Headline numbers
Jollibee Foods Corp. recorded a 24.1-percent increase in net income attributable to equity holders, reaching P8.47 billion for the first nine months of 2024, compared to P6.82 billion in the same period in 2023.
Revenues rose by 10.6 percent to P196.25 billion from P177.41 billion, reflecting strong operational performance.
System-wide sales (SWS) grew by 12 percent, hitting P281.11 billion, up from P251.09 billion.
Management’s view
“During the third quarter, we successfully completed the acquisition of Compose Coffee and the results that we are reporting today include the impact of this value-accretive transaction,” said Jollibee Group CEO Ernesto Tanmantiong.
“Our consolidated system-wide sales for the quarter increased by 13.2 percent, driven by the international business which grew by 20.5 percent,” he said.
“Compose Coffee contributed 11.5 percent to the growth of the international business’ SWS and added 2,580 stores to the global store network as at end of the quarter,” he added.
Compose Coffee boost, China slows
Compose Coffee made a notable impact, contributing 4.6 percent to global system-wide sales and driving 1.4 percent of revenue growth.
Overall, operating income rose 11.6 percent, bolstered by the 8.5-percent growth in the Philippines and Compose Coffee’s P500 million contribution from mid August until the end of September this year.
Jollibee’s overseas segments posted healthy results while China struggled with a 12.1-percent sales decline.
Jollibee’s store network grew 42.8 percent year-on-year to 9,598 locations, with 3,340 in the Philippines and 6,258 internationally as of Sept. 30 this year.
Margins improve
Jollibee Group chief financial and risk officer Richard Shin said the company also achieved a 0.8-percent increase in gross profit margin.
“This quarter’s earnings performance was highlighted by the consistent strong performance of the Philippine business and contributions from Compose Coffee,” Shin said.
“Additionally, the global Jollibee brand showed continued strength, growing operating income for the quarter by strong double-digits. Our organic operating income growth was flat as our investment in people weighed on our general and administrative expenses,” he added.
Dividends
Jollibee’s board announced a regular cash dividend of P1.82 per share on Nov. 11, 2024, set for payment on Dec. 10 to shareholders on record by Nov. 25.
This marks a 48 percent rise from the P1.23 dividend declared a year earlier.
“This demonstrates the Jollibee Group’s commitment to creating value for its shareholders and its confidence in its ability to deliver on its 2024 financial outlook,” Shin said.
