food processing facilities in the world’s most populous nation.

Started in northern China during the Tang dynasty, hot pot is a type of dish where soup is boiled in a metal pot of stock. Various meat and vegetables are placed into the hot pot and cooked at the table.

The hot pot dining industry in China has been growing by an average of more than 20 percent in the past five years. Typical hot pot dishes include thinly sliced meat, leafy vegetables, mushrooms, wontons, egg dumplings and seafood.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=840761

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Stock News 2012: Jollibee profit up 8%

Jollibee! (Photo credit: swilkes)
Fastfood giant Jollibee Foods Corp. (JFC) posted a net income of P672 million in the first quarter this year, up 8.1 percent from the previous level on strong sales growth of all brands and network expansion.

In a disclosure to the Philippine Stock Exchange, JFC said system-wide sales, a measure of all sales to consumers, both company-owned and franchised stores, climbed 15 percent to P21.55 billion on the strength its local brands.

JFC said its restaurants continued to experience very healthy same-store sales growth from increases in volume resulting from more customers. This was attributed to new products, improving services, a slight reduction in prices, and the decreasing inflation rate.

JFC said its foreign business registered a 20.5 percent growth in system-wide sales, with China operations growing 26.9 percent, Southeast Asia and the Middle East 22.6 percent, and the US 6.9 percent.

Revenues amounted to P16.49 billion, 18 percent higher than the 2011 figure of P13.97 billion.

JFC chief financial officer Ysmael Y. Baysa said the strong Philippine operations were partially offset by lower China profit margins as labor and rent expenses outpaced sales growth.

The first quarter profit also reflected the financial results of SuperFoods, a joint venture based in Vietnam of which JFC owns 50 percent, with Highlands Coffee and Pho 24 Vietnamese noodles as primary businesses.

Using the equity method of accounting, the P23.1 million equity in net losses of SuperFoods sliced JFC’s consolidated net income by 3.7 percent.

The group opened 39 new stores in the first quarter, 26 of which are in the Philippines and 13 overseas.

This brings the group’s total restaurant network to 2,513 worldwide as of end-March 2012. Of the total, 2004 are located in the Philippines (Jollibee 752, Chowking 381, Greenwich 204, Red Ribbon 207, Mang Inasal 436 and Burger King 24).

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=807323

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Stock News 2012: Meralco says customers to see lower bills

Jollibee mascot (Photo credit: Wikipedia)
fast food chains in the world” in its May 2012 issue.

The homegrown fastfood chain made it to the list alongside England’s Pret a Manger, Russia’s Teremok, Taiwan’s Din Tai Fung, Puerto Rico’s El Mason Sandwiches, Japan’s Ippudo, Australia’s Chocolateria San Churro, and Brazil’s Giraffas, among others.

“Fastfood gets a Filipino twist at this quick-serve chain, which is so beloved that its mascots star in their own children’s television show,” said author Jamie Feldmar in the article.

“There are more than 700 locations across the country, serving anything from fried chicken and hamburgers to local favorites like palabok, rice noodles with meat sauce, shrimp and hard-boiled egg.”

Feldmar also recommends the “Spicy Chickenjoy, fried chicken coated with chili powder” to first-time diners.

Apart from Chickenjoy, Jollibee also became a household name in the Philippines for its Jolly Spaghetti, Palabok Fiesta, Yumburger, and Peach Mango Pie, among other treats.

Starting as a two-branch ice cream parlor in 1975, it grew into what is now the largest and most popular fast food chain in the country.

Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of more than 750 stores.

http://www.philstar.com/Article.aspx?articleId=807758&publicationSubCategoryId=63

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Stock News 2011: Jollibee Expects 50-50 Revenue Mix

Image via Wikipedia
ollibee Foods Corp. (JFC) expects a 50-50 ratio in revenues from its foreign and domestic multi-brand food chain business in the next three years.

Tony Tan Caktiong, Chairman and CEO of JFC, told reporters at the sidelines of the Franchise Asia 2011 where he was a speaker that while its international multi-brand food businesses is growing faster than its local business, the ratio is expected to be equally 50-50 ratio in three years time.

In terms of revenues, the foreign business now contributes 20 percent of its total business but is growing faster.

Tan Caktiong said that its China business is growing faster despite difficulties around the world like soaring food prices.

The company has acquired three food restaurants brands in China including a congee and noodle outlet. These franchises are growing fast as franchise concepts in China.

The company is also planning to bring these brands outside of China through franchise concepts.

It has also acquired a Vietnamese restaurant Viet Thai International, which is also being eyed for international franchising.

Locally, Jollibee has a total of 795 stores under franchise arrangements and accounting for 52 percent of its total Jollibee stores in the country.

40 percent of Greenwich stores are also under franchise while 65 percent of Chowking stores are under franchise.

Mang Inasal is now 65 percent under franchising arrangements.

http://mb.com.ph/articles/335315/jollibee-expects-5050-revenue-mix

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Stock News 2011: Jollibee chalks up P3.1-B net profit in 2010, up 16%, as sales top P70 B

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Jollibee Foods Corporation posted a 16.3 percent improvement in net income last year to P3.1 billion from P2.67 billion in 2009, boosted by higher profit margins and strong fourth quarter sales.

In a disclosure to the Philippine Stock Exchange, JFC said systemwide sales grew 10.2 percent to P70.25 billion from P63.73 billion in the previous year. Systemwide sales meausure all sales by both company-owned and franchised stores.

On the other hand, fourth quarter profits jumped 17.4 percent to P954 million while system-wide sales expanded 11.6 percent to P19.46 billion.

“Practically all our brands in all countries where we operate achieved growth in the fourth quarter of 2010 versus 2009 led by our businesses Yonghe King and Hong Zhuang Yuan in China (up 30 percent), and Jollibee International (up 25 percent),” said JFC chairman Tony Tan Caktiong.

Tan added that “the acquisition of Mang Inasal contributed five percentage points of worldwide sales growth. Its worldwide store network stood at 2,316 stores as of the end of 2010, 23 percent more than 2009 primarily due to the addition of 345 Mang Inasal stores.

“We are able to preserve and even slightly improve our profit margins despite the fast rising cost of labor, power and raw material,” he noted.

http://www.mb.com.ph/node/305627/jollibee-chalk

Stock News 2010: Jollibee net P711M in Q3, up by 32%

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MANILA, Philippines—Fastfood giant Jollibee Foods Corp. grew its third-quarter net profit by 31.8 percent to P711 million from a year ago on higher retail sales and better margins from its worldwide restaurant network.

This brought JFC’s nine-month net profit to P2.15 billion, up by 16.2 percent year on year, on the back of P38.42 billion in revenue.

JFC chief executive officer Tony Tan Caktiong disclosed to the Philippine Stock Exchange on Thursday that sales were robust in practically all brands led by a double-digit growth rate in the turnover of its flagship Jollibee brand.

“Today, more people eat in each Jollibee store in the Philippines than in each of the past two years due to higher product value appreciation as rated by consumers in market research,” he said.

Systemwide sales—a measure of all sales to consumers—amounted to P16.88 billion in the third quarter and P50.79 billion for the nine-month period, both up by around 10 percent. Philippine sales rose by 7.7 percent while foreign sales grew by 20.5 percent year on year in the quarter.

http://business.inquirer.net/money/topstories/view/20101111-302711/Jollibee-net-P711M-in-Q3-up-by-32

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Stock News 2010: JFC Completes Acquisition of China Firm

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MANILA, Philippines – Jollibee Foods Corporation (JFC), through subsidiary Jollibee Worldwide Pte. Ltd, has signed a RMB 30 million share purchase agreement with Guangxi Zong Kai Food Beverage Investment Company Ltd for the acquisition of 55 percent of Guangxi San Ping Wang Food and Beverage Management Company.

In a disclosure to the Philippine Stock Exchange, JFC said the target firm operates the San Pin Wang beef noodle business. It has 34 stores located mostly in Nanning City in Guang Xi Province in South China.

The agreement is in line with the framework agreement which was signed last April which provided for the eventual joint ownership of San Pin Wang.

Jollibee will pay RMB 30 million for the 55 percent stake while GZK will retain 45 percent. As joint venture partners by the first quarter of 2011, Jollibee and GZK will invest RMB 20 million with for the expansion of San Pin Wang.

As part of its overseas expansion, Jollibee Worldwide recently signed a joint venture agreement with Hua Xia Harvest Holdings Pte. Ltd. of Singapore to put up a P340.34 million commissary in China.

JFC said they have formed Jollibee Foods Processing Pte. Ltd., a Singaporean Company, that is 70 percent-owned by JWPL while Hua Xia Harvest has a 30 percent share.

The new firm will undertake food manufacturing operations to supply products to food service businesses’primarily the Jollibee Group of Companies.

http://www.mb.com.ph/node/284566/jfc-complete

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Stock News 2010: Jollibee buying 70% of Mang Inasal

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FASTFOOD GIANT Jollibee Foods Corp. is buying 70% of the Mang Inasal chain of chicken restaurants for P3 billion.

In a disclosure, Jollibee Foods said it would pay P200 million in downpayment to the owner of Mang Inasal Philippines, Inc., Injap Investments, Inc. led by Edgar Sia III.

The homegrown fastfood chain said Mang Inasal would add the equivalent of 5% of Jollibee Foods' worldwide system sales and 7% of profits. The acquisition will also increase Jollibee Food's worldwide network of stores by 16%.

http://www.bworldonline.com/main/content.php?id=19654

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