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Jollibee set for strong 20% growth in FY2025
Its growth is balanced by strong domestic and international businesses.
Jollibee Foods Corporation (JFC) is poised for robust performance in FY2025, driven by a strong domestic business and promising growth in its international markets, a Maybank report said.
According to the report, JFC’s portfolio in 2025 is an interesting mix of solid domestic business, coupled with strength in its coffee and tea segment following the acquisition of Compose Coffee and Jollibee brand’s ongoing strength in North America.
“JFC’s dominance in the Philippines, strong execution capability and management track record should see it post a robust domestic performance and improve its international operations. JFC is expected to achieve significant earnings growth, with net income forecasted to rise by 20% in FY2025 and 12% in FY2026,” Daphne Sze, an analyst from Maybank said.
The report furthers that the easing of inflation, expected to stabilise at 3.2% in 2025, presents a key catalyst for JFC’s growth. Lower inflation should strengthen household purchasing power and boost demand for essential goods, benefiting the company’s diverse portfolio.
JFC’s competitive advantages, including its solid economic moat, focus on the mid-to-mass market, and strong earnings growth potential, make it a standout pick in the consumer-facing segment. The company is seen as a top choice among FMCG and QSR stocks, ahead of competitors its competitors.
Additionally, the group is set to benefit from lower commodity prices, including a projected 5% decline in average prices for key ingredients such as wheat, edible oil, coffee, and cocoa. This decline, coupled with stable input costs and strategic cost-saving measures, should improve JFC’s margins and contribute to the company’s bottom-line growth.
The broader sector also shows promise, with FMCG and QSR manufacturers expected to see revenue growth driven by volume increases and modest price hikes in line with inflation.
