Jollibee Foods Corp., one of the largest Asian food service companies, said Wednesday net income growth gathered pace in the second quarter, rising 31 percent year-on-year to P3.04 billion after a 29 percent increase in the first quarter, buoyed by double-digit growth in revenue in the Philippines.
Revenue growth in the second quarter rose 11 percent to P67.22 billion, aided by the 11.1 percent sales growth in the Philippines and a 9.7 percent growth in international operation.Second-quarter numbers sent Jollibee net income rising 29 percent to P5.66 billion in the first half and revenue 11 percent higher to P128.52 billion.
CEO Ernesto Tanmantiong said the strong performance in the second quarter “reflects our strong operational execution” and allows the company to raise operating income growth projection to 18-20 percent from the previous 10-15 percent.
Jollibee kept its guidance for systemwide sales target of 10-14 percent, same store sales growth of another 5-7 percent and store openings of 700-750 new stores. Capital expenditures, however, was only P16-18 billion from P20-23 billion.
Jollibee, the group’s flagship brand, maintained its strong performance, with systemwide sales in the Philippines rising 12 percent while that of international operations surged 24 percent. The growth was fueled by a combination of same-store sales growth of 7.4 percent, new store sales of 3.6 percent, and changes in foreign currency rates of 1.0 percent.
Digital channels, including online sales and self-order kiosks, saw impressive growth of 22 percent. Digital channels now account for 21 percent of the group’s sales for the quarter.
Same store sales growth in the Philippine market increased by 9.1 percent, driven by high demand during end-of-school year activities and special occasions like Mother’s and Father’s Day.
Internationally, SSSG varied by region and brand, with EMEA growing by 17 percent, largely due to Jollibee Vietnam’s 20 percent SSSG. In North America, Jollibee US and Canada grew by 16 percent and 10 percent, respectively, while Smashburger faced a 3.6 percent decline but showed sequential improvement.
In the coffee and tea segment, CBTL saw an 11 percent increase, Milksha grew by 6.8 percent, and Highlands Coffee experienced a 3.3 percent decline, reflecting overall industry trends in Vietnam. China, however, saw a 13.4 percent decline due to weak consumer spending.
The Jollibee Group’s strong revenue growth and cost discipline led to a 20 percent increase in gross profit to P13.1 billion, with margin expansions for both the Philippine (+140bps) and international (+170bps) businesses. Operating income reached P5.1 billion, marking a 90 bps improvement in margin for the quarter.
