(Bloomberg) -- Jollibee Foods Corp.’s Philippine businesses boosted the fast-food chain’s second-quarter profit, even as it struggled with its operation in China.
Net income of the Philippines’ biggest restaurant operator jumped 31% from a year ago to 3.04 billion pesos ($53.4 million) during the period, the company said on Wednesday. Revenue rose 10.6% to 67.22 billion pesos, as Philippine and international businesses grew 11.1% and 9.7%, respectively, CEO Ernesto Tanmantiong said.
Key Philippine restaurants, including its eponymous brand that sells sweet spaghetti and fried chicken, Chowking and Mang Inasal, outperformed their sales targets, he said.
Sales in China, which the Philippine fast-food group regards as a key overseas market, fell 13.4% on weak consumer spending. Jollibee had 567 stores under multiple brands as of end-June in the world’s second-largest economy and the sales drop was steeper than the 3.7% decline in the first quarter.
The April-June results drove the company’s net income for the first six months of the year to 5.66 billion pesos, up 29% from a year earlier, while revenue rose 11% to 128.52 billion pesos.
Jollibee is reducing this year’s capital spending by around 20% from its previous guidance to 16-18 billion pesos to prioritize its “champion brands,” Jollibee Chief Financial and Risk Officer Richard Shin said.
Full-year operating income growth is now seen at 18%-20% from 10%-15% previously even with a slightly slower forecast expansion of 6%-7% for its store network from 7%-8% earlier.
Jollibee expects to add 750-820 stores this year — up from its previous target of 700-750 — given the consolidation of South Korea’s Compose Coffee which it acquired in July.
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