Jollibee Group Reports Quarter 1 2024 Financial Results Delivers Strong Revenue and Profit Growth, Margin Expansion
Metro Manila, Philippines, May 13, 2024 – Jollibee Foods Corporation (PSE: JFC) – Unaudited Financial Results for the First Quarter Ended March 31, 2024
Jollibee Foods Corporation (JFC, also known as Jollibee Group) one of the largest Asian food service companies, today reported its financial results of operations for the first quarter ended March 31, 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 first quarter:
“The Jollibee Group had an exciting start to the year with a very good performance that exceeded our profit outlook for the first quarter. Our revenue growth of 11.3% translated to robust 13.7% and 26.9% growth in operating income and net income attributable to equity holders of the Parent Company, respectively. Our healthy top line growth combined with further operational efficiencies and effective management of expenses drove expansion of the Jollibee Group’s profit margins.
System-wide sales grew by 10.4%, with both the Philippine and international markets delivering growth in double-digits lapping a strong first quarter 2023. The Jollibee brand, which leads our chicken category grew ahead of the Jollibee Group at 15.8%, with its international operations growing by 25.2% versus SPLY.
I am pleased to share that our Jollibee brand has just been recognized as the 2nd Most Valuable Brand in the Philippines, with a 51% increase in brand value, by the London-based brand valuation consultancy agency Brand Finance® in its recently released Brand Finance Philippines 2024 Report.
I would like to thank our employees for delivering these strong results. Your solid execution allowed us to deliver better-than-expected earnings for the quarter and I look forward to building on this momentum in the coming quarters.”
The Jollibee Group reported first quarter 2024 system-wide sales (SWS) of Php86.8 billion, an increase of 10.4% compared to Php78.6 billion in the first quarter of 2023. The increase was driven by a combination of 5.5% same store sales growth (SSSG) mainly from volume growth and 4.6% contribution from new stores.
SSSG of the Philippine business increased by 6.9% while the international business grew by 3.2% led by EMEAA +14.7%, Milksha +8.7%, Jollibee North America +12.3%, and CBTL
+2.0%. Smashburger declined by 4.1% but showed month-on-month improvement in Average Daily Sales. The Jollibee Group’s China business also declined by 3.7% versus a strong SSSG a year ago, in line with the Quick Service Restaurant industry in China. China business’ SSSG for the first quarter of 2023 grew by double-digits driven by the temporary recovery in consumption, particularly in February and March after the lifting of Covid-19 restrictions. This was also exacerbated by weak consumer spending power in the current year. Highlands Coffee declined by 9.0% but was better than industry and gained 4.0% market share.
Operating profit grew by 13.7% to Php4.1 billion and the related margin percentage improved by 20 basis points (bps) arising mainly from higher gross profit level. The resulting net income attributable to equity holders of the Parent Company (NIAT) was Php2.6 billion, up 26.9% compared to the same quarter last year, with a NIAT margin improvement of 60 bps. Earnings per share (basic) grew by 28.3% to Php2.244.
Jollibee Group Chief Financial Officer, Richard Shin gave the following statement:
“We had a strong finish to 2023 and I am pleased that we are once again kicking off the year in a position of strength with the first quarter off to a good start. We are slightly ahead of our guided growth rates. Our business fundamentals are strong, and we are poised to continue our growth trajectory, leveraging the strength of our brands and strategic investments to support our long-term growth plans.