Jollibee Foods Corp. (JFC) on Tuesday said its net income fell 17 percent to P4.92 billion in the first semester from the previous year’s P5.91 billion despite its solid performance in April to June.
Systemwide sales for the period rose 12 percent to P244.67 billion from the previous year’s P217.73 billion.
For the second quarter alone, the company posted an income growth of 3 percent to P3.52 billion from the previous year’s P3.41 billion. Systemwide sales jumped by 14 percent to P130.8 billion from the previous year’s P114.54 billion.
‘Our second-quarter results demonstrate the continued strength of the Jollibee Group’s global brand portfolio and the resilience of consumer demand across our key markets. We delivered healthy system-wide sales growth across all regions, supported by strong contributions from both our Philippine and international businesses, continued same-store sales growth, and ongoing expansion of our global store network,’ Ernesto Tanmantiong, the company’s CEO, said.
The company said its second-quarter figures indicate that it has been able to adjust to the cost pressures in January to March.
Reported profitability for the quarter was affected by the P239-million in transition-related costs, covering store closure and lease termination costs associated with the ongoing turnaround of Yonghe King and Smashburger toward predominantly franchised business models, it said.
‘The second quarter represents an important step forward in our earnings momentum. Pricing actions implemented beginning in April, together with productivity, sourcing and cost discipline initiatives, contributed to the recovery in gross profit margins and supported stronger operating income and NIAT [net income after tax] margins,’ Richard Shin, the company’s chief financial and risk officer, said.
Jollibee maintained its guidance for a systemwide sales growth of 8 percent to 12 percent and store network growth of 5 percent to 10 percent for the entire year, supported by continued demand across key markets and disciplined execution across its global brand portfolio.
Full-year same-store sales growth guidance is being revised to 3 percent to 4 percent, while the gross new store opening target is being updated to 1,000 to 1,100 stores. Despite the lower gross opening target, Jollibee said it expects overall store network growth to remain in line with its previous guidance, reflecting ongoing portfolio optimization and the timing of store openings and closures.
Capital expenditures are now expected to be in the range of P13 billion to P15 billion. Operating income growth guidance is revised to 10 percent to 15 percent, reflecting the updated same-store sales assumptions, the revised expansion assumptions, continued transition-related costs for China and Smashburger, and the still-dynamic cost environment.