Mirroring the effects of a slowing economy marked by rising costs of oil and commodities, fastfood giant Jollibee Foods Corp. reported a 15-percent drop in net earnings in the first half of the year as expenses increased.

In a financial report filed with securities regulators, Jollibee said net earnings declined to P1.125 billion from P1.32 billion even as its revenues expanded 12.47 percent to P20.83 billion.

System-wide sales, a measure of sales to consumers, rose eight percent to P27.55 billion from P24.93 billion.

SM INVESTMENTS Corporation (SM), the country's leading mall operator, has reported a net income of P6.5 billion or 14 percent increase for the first half of 2008.

SM president Harley Sy said: "SM's sound performance during the first half of the year amid many market challenges reinforces the defensive position that SM has taken over the years. Our businesses have been equipped to sail through headwinds of spiraling fuel and food prices and changing consumer patterns."

He added "we continue to take a long-term perspective so that we view the market turbulence as being temporary. As such, we remain on course as far as our expansion program is concerned."