Jollibee swings to profitability in third quarter
It is also getting a majority stake in the firm that owns bubble tea chain Milksha.
Jollibee Foods Corporation (JFC) swung back to profitability in the third quarter, posting an attributable net income of P1.57 billion (approx. US$31.2 million), reversing the P1.58-billion net loss it posted in the same period last year.
In a disclosure to the local stock exchange, the improved earnings was a result of its business transformation program, which includes the closure of unprofitable stores, headcount reduction in stores that remain open, closure of four commissaries in the Philippines, and the downsizing of commissary operations that began in April last year.
Company’s revenues amounted to P37.2 billion in Q3, up by 24.1% year-on-year from P29.97 billion on the back of higher sales. This was still 13.8% lower than the company’s pre-pandemic topline of P43.18 billion in 2019.
System-wide sales from both company-owned and franchised stores rose by 26.6% to P51.39 billion from P40.59 billion in the third quarter. Notably, this was 10.4% lower than its sales of P57.36 billion in the comparable period in 2019.
Same store sales in its Philippine business went up by 32.4% year on year, whilst sales from its international business rose 12.4%. Worldwide same store growth also improved by 23.6%.
“China grew by 2.9%, North America by 19.6%, [same store sales from] Europe [or] Middle East [and] other parts of Asia by 8.8%, and The Coffee Bean & Tea Leaf (CBTL) by 20.0%,” JFC said.
The Philippine fast food giant’s operating income for the quarter amounted to P945 million, a reversal of its P3.35-billion loss in the previous year.
JFC also posted an attributable net income of P2.7 billion for the first nine months of the year, reversing the P13.54-billion loss it posted in the same period.
Topline for the January-to-September period was up 17.1% to P108.57 billion from last year’s P92.73 billion but was 15% lower than 2019 levels.
System-wide sales for the first nine months, meanwhile, improved by 18.4% to P149.69 billion from P126.42 billion in the same period last year.
JFC launched 249 new stores during the period, 67 of which were opened in China, 47 in the Philippines, 29 in North America, and 15 in Europe, Middle East, Asia, and Australia region. SuperFoods opened 48 stores and CBTL launched 43.
The company also closed 221 stores permanently in the third quarter — 63 in the Philippines and 158 internationally.
The listed fast food giant is also expanding its international footprint, confirming it would purchase 51% of Taiwanese company Milkshop, which also trades under Milksha, for US$12.8 million.
