JOLLIBEE FOODS Corp. (JFC) reported an 8.1% decline in first-quarter (Q1) net income to P2.41 billion, down from P2.62 billion last year, due to higher non-operational costs.
“On a quarter-on-quarter basis, both operating income and net income after tax (NIAT) increased by double digits. While NIAT was slightly lower year-over-year, this was primarily due to non-operational factors,” JFC Chief Financial and Risk Officer Richard Shin said in a statement to the stock exchange on Tuesday.
Systemwide sales (SWS) increased by 18.9% to P103.2 billion, driven by 5.5% same-store sales growth (SSSG) from higher volume and contributions from new stores. Operating income rose by 17.6% to P4.8 billion.
Jollibee Group Chief Executive Officer Ernesto Tanmantiong said that the SWS of the domestic and international businesses grew by 11.9% and 29.5%, respectively.
“The growth in SWS of the Philippine business was led by Mang Inasal (+15.3%), Jollibee (+13.3%), Chowking (+9.9%), and Red Ribbon (+8.5%). The Philippine business’ SWS growth was driven by robust same-store sales growth across all four brands, mainly coming from volume or transaction count (TC),” he said.
Mr. Tanmantiong also said that the higher SWS of the international business was supported by the acquisition of South Korean coffee brand Compose Coffee.
“Our coffee and tea segment — now comprising 45.4% of the international business’ SWS — recorded a 62.2% increase, with Compose Coffee accounting for 49% of this growth. The international business’ SWS for the quarter also includes Tim Ho Wan, which is now 100% owned by the Jollibee Group effective January 2025,” he said.
Consolidated revenue rose by 14.6% to P70.2 billion, led by the increase in advertising and promotions.
“The substantial increase in advertising and promotions drove a 14.6% rise in revenues. Our strong first-quarter revenues, combined with our disciplined and prudent approach, led to double-digit growth in operating income and a notable improvement in margins. These results highlight the effectiveness of our strategic initiatives and the resilience of our core business,” Mr. Shin said.
JFC said that the SSSG of the Philippine business increased by 8.5%, led by the Mang Inasal, Red Ribbon, Jollibee, and Chowking brands. The international business saw a 0.7% increase in SSSG.
SSSG of the company’s China business declined by 8.3%, but Yonghe King showed sequential improvement in monthly volume. Smashburger registered a negative 8% SSSG, mainly from TC decline.
Meanwhile, Mr. Shin said that JFC is sticking with its full-year growth targets for this year. He previously announced that JFC is aiming for 8% to 12% SWS growth, 4% to 6% SSSG, and 10% to 15% operating profit growth.
“We are confident in our strategy and execution, and, accordingly, we are reaffirming our full-year guidance,” he said.
“Looking ahead, the Jollibee Group expects continued strong operational performance, and we remain proactive in managing macroeconomic and financial headwinds,” he added.
As of end-March, JFC grew its store network by 44.3% to 9,935, of which 3,393 are in the Philippines and 6,542 are international stores.
Of the international stores, 560 are in China, 361 in North America, 393 in EMEA, 865 with Highlands Coffee mainly in Vietnam, 1,246 with The Coffee Bean and Tea Leaf, 340 with Milksha, 2,700 with Compose Coffee, and 77 with Tim Ho Wan.
JFC shares dropped by 0.85% or P2 to P233 apiece on Tuesday. — Revin Mikhael D. Ochave
