‘All-time high’ sales boost Jollibee profits

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AST-FOOD giant Jollibee Foods Corp. (JFC) on Tuesday reported that net income last year had risen by 22.4 percent to P8.99 billion, from P7.34 billion in 2022, following “all-time high” revenues.

Net income attributable to the parent’s equity holders rose 16 percent to P8.8 billion and was achieved despite a one-off gain of P4.9 billion in 2022 from land conveyance and disposals, JFC said.

“Our full-year 2023 results reflect the strength of our execution and the resiliency of our brands,” Ernesto Tanmantiong, the company’s chief executive officer, said in a statement.

JFC said revenues were 5.2 percent higher at P244.1 billion from P211.9 billion, resulting in “record” operating income of P14.4 billion, up 45 percent year on year.

System-wide sales (SWS) were up 16.3 percent at P345.3 billion versus P296.8 billion, fueled by a “10.6 percent growth in samestore sales and 5.4 percent from new stores.”

“The Philippine business, which accounts for 61 percent of JFC’s consolidated SWS, delivered 17.6 percent growth in SWS, while the international business grew by 14.4 percent,” Tanmantiong added.

The Jollibee brand, which has over 1,600 locations worldwide and accounts for 49 percent of the company’s total SWS, saw 18.5-percent growth last year.

This year, Tanmantiong said JFC would continue expanding the Jollibee brand’s global reach, grow the coffee and tea business, and “exponentially” increase the company’s presence in China while sustaining growth in the local market.

“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.”

The fast-food chain operator launched 658 stores in 2023, bringing its total store network to 6,885 at the year-end, higher than the 2023 guidance of 550 to 600 new stores.

“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,” JFC Chief Finance Officer Richard Shin said.

“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,” he added.

On Tuesday, JFC shares were up by P2.00, or 0.77 percent, at P262 each amid a 0.11-percent rise in the benchmark Philippine Stock Exchange index.