Jollibee Posts Nearly P1 Billion Profit in 2Q of 2021, Completes Buyout of Tim Ho Wan
Jollibee Foods Corporation reported a net income attributable to equity holders of the parent company of P976 million for the second quarter of 2021, bouncing back from a P10.3 billion loss during the same period last year at the height of lockdown measures to curb the spread of COVID-19.
In a filing with the Philippine Stock Exchange, JFC also reported total system-wide sales of P50.5 billion in the second quarter of the year, up 64.7 percent versus the same period in 2020.
For the first half of 2021, the company posted total system wide sales of P98.3 billion, an increase of 14.5 percent compared to the same period last year, and a total net income attributable to the equity holders of the parent of P1.128 billion, up 109.4 percent versus a net loss of P11.96 billion in the same period of 2020.
For full year 2020, JFC reported a net loss of P11.49 billion, down from P7.3 billion income in 2019.
Jollibee completes takeover of Tim Ho Wan
In a separate filing, JFC also announced that it plans to buy out the shares of the remaining partners in the fund that owns popular dimsum chain Tim Ho Wan. Jollibee Worldwide Pte. Ltd. (JWPL), a wholly owned subsidiary of JFC that already owns an 85 percent participating interest in the fund will pay SG$71.56 million (about P2.65 billion) to purchase the remaining 15 percent interests of other investors in Titan Dining LP (“Titan”), the private equity fund that owns the Tim Ho Wan brand and company-owned stores.
JFC bought a 45 percent interest in Titan Dining in May 2018 for SG$45 million (P1.67 billion) and eventually opened a Tim Ho Wan franchise in Shanghai, China. JFC increased JWPL’s capital commitment to Titan to SG$120 million and its participating interest to 60 percent in October 2019 and then further upped it to 85 percent after JWPL purchased another investor’s 25 percent participating interest for SG$36.3 million one year later.
JFC’s joint venture now has three Tim Ho Wan outlets in Shanghai, with the latest having opened in July 2021. The company says it plans to aggressively expand the brand in mainland China, targeting to reach 100 restaurant outlets within the next four years.
Tim Ho Wan currently has 53 outlets in Asia, including 12 stores in Singapore, 12 in Taiwan, seven in the Philippines and six in Hong Kong.
Openings and closures
Meanwhile, the JFC Group also reported that it opened 164 new stores in the first semester of 2021: 29 in the Philippines, 38 in China, 15 in North America and nine in the Europe, Middle East, Africa, and Australia grouping. Most notably, SuperFoods (which operates mainly out of Vietnam) and Coffee Ben and Tea Leaf opened 26 and 47 stores, respectively.
Simultaneously, the company also closed a total of 172 stores permanently during the quarter: 54 in the Philippines and 118 outlets overseas.