Jollibee Foods Corporation, one of the largest Asian food service companies, reported a 26.9 percent growth in attributable consolidated net income to P2.62 billion in the first quarter of 2024 from the P2.06 billion earned in the same period last year (SPLY).
In a disclosure to the Philippine Stock Exchange, Jollibee Group President and CEO Ernesto Tanmantiong said “The Jollibee Group had an exciting start to the year with a very good performance that exceeded our profit outlook for the first quarter.”
“Our revenue growth of 11.3 percent translated to robust 13.7 percent and 26.9 percent growth in operating income and net income attributable to equity holders of the Parent Company, respectively.
“Our healthy top line growth combined with further operational efficiencies and effective management of expenses drove expansion of the Jollibee Group’s profit margins,” he added.
Tanmantiong noted that, “System-wide sales grew by 10.4 percent, with both the Philippine and international markets delivering growth in double-digits lapping a strong first quarter 2023.
“The Jollibee brand, which leads our chicken category grew ahead of the Jollibee Group at 15.8 percen percent, with its international operations growing by 25.2 percent versus SPLY,” he said.
The Jollibee Group reported first quarter 2024 system-wide sales (SWS) of P86.8 billion, an increase of 10.4 percent compared to P78.6 billion in the first quarter of 2023.
The increase was driven by a combination of the 5.5 percent same store sales growth (SSSG), mainly from volume growth, and a 4.6 percent contribution from new stores.
SSSG of the Philippine business increased by 6.9 percent while the international business grew by 3.2 percent led by EMEAA (Europe, Middle East, and Africa) 14.7 percent, Milksha 8.7 percent, Jollibee North America 12.3 percent, and Coffee Bean and Tea Leaf 2.0 percent.
Smashburger declined by 4.1 percent but showed month-on-month improvement in Average Daily Sales. The Jollibee Group’s China business also declined by 3.7 percent versus a strong SSSG a year ago, in line with the Quick Service Restaurant industry in China.
China business’ SSSG for the first quarter of 2023 grew by double-digits driven by the temporary recovery in consumption, particularly in February and March after the lifting of Covid-19 restrictions. This was also exacerbated by weak consumer spending power in the current year.
Highlands Coffee declined by 9.0 percent but was better than industry and gained 4.0 percent market share.
“We had a strong finish to 2023 and I am pleased that we are once again kicking off the year in a position of strength with the first quarter off to a good start. We are slightly ahead of our guided growth rates,” said Jollibee Group Chief Financial Officer Richard Shin.
He noted that, “Our business fundamentals are strong, and we are poised to continue our growth trajectory, leveraging the strength of our brands and strategic investments to support our long-term growth plans.”