Jollibee Foods Corp., the largest Philippine quick service restaurant group, on Wednesday reported a 14 percent decline in first half net income to P4.39 billion, with double-digit increases in sales and operating income outweighed by the absence of one-off gain from asset sale that was booked last year.
The company booked a gain of P2.9 billion in the first half of 2022.
Jollibee said system wide sale, which measures all sales to consumers from company-owned and franchised restaurants, increased 23 percent in the first half to P164.13 billion, with sales in the Philippines 15 percent while international business jumped 21 percent on strong performance delivered by operations in China. The Jollibee brand, which has over 1,600 stores globally and accounts for 49 percent of the system wide sales, posted a robust growth of 16 percent.
Strong sales lifted revenue in the first half by 22 percent to P115.88 billion.
Ernesto Tanmantiong, Jollibee chief executive officer, said that of the 270 stores opened by the company in the first half, 230 are located overseas, helping drive international sales.
“Our operating profit margin for the (second) quarter proved resilient, improving both on year-on-year (70 bps) and quarter-on-quarter (10 bps) metrics. The financial results for the second quarter and first half affirm our confidence in our full-year guidance,” he said.
Jollibee’s chief financial officer Richard Shin said in a statement that the double-digit growth in sales and operating income “demonstrates the strength and resiliency” of the fast food business.
“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,” he added.
