Metro Manila, Philippines, August 8, 2023 – Jollibee Foods Corporation (PSE: JFC) – Financial Results for the Second Quarter and First Half Ended June 30, 2023

Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today reported its financial results of operations for the second quarter and first half ended June 30, 2023, based on its Unaudited Consolidated Financial Statements.

JFC CEO, Ernesto Tanmantiong gave the following statement on JFC’s second quarter performance:

“I am pleased with our financial results for the second quarter which reflected continued strong sales and operating profit growth. Compared to the same quarter last year, system-wide sales of the Philippine business grew by 14.5% while international business grew by 20.9%. Our China business posted the highest year-on-year incremental international sales driven by consumption recovery from pandemic disruption last year. Overall system-wide sales for the second quarter grew by 16.9%, with 9% growth in same store sales, 6.2% from new stores and 1.7% from currency translation. JFC opened 270 stores during the first half, 230 of which are in the international markets.

As a result of JFC’s continued strong topline growth and prudent management of expenses, JFC generated an operating profit of Php4.0 billion during the quarter. This represents an increase of 31.0% compared to the operating profit for the second quarter of 2022 and 11.1% higher compared to the first quarter of 2023. Our operating profit margin for the quarter proved resilient, improving both on year-on year (70 bps) and quarter-on-quarter (10 bps) metrics. JFC’s financial results for the second quarter and first half affirm our confidence in our full-year guidance for 2023.”

Second Quarter and First Half 2023 Financial Highlights

Note: EBITDA, net income, and EPS for the second quarter and first half 2022 include one-off gains from land conveyance and sale of other properties which amounted to Php1.1Bn and Php2.9Bn, respectively.

System wide sales (SWS), a measure of all sales to consumers, both from company owned and franchised stores grew by 16.9% in Q2 and 23.3% in the first half of 2023 compared to same periods last year. Revenues grew in line with system wide sales.

For the quarter, system wide sales of the Philippine business grew by 14.5% while international business increased by 20.9%, fueled by the China business which posted a growth of 76.9%. SWS of North America and EMEA Philippine brands grew by 15.1% and 16.1%, respectively. SWS of JFC’s coffee
and tea business increased by 11.0%. The Jollibee brand, which has over 1,600 stores globally and accounts for 49.0% of JFC’s SWS posted a robust growth of 16.0%.

Global same store sales (SSS) for the quarter increased by 9.0% driven by a 6.5% growth in transaction count or volume and a 2.4% growth in average check. Performance across regions/ brands was mixed. The Philippines grew by 11.3% driven by improvement in volume or transaction count (7.1%) and increase in average check (3.9%). International SSS% grew by 5.0%, led by China (35.3%), EMEA Philippine brands (5.1%) and North America (2.6%). SSS% of JFC’s coffee and tea business declined by 1.8%. CBTL was -0.4% due to high-base effect, particularly for Singapore and Malaysia where coffee sales in Q2 2022 rebounded from pre-pandemic levels driven by the reopening of international borders. Highlands Coffee saw its SSS% fall 7.5% due to weak demand.

JFC’s strong topline performance translated to a record operating income of Php4.0 billion for the quarter, significantly contributed by the Philippine business. This represents a year-on-year increase of 31.0% and a margin improvement of 70 bps, from 5.9% of revenues in Q2 2022 to 6.6% in Q2 2023. The results for the quarter and the first half reflected the impact of inflationary pressures, with cost of inventories increasing by 40 bps. This was however, offset by an improvement in store and manufacturing costs and general administrative expenses which fell by 40 bps and 70 bps, respectively.

JFC CFO, Richard Shin commented, “JFC delivered another quarter of solid performance, with strong double-digit growth in sales and operating income. This demonstrates the strength and resiliency of JFC. We remain focused on improving our margins through strong revenue generation and operational efficiencies and will continue to execute on our strategic priorities including accelerating the growth and improving the profitability of our international business.”

Net income attributable to equity holders of the Parent Company for Q2 2023 and earnings per share (EPS) declined by 16.6% to Php2.3 billion and 14.1% to Php1.984, respectively. The net income for Q2 2022 includes a one-off gain from land conveyance and sale of land properties. Excluding the impact of the one-off gain in Q2 2022, net income attributable to equity holders of the Parent Company and EPS grew by 34.6% and 46.5%, respectively.

At the end of June 2023, JFC’s store network increased by 5.1% compared to a year ago. The JFC Group operated 6,617 stores worldwide: Philippines (3,287) and International (3,330): 511 in China, 389 in North America, 340 in EMEA, 673 with Highlands Coffee mainly in Vietnam, 1,117 with CBTL and 300 with Milksha. Its largest brands by store outlets worldwide are Jollibee with 1,609, CBTL 1,117, Chowking 613, Highlands Coffee 673 and Mang Inasal 569.

Corporate Actions

The JFC Board of Directors approved on June 16, 2023 the following:

– The declaration of a regular cash dividend of Php8.20525 per share for Series A preferred shares, for a total payout of Php24.6 million. The regular cash dividend will be given to JFC stockholders of record as of July 4, 2023 (ex-dividend date of June 29, 2023). Payment date is on July 14, 2023.

– The declaration of a regular cash dividend of Php10.60125 per share for Series B preferred shares, for a total payout of Php95.4 million. The regular cash dividend will be given to JFC stockholders of record as of July 4, 2023 (ex-dividend date of June 29, 2023). Payment date is on July 14, 2023.

Forward-Looking Statements Disclaimer

The foregoing disclosure contains forward-looking statements that are based on certain assumptions of Management and are subject to risks and opportunities or unforeseen events.

Actual results could differ materially from those contemplated in the relevant forward-looking statement and the JFC Group gives no assurance that such forward-looking statements will prove to be correct or that such intentions will not change. This Press Release discloses important factors that could cause actual results to differ materially from the JFC Group’s expectations. All subsequent written and oral forward looking statements attributable to the JFC Group or persons acting on behalf of the JFC Group are expressly qualified in their entirety by the above cautionary statements.