Jollibee Q1 Recurring Earnings Up 42%

May 11, 1999 PSE CIRCULAR FOR BROKERS NO. 1032-99 JOLLIBEE Q1 RECURRING EARNINGS UP 42% Publicly listed Jollibee Foods Corporation registered a first quarter consolidated net recurring income of P224 million. This translates to a 42% growth from the P158 million net income before extraordinary gains in the same period last year. Inclusive of these extraordinary items, net income grew 24%. Jollibee chairman and president Tony Tan Caktiong also announced that the company posted consolidated revenues of P3.09 billion, a growth of 28% while systemwide sales amounted to P3.8 billion, a growth of 21%. "The weak economic climate continued to weigh down on the consumer sector," Tan Caktiong said. The impact of the economic weakness was mitigated only to a certain degree by the fastfood sector's relative resiliency. Also, for Jollibee, the new stores contributed principally to the growth registered by the Company during the period. Tan Caktiong took note of some positive developments such as the strong first rice and corn harvests in the agriculture sector, the less-than-severe La Nia weather, the five-month stable forex rate, the downtrend in borrowing rates, and the improving unemployment level particularly with overseas Filipino workers. He said that all of these may augur well for a much hoped-for economic recovery. But he cautioned that any positive impact of favorable economic indicators will only materialize if the trend is sustained and after a considerable lag time. "We, therefore, continue to view the market and business environment for the ensuing quarters of 1999 with cautious optimism", he said. LLjur The company operates the country's largest quick food service chains in the country. As of the end of 1st quarter, its Jollibee brand had 310 stores, while its Greenwich operations had 172 outlets. Jollibee remained clearly focused on its strengths under a lingering environment of economic weakness and competitive challenges from local and foreign players. It continued to enhance its operational and cost efficiencies to strengthen its competitive edge in delivering superior product taste, quality, value, and affordability to consumers. "All of these extraordinary responses will enable us to achieve long-term growth and profitability even in challenging times," Tan Caktiong. said. Jollibee, he said, aims to enhance its market dominance in the hamburger market as it continues to register higher consumer top of mind and share of visits. He also said that the Company aims to further improve on the newly won market leadership of Greenwich in the pizza segment. Greenwich is now the biggest player in the pizza segment and one of the largest fastfood brands in the country. The Company will likewise pursue aggressively its plan to expand the Jollibee and Greenwich network and continue to upgrade and expand its manufacturing and logistics infrastructure. The Board of Directors approved the declaration of a cash dividend of P0.10 per share payable to stockholders of record as of May 14, 1999.