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Friday, April 18, 2014

Jollibee board clears P800-million loan from BPI

Jollibee Foods Corp (JFC) is borrowing P800 million from Bank of the Philippine Islands.

In a regulatory filing, the homegrown fastfood giant said its board of directors authorized the application for a loan or credit facilities from the Ayala-led bank.

JFC did not elaborate on how it intends to use the loan facility, but the company is embarking on a record capital spending this year as it accelerates the expansion of its store network worldwide.

The Jollibee group is earmarking P6.3 billion for its 2014 capex, higher than the P4.1 billion spent in 2013, to finance investments in new stores as well as renovations and upgrade of existing stores both in the Philippines and abroad.

JFC is investing P3 billion in additional capex to increase the capacity of its manufacturing plants in the Philippines and China to serve the fast growth of demand of the businesses. It is also investing heavily in the upgrade of its information systems.

JFC is coming off a banner year with earnings rising 24.50 percent, the fastest pace in seven years, to P4.64 billion from P3.73 billion in 2012. Likewise, sales surpassed the P100-billion mark for the first time in the company's 35-year history.

JFC operates the largest food service network in the Philippines with 2,181 stores at end- 2013 comprising the flagship Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King. It was operating 583 stores abroad, including Yonghe King, Hong Zhuang Yuan, San Pin Wang and Chow Fun.

JFC has a 50 percent interest in joint ventures for Highlands Coffee (Vietnam, Philippines) at 84, Pho 24 (Vietnam, Indonesia, Philippines, Hong Kong, Macau and Japan) at 70 and 12 Sabu (China) at 8.

Source: Interaksyon

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