LISTED Jollibee Foods Corp. (JFC) recorded a 30.8% increase in its attributable net income for the second quarter to P3.04 billion from P2.33 billion last year, driven by higher system-wide sales.
April-to-June system-wide sales (SWS) rose by 12.1% to P95.8 billion, while revenue climbed by 10.6% to P67.22 billion, JFC said in a regulatory filing on Wednesday.
JFC Chief Executive Officer Ernesto Tanmantiong said the revenue growth was led by the company’s Philippine business, which increased by 11.1%, as well as the international business, which rose by 9.7%.
“SWS for the quarter rose 12.1% year on year, with the Philippine business’ Jollibee, Chowking, and Mang Inasal brands outperforming their SWS targets. Our international business delivered strong second-quarter SWS with robust growth in Europe, the Middle East, and Asia (EMEAA) and North America,” he said.
“Our coffee and tea business improved sequentially and year on year, led by The Coffee Bean & Tea Leaf (CBTL), which grew SWS by 25.6% during the quarter,” he added.
SWS growth was led by the 7.4% increase in same-store sales growth (SSSG), the 3.6% jump in new store sales, and the 1% climb in foreign currency changes.
Sales from digital channels, which include online sales and self-order kiosks, rose by 22.4%, driven by EMEA, CBTL, and Philippine businesses. Digital channels accounted for 21% of JFC’s sales for the second quarter.
SSSG for the Philippine business rose by 9.1%, led by strong demand from end-of-school-year activities and special occasions such as Mother’s Day and Father’s Day.
The international business had a mixed SSSG performance, posting a 4.7% growth during the period.
EMEA grew by 16.8%, driven by Jollibee Vietnam. Jollibee USA and Canada grew by 15.7% and 10.3%, respectively, while Smashburger declined by 3.6%.
For the coffee and tea segment, CBTL grew by 11.4%, Milksha rose by 6.8%, and Highlands Coffee fell by 3.3%. The China business declined by 13.4% due to weak consumer spending, reflecting overall industry trends.
For the first half, JFC grew its attributable net income by 28.9% to P5.66 billion from P4.39 billion a year ago.
SWS increased by 11.3% to P182.63 billion, while revenue climbed by 10.9% to P128.52 billion.
JFC has lowered its capital expenditure budget this year to P16 billion-P18 billion from the initial P20 billion-P23 billion range to prioritize “champion brands.”
“As we move into the second half of the year, we remain focused on capital allocation discipline and prioritizing opportunities with the greatest growth potential that will give the best value for JFC and our shareholders,” JFC Chief Financial and Risk Officer Richard Shin said.
As of end-June, JFC has 6,956 stores worldwide, consisting of 3,348 in the Philippines and 3,608 in other countries.
Of the international stores, 567 are in China, 383 are in North America, 356 are in EMEA, 789 with Highlands Coffee (mainly in Vietnam), 1,186 with CBTL, and 327 with Milksha.
Its largest brands by store outlets worldwide are Jollibee with 1,697, CBTL with 1,186, Highlands Coffee with 789, and Chowking with 618.
JFC shares rose by 2.98% or P7 to P241.60 per share on Wednesday. — Revin Mikhael D. Ochave
