Jollibee Group Sustains Strong Revenue and Profit Growth, Margin Expansion in Q2 2024
Metro Manila, Philippines, August 13, 2024 – Jollibee Foods Corporation (PSE: JFC) – Unaudited Financial Results for the Second Quarter Ended June 30, 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 second quarter ended June 30, 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 second quarter:
“The Jollibee Group’s momentum this year continues with excellent second quarter performance. Our revenue grew by 10.6% led by the Philippine business which increased by 11.1% and International business which grew by 9.7%. Our margins expanded, 150 basis points (bps) for gross profit from 18.0% to 19.5% and 90bps for operating income growing from 6.6% to 7.5%, reflecting our strong operational execution.
Systemwide sales (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 EMEAA and North America. Our coffee and tea business improved sequentially and year-on-year, led by The Coffee Bean and Tea Leaf® (CBTL) which grew SWS by 25.6% during the quarter.
Jollibee, our lead global brand for the chicken category continued to execute well. SWS of the Jollibee Philippine business grew by 11.8% while international business grew by 23.9% with EMEAA and North America growing by 28.0% and 18.9%, respectively. Same store sales grew ahead of industry both for the Philippines and internationally. Alongside these ahead of industry results, I am particularly pleased to share that our Jollibee brand has been named Best Fast Food Fried Chicken (2024) by USA Today 10Best.
I’d like to thank our Global team for delivering another strong performance. I look forward to building on these positive results throughout the rest of the year.”
The growth in the Jollibee Group’s SWS for the quarter was driven by a combination of same store sales growth (SSSG) (+7.4%), new stores sales (+3.6%) and changes in foreign currency (1.0%). Sales of digital channels, which include online sales and self-order kiosks accelerated, registering a growth of 22.4% driven by EMEA (+195.4%), CBTL (+35.6%) and Philippines (+29.6%). Digital channel accounted for 21% of the Jollibee Group’s sales for the quarter.
SSSG of the Philippine business increased by 9.1% (TC + 6.5%; AC +2.4%) fueled by the strong demand from end-of-school year activities and special occasions (Mother’s/Father’s Day). SSSG of the international business was mixed across regions/ brands. EMEA grew by 16.8% driven by Jollibee Vietnam with SSSG of 20.2%. In North America, Jollibee US and Canada grew by 15.7% and 10.3%, respectively, while Smashburger declined by 3.6% but improved sequentially. For the coffee & tea segment, CBTL posted +11.4%, Milksha +6.8% and Highlands Coffee -3.3%, indicating improving macros in Vietnam. China declined by 13.4% during the quarter due to weak consumer spending, reflecting overall industry trends.
Overall, SSSG of the international business grew by 4.7%.
The Jollibee Group’s strong revenue growth and cost discipline resulted in a 19.9% increasein gross profit (GP) to Php13.1 billion, with significant margin expansion for both the Philippine (+140bps) and international (+170bps) businesses. This produced a robust operating income of Php5.1 billion and a 90bps improvement in operating income margin for the quarter.
Net income attributable to equity holder of the Parent Company (NIAT) and basic earnings per share (EPS) for the quarter increased by 30.8% and 32.2%, respectively.
At the end of June 2024, the Jollibee Group’s store network increased by 5.1% compared to a year ago. JFC operated 6,956 stores worldwide: Philippines (3,348) and International (3,608): 567 in China, 383 in North America, 356 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 1,186, Highlands Coffee 789 and Chowking 618.
Full Year 2024 Guidance
Based on the Jollibee Group’s financial performance for the 2nd quarter and developments announced in July, the Jollibee Group is revising its guidance for 2024, as follows:
Note that the Compose Coffee acquisition has not closed as at date of this press release.
Forward-Looking Statement 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 Jollibee 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 Jollibee Group’s expectations. All subsequent written and oral forward-looking statements
attributable to the Jollibee Group or person acting on behalf of the Jollibee Group expressly qualified in their entirety by the above cautionary statements.
