Jollibee Food Corp divests Pho24 to grow other core areas

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Jollibbee Foods Corporation’s (JFC) will be divesting from the Vietnamese noodle chain, PHO24, as part of its strategy to grow its other core brands.

In an interview with Bloomberg, Jollibee’s chief financial officer, Richard Shin said that this decision aims to reflect the company’s commitment to solidifying its presence in key market segments.

At a press briefing, Shin added the importance of portfolio consolidation, citing Jollibee's portfolio boasting 13 proprietary brands. With the streamlining of operations, he stated that Jollibee will now focus on other segments namely chicken, burgers, coffee and tea, and Chinese cuisine.

He deemed this to align closely with the company's strategic direction.

Considering the uncertain economic climate, Shin added that strategising and onboarding cost efficient programmes resulted in "very good yields for [JFC]".

Last year, the fast-food operator was reported to look into selling 10 to 15% of its stake in the Vietnamese coffee chain Highlands Coffee as seen in a report by Reuters.

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Earlier this year, JFC announced is aiming to expand its global presence by opening up 600 stores this year.

In a stock exchange filing, Jollibee said it plans to open 550 to 600 owned and franchised stores in 2023, expecting the capital expenditures to range from P17 to P19billion. This exceeds the total stores opened last year, which was 542.

“Looking ahead, while we expect macroeconomic challenges to persist in 2023, we are confident that the JFC Group is resilient and well-positioned to drive near-term growth. We have clear priorities on profitability while we continue to invest strategically to deliver long-term growth and value for our shareholders,” said JFC CEO Ernesto Tanmantiong.

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