Jollibee profit dips sans one-time gains

FAST food giant Jollibee Food Corp. (JFC) on Monday reported an attributable net income of P6.8 billion as of end-September, down 5.7 percent from the year-earlier P7.2 billion that included one-time gains.

Consolidated revenues for the period, however, rose 18 percent to P177.41 billion from P150.36 billion, complemented by a 19.1-percent increase in system-wide sales to P251.09 billion from P210.88 billion.

For the third quarter alone, JFC posted an attributable net income of P2.4 billion, up 13.6 percent despite year-earlier non-recurring profits from land conveyance and disposals.

Revenues during the quarter ending September rose by 11 percent to P61.53 billion from P55.45 billion, while system-wide sales jumped by 11.8 percent to P86.96 billion from P77.75 billion.

“We delivered another strong performance in the third quarter with a record-high operating profit of P4.3 billion, increasing by 42.8 percent year-on-year from a revenue growth of 11 percent,” JFC Chief Executive Officer Ernesto Tanmantiong said in a statement.

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He added that Jollibee had recorded its third consecutive quarter of record 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,” Tanmantiong continued.

Third-quarter earnings before interest, taxes, depreciation, and amortization (Ebitda) grew by 5.1 percent to P8.58 billion from P8.16 billion, leading to a 6.4-percent increase in nine-month Ebitda to P24.47 billion from P23 billion.

“[W]e remain confident in our ability to deliver sustainable growth as we continue to focus on what we can control, invest in line with long-term strategy, prudently manage our expenses, and drive efficiencies in our organization,” JFC Chief Financial Officer Richard Shin said.

As of the end of September, the company’s store network had expanded by 5.8 percent compared to 12 months earlier.

JFC currently operates 6,720 stores worldwide, consisting of 3,295 stores in the Philippines and 3,425 food chains internationally.

The firm said it was maintaining its growth guidance for revenues, same store sales, operating income, and store network at 10-15 percent, 7-10 percent, 20-25 percent, and 5 percent, respectively, “as we recognize the ongoing macroeconomic and geopolitical volatility”.

JFC’s board also approved the declaration of a regular cash dividend of P1.23 per share for stockholders on record as of Nov. 24, payable on Dec. 11, 2023,

The firm’s share price fell by 1.11 percent or P2.40 to P214 on Monday.