Jollibee Foods Corporation, a leading Asian food service giant, experienced a slight decrease in its net income in the first nine months of 2023, recording P6.82 billion, a 5.7% drop from the P7.24 billion earned in the same period in 2022. This decline is attributed to a one-time gain of P5.3 billion from land conveyance and disposals included in last year’s profits.
Despite this, the company’s system-wide sales saw a significant increase of 19%, reaching P251.09 billion, while revenues climbed by 18% to P177.43 billion. Notably, operating income surged by 47.7% to P11.91 billion, compared to P8.06 billion in the previous year.
Ernesto Tanmantiong, JFC’s CEO, highlighted the company’s robust third-quarter performance, with a record-high operating profit of P4.3 billion, a 42.8% year-on-year increase. This success is attributed to an 11.0% revenue growth, marking JFC’s third consecutive quarter of record-high operating income. Tanmantiong emphasized the strength and resilience of JFC’s brands in a challenging and volatile environment, with both Philippine and international businesses showing strong growth in operating profit.
The Philippine business of Jollibee demonstrated a remarkable 16.5% growth in system-wide sales and a 13% increase in same store sales. Internationally, the system-wide sales grew by 5.4%, with same store sales up by 2.6%. The Jollibee brand, with over 1,600 stores globally, contributed significantly to this growth, accounting for 49.0% of JFC’s system-wide sales with a 16.7% increase in the third quarter.
Tanmantiong remains optimistic about the company’s future, maintaining the 2023 growth guidance for revenue, same store sales, operating income, and store network, despite acknowledging the ongoing macroeconomic and geopolitical volatility.
The third quarter saw system-wide sales grow by 11.8% and revenues by 11%. The Philippine business led this growth, with most brands experiencing high double-digit increases. The international segment also expanded, with notable growth in China, North America, and EMEA Philippine brands.
JFC’s global same store sales increased by 8.8% in the quarter, driven by a 4.9% growth in transaction count and a 3.7% growth in average check. The company’s strong top-line performance and robust gross profit margin of 18.3% resulted in a record operating income of P4.3 billion for the quarter, a 42.8% year-on-year increase.
Richard Shin, JFC’s Chief Finance Officer, expressed confidence in the company’s financial resilience and its ability to deliver sustainable growth. He emphasized JFC’s focus on controlling what they can, investing in line with their long-term strategy, managing expenses prudently, and driving efficiencies.