JOLLIBEE Foods Corp. (JFC) recorded a 15.3% increase in third-quarter (Q3) attributable net income to P2.81 billion, driven by its international business and the recent acquisition of South Korea’s Compose Coffee.
Third-quarter revenue rose by 10.1% to P67.73 billion from P61.53 billion a year ago, JFC said in a statement to the stock exchange on Tuesday.
System-wide sales (SWS) grew by 13.2% to P98.48 billion versus P86.96 billion in 2023, driven by the 20.5% growth of the international business. Operating income also rose by 11.6% to P4.81 billion.
“Compose Coffee contributed 11.5% to the growth of the international business’ SWS and added 2,580 stores to the global store network as of the end of the quarter,” JFC Chief Executive Officer Ernesto Tanmantiong said.
According to JFC, the consolidation of Compose Coffee delivered close to P500 million worth of income from Aug. 16 to Sept. 30.
In July, JFC announced the acquisition of Compose Coffee for $340 million to bolster its coffee and tea business.
The company’s SWS growth for the quarter was led by the 5.7% increase in same-store sales growth (SSSG), the 1.8% jump in new store sales, and the 1.2% improvement in foreign currency changes.
SSSG of the domestic business surged by 6.4%, led by the Jollibee, Mang Inasal, and Chowking brands. The Europe, Middle East, Asia, and Africa (EMEAA) region recorded a 10.5% jump in SSSG, led by Jollibee Vietnam.
In North America, the SSSG of Jollibee United States and Canada rose by 19.5% and 19.7%, respectively, while Smashburger dropped by 4.5%.
In terms of SSSG for the coffee and tea segment, JFC said the Coffee Bean and Tea Leaf (CBTL) brand saw a 10.7% increase, while Milksha posted a 4.2% growth, and Highlands Coffee dropped by 2.5%.
The China business declined by 12.1% due to continued weak consumer spending.
“The Philippine business saw a healthy increase in SWS (+8.5%) and SSS (+6.4%) even after lapping a strong SWS and SSS growth of +16.5% and +13%, respectively, last year. Organically, the international business grew SWS by 9% and SSS by 4.5%,” Mr. Tanmantiong said.
“Our Jollibee brand, which has over 1,700 stores globally and accounts for 51.0% of JFC’s organic SWS, grew robustly by 12.6% in the third quarter. The growth was broad-based, coming from all regions: Philippines +10.3%, North America +14.4%, EMEAA +26.8%, and China (Hong Kong and Macau) +12.7%,” he added.
For the first nine months, JFC grew its attributable net income by 24.1% to P8.47 billion from P6.82 billion a year ago.
Revenue increased by 10.6% to P196.25 billion, while SWS climbed by 12% to P281.11 billion.
As of the end of September, JFC increased its store network by 42.8% to 9,598, with 3,340 domestic stores and 6,258 international branches.
Of the international stores, JFC has 568 in China, 381 in North America, 362 in EMEAA, 815 with Highlands Coffee, 1,219 with CBTL, 333 with Milksha, and 2,580 with Compose Coffee.
JFC shares went down by 0.23% or 60 centavos to P259.40 per share on Tuesday. — Revin Mikhael D. Ochave
