Jollibee Foods Corporation Reported Q12024 System-Wide Sales (SWS) of P86.8 Billion, Up 10.4%

Jollibee Foods Corporation (JFC, also known as Jollibee Group) one of the largest Asian food service companies, today reported its financial results of operations for the first quarter ended March 31, 2024, based on its Unaudited Consolidated Financial Statements.

Jollibee Group CEO Ernesto Tanmantiong gave the following statement on the Jollibee Group’s performance for the first quarter: 

“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% translated to robust 13.7% and 26.9% 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.

System-wide sales grew by 10.4%, 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%, with its international operations growing by 25.2% versus SPLY.

I am pleased to share that our Jollibee brand has just been recognized as the 2nd Most Valuable Brand in the Philippines, with a 51% increase in brand value, by the London-based brand valuation consultancy agency Brand Finance® in its recently released Brand Finance Philippines 2024 Report.

I would like to thank our employees for delivering these strong results. Your solid execution allowed us to deliver better-than-expected earnings for the quarter and I look forward to building on this momentum in the coming quarters.”

The Jollibee Group reported first quarter 2024 system-wide sales (SWS) of P86.8 billion, an increase of 10.4% compared to P78.6 billion in the first quarter of 2023. The increase was driven by a combination of 5.5% same store sales growth (SSSG) mainly from volume growth and 4.6% contribution from new stores.

SSSG of the Philippine business increased by 6.9% while the international business grew by 3.2% led by EMEAA +14.7%, Milksha +8.7%, Jollibee North America +12.3%, and CBTL +2.0%. Smashburger declined by 4.1% but showed month-on-month improvement in Average Daily Sales. The Jollibee Group’s China business also declined by 3.7% 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% but was better than industry and gained 4.0% market share. 

Operating profit grew by 13.7% to P4.1 billion and the related margin percentage improved by 20 basis points (bps) arising mainly from higher gross profit level. The resulting net income attributable to equity holders of the Parent Company (NIAT) was P2.6 billion, up 26.9% compared to the same quarter last year, with a NIAT margin improvement of 60 bps. Earnings per share (basic) grew by 28.3% to P2.244.

Jollibee Group Chief Financial Officer, Richard Shin gave the following statement:

“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. 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. 

Recently, we announced our investment in Botrista, Inc. (Botrista), a company that has developed a robotic drinks solution for the food industry. We are excited about this investment as it provides commercial and strategic synergies with our coffee and tea brands and the opportunity to grow exponentially in one of our key product pillars, the coffee and tea segment. Through Botrista’s DrinkBot machines, we’d be able to increase our distribution footprint in the important US market, at zero to minimal capital expenditure as well as deliver superior commercial returns. Our existing stores can subscribe to Drinkbots and get instant sales lift.

We also disclosed in April that we will have 90% participating interest in Titan Fund II as Limited Partners with a capital commitment of S$90 million. While Titan Fund II has not made investments yet, it will focus on strategic investments in food and beverage concepts with the objective to further grow Asia Pacific food service brands and/or bring strong global food service brands to Asia Pacific, in line with the Jollibee Group’s four product pillar strategy (i.e., chicken, Chinese cuisine, coffee and tea and better burgers).

We will capitalize on these important opportunities to grow our business with strategic partners & investments and continue to create both near- and long-term value for our stakeholders.” 

At the end of March 2024, the Jollibee Group’s store network increased by 5.3% compared to a year ago. JFC operated 6,886 stores worldwide: Philippines (3,337) and International (3,549): 553 in China, 386 in North America, 344 in EMEA, 782 with Highlands Coffee mainly in Vietnam, 1,165 with CBTL and 319 with Milksha. Its largest brands by store outlets worldwide are Jollibee with 1,676, CBTL 1,165, Highlands Coffee 782 and Chowking 616.

Based on its first quarter results, the Jollibee Group is maintaining its guidance for 2024, as follows: 

• System-wide sales growth of 10%-14%
• Same store sales growth of 5%-7%
• Store network increase of 7%-8%
• Operating profit growth of 10%-15%
• 700-750 new stores
• Capital Expenditures in the range of P20-23 billion

​The Jollibee Group’s Board of Directors approved on April 23, 2024, the declaration of a regular cash dividend of P1.15 per share of common stock for all shareholders of record as of May 9, 2024. Payment date is on May 23, 2024.