Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today reported its financial results of operations for the fourth quarter (Unaudited) and full year ended December 31, 2023, based on its Audited Consolidated Financial Statements.

JFC CEO, Ernesto Tanmantiong gave the following statement on JFC’s 2023 performance:

“Our full year 2023 results reflect the strength of our execution and resiliency of our brands. We achieved an all-time high revenue of Php244.1 billion, a 15.2% increase year-over-year which translated to a new record operating profit of Php14.4 billion, up by 45.0% compared to full year 2022. Year on year, we improved gross profit and operating profit margins each by 120 basis points (bps), reinforced by our cost efficiency initiatives and our ability to control non-inventory-related costs.

Looking ahead to 2024 and beyond, we will continue to focus on our priorities. We will scale the business with our four big focus areas: (1) Expand our Jollibee brand internationally; (2) Grow our coffee and tea business; (3) Exponentially grow in China in multiple lower tier cities; and (4) Sustain our strong growth and market leadership in the Philippines. We will ramp up franchising to support our global expansion. We will also accelerate our digital transformation and bring capabilities on-par with global Quick Service Restaurant leaders to increase operational efficiency and further improve customer experience and revenue management. While we work on driving JFC’s long-term growth, we will remain committed to governance, ethics, sustainability, and responsible business practices. Our strategies combined with a portfolio of strong and valuable brands and the support of our talented global team give me the confidence that we will be able to achieve our goal to triple our value (in terms of net income attributable to equity holders of the Parent Company) in five years.”

Fourth Quarter and Full Year 2023 Financial Highlights:

Notes:

(1)“System-wide sales” is a management account and not part of the Audited Financial Statements

(2)EBITDA, net income, and EPS for the fourth quarter and full year December 2022 include one-off gains from land conveyance and sale of other properties which amounted to (Php0.4Bn) and Php4.9Bn, respectively.

System-wide sales (SWS), a measure of all sales to consumers, both from company owned and franchised stores grew by 9.6% for the quarter and 16.3% for the entire year compared to same periods last year. Revenues grew by 8.4% and 15.2% for the quarter and full year, respectively.

For the entire year, SWS of the Philippine business grew by 17.6% driven by a 13.9% growth in SSS and 3.8% contribution from new stores. Transaction count or volume improved by 8.2% while average check increased by 5.2%.

Operating profit for the quarter grew by 33.2% to Php2.5 billion, resulting in a 70-bps improvement in operating profit margin. Gross profit margin was 19.7%, up from 18.3% in the year-ago quarter while operating expenses for the quarter increased by 70 bps driven by higher advertising and promotions. For the year, operating profit increased by 45.0% to Php14.4 billion with margins improving by 120 bps year- on-year driven by higher gross profit margin.

Net income attributable to equity holder of the Parent Company (NIAT) for the quarter amounted to Php1.9 billion compared to Php319.6 million in the fourth quarter of 2022. For the year, NIAT grew by 16.0% to Php8.8 billion despite a one-off gain of Php4.9 billion in 2022 from land conveyance and disposals. Basic Earnings per share (EPS) grew by 782.3% to Php1.641 for the quarter and 16.5% to Php7.455 for the entire year.

JFC CFO, Richard Shin commented, “2023 was another remarkable year, our strong execution drove sales and operating profit growth at the higher end of our guidance. We generated significant cash flow putting us in an excellent position to execute our growth strategy for 2024. While we continue to open new stores this year, we remain focused on managing elements within our control, including driving top line through omni channels, effective cost management and operational efficiency. This gives us the confidence that we will continue to deliver revenue and profit growth, as well as margin and operating cash flow expansion in 2024.”

At the end of December 2023, JFC’s store network increased by 6.3% compared to a year ago. JFC operated 6,885 stores worldwide: Philippines (3,339) and International (3,546): 567 in China, 389 in North America, 337 in EMEA, 779 with Highlands Coffee mainly in Vietnam, 1,164 with CBTL and 310 with Milksha. Its largest brands by store outlets worldwide are Jollibee with 1,660, CBTL 1,164, Highlands Coffee 779, Chowking 613, and Mang Inasal 573.

Full Year 2024 Guidance

Based on its target for 2024, JFC projects full year system-wide sales growth to be in the range of 10%- 14%, with same store sales growth of 5%-7% and store network increase of 7%-8%. Operating profit growth will be in the range of 10%-15%.

JFC plans to open 700 to 750 owned and franchised stores (gross) in 2024 and expects capital expenditures (CAPEX) to be in the range of Php20.0 to 23.0 billion.

Corporate Action

The JFC Board of Directors approved on March 8, 2024, 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 March 25, 2024 (ex-dividend date of March 22, 2024). Payment date is on April 15, 2024.

– 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 March 25, 2024 (ex-dividend date of March 22, 2024). Payment date is on April 15, 2024.

Recognition

Recently, Jollibee has been recognized as the second fastest-growing restaurant brand in the world,

according to the latest annual brand ranking report by Brand Finance, the world’s leading independent brand valuation agency. Surging by an impressive 51% to USD 2.3 billion in brand value, Jollibee

ascended from rank 20 to rank 17 in this year’s Global Restaurant Rankings.

The brand further solidified its position by achieving fifth place in the strongest restaurant brand category, elevating its rating from AA- to AAA. In addition, Jollibee is the only Philippine brand listed in the 2024 Top 25 Most Valuable Restaurant Brands and Top 10 Strongest Restaurant Brands.

(For the complete story, please visit: https://jollibeegroup.com/news/jollibee-ranks-as-second-fastest-growing- restaurant-brand-in-the-world/)

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 JFC 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 JFC’s expectations. All subsequent written and oral forward-looking statements attributable to JFC or persons acting on behalf of the JFC Group are expressly qualified in their entirety by the above cautionary statements.