Jollibee Foods Corporation's Earnings Surge by 24.1% to P8.47 Billion

​Jollibee Foods Corporation (JFC), also known as the Jollibee Group, one of the largest Asian food service companies, today reported its financial results of operations for the third quarter ended September 30, 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 quarter:

“During the third quarter, we successfully completed the acquisition of Compose Coffee and the results that we are reporting today include the impact of this value-accretive transaction. Our consolidated system-wide sales (SWS) for the quarter increased by 13.2%, driven by the international business which grew by 20.5%. Compose Coffee contributed 11.5% to the growth of the international business’ SWS and added 2,580 stores to the global store network as at end of the quarter.

The Philippine business saw a healthy increase in SWS (+8.5%) and SSS (+6.4%) even after lapping a strong SWS and SSS growth of +16.5% and +13.0%, respectively last year. Organically, the international business grew SWS by 9.0% and SSS by 4.5%.

Our Jollibee brand, which has over 1,700 stores globally and accounts for 51.0% of the Jollibee Group’s organic SWS grew robustly by 12.6% in the third quarter. The growth was broad-based, coming from all regions: Philippines +10.3%, North America +14.4%, EMEAA +26.8% and China (Hong Kong and Macau) +12.7%.

Alongside these strong results, I am pleased to share that our Jollibee brand has been recognized recently as Southeast Asia’s No. 1 brand, based on marketing analytics firm Campaign Asia’s latest study. This achievement reflects our commitment to bringing great[1]tasting food and joy to our customers. I am incredibly proud of our employees, particularly our store teams for their dedication in providing our customers with the best service and store experience.”

The growth in the Jollibee Group’s SWS for the quarter was driven by a combination of SSSG (+5.7%), new stores sales (+1.8%) and changes in foreign currency (1.2%). Compose Coffee contributed 4.6% to the global SWS. Revenues grew by 10.1%, with Compose Coffee adding 1.4% to the growth.

SSSG of the Philippine business increased by 6.4% (TC + 8.2%; AC -1.7%) mainly coming from Jollibee, Mang Inasal and Chowking. EMEA grew by 10.5% driven by Jollibee Vietnam which posted SSSG of 14.0%. In North America, Jollibee US and Canada grew by 19.5% and 19.7%, respectively, while Smashburger declined by 4.5%. For the coffee & tea segment, CBTL posted +10.7%, Milksha +4.2% and Highlands Coffee -2.5%. China declined by 12.1% due to continued weak consumer spending. Overall, SSSG of the international business grew by 4.5%.

Operating income for the quarter increased by 11.6%, with the increase coming from the Philippine business (+8.5% YoY growth) and the consolidation of Compose Coffee which delivered close to P500.0 million income from August 16th to September 30th, 2024. Excluding Compose Coffee, the international business’ operating income for the quarter declined compared to the same quarter last year but remained profitable.

General and administrative expenses grew at a faster rate than revenues due to increase in personnel costs driven by headcount increases. Advertising and promotions also increased significantly, by 35.0% YoY or 0.3% of revenues.
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Net income attributable to equity holder of the Parent Company (NIAT) and basic earnings per share (EPS) for the quarter increased by 15.3% and 15.9%, respectively. Year-to-date, NIAT and EPS grew by 24.1% and 25.2%, respectively.

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

“While we were up against a record quarter last year, we achieved an 11.6% increase in operating income and an 80 basis points (bps) improvement in gross profit margin. This quarter’s earnings performance was highlighted by the consistent strong performance of the Philippine business and contributions from Compose Coffee. Additionally, the global Jollibee brand showed continued strength, growing operating income for the quarter by strong double-digits. Our organic operating income growth was flat as our investment in people weighed on our general and administrative expenses.

Given our robust performance YTD, our Board of Directors today approved a cash dividend of P1.82 per share, for a total cash dividend of P2.97 for the full year of 2024. This is 29.1% higher compared to the cash dividend declared in 2023. This demonstrates the Jollibee Group’s commitment to creating value for its shareholders and its confidence in its ability to deliver on its 2024 financial outlook.”

At the end of September 2024, the Jollibee Group’s store network increased by 42.8% to 9,598 compared to a year ago: Philippines (3,340) and International (6,258) - 568 in China, 381 in North America, 362 in EMEA, 815 with Highlands Coffee mainly in Vietnam, 1,219 with CBTL, 333 with Milksha and 2,580 with Compose Coffee in South Korea.