Jollibee nine-month profit down but Q3 up on resurgent sales

Global fast-food giant Jollibee Foods Corp., (JFC) led by the family of Tony Tan Caktiong, posted lower earnings in the first nine months of the year on the absence of a one-time gain from last year.

JFC saw its net income decline by 5.7 percent to P6.8 billion during the nine-month period from P7.2 billion in the same period in 2022, which included a P5.3 billion gain from land conveyance and disposals.

The company’s third quarter net income rose by 3.6 percent to P2.4 billion despite a higher base.

System-wide sales, a measure of all sales to consumers both from company owned and franchised stores, jumped by 19.1 percent from January to September to P251.1 billion.

Growing in line with system-wide sales, JFC’s revenues for the nine-month period rose by 19 percent to P177.4 billion.

For the third quarter alone, JFC delivered a record-high operating profit of P4.3 billion,42.8 percent higher year-on-year.

“This is JFC’s third consecutive quarter of record-high operating income. Both our Philippine and international businesses achieved strong operating profit growth reflecting the strength and resilience of our brands in an environment that remains volatile and challenging,” JFC chief executive officer Ernesto Tanmantiong said.

While the group anticipates continued positive momentum in its business performance, Tanmantiong said JFC is maintaining its 2023 growth guidance of 10 to 15 percent for revenue, seven to 10 percent for same store sales, 20 to 25 percent for operating income, and five percent store network.

He said the company acknowledges the current macroeconomic and geopolitical volatility.

In the third quarter, JFC opened 429 stores, of which 365 are in the international markets.

JFC operates a total of 6,720 stores worldwide as of end September. Of the total, 3,295 of which are in the Philippines and 3,425 abroad.