LISTED fastfood giant Jollibee Foods Corp. (JFC) reported a 5.6% year-on-year increase in second-quarter (Q2) attributable net income to P3.21 billion, supported by higher system-wide sales (SWS).
SWS for the second quarter improved 19.6% to a record-high P114.5 billion from P95.8 billion a year ago, JFC said in a regulatory filing on Thursday.
The Philippine business grew its SWS by 11.3%, with Jollibee and Mang Inasal increasing by 13.3% and 13.9%, respectively.
The international business reported a 32.6% SWS growth as the coffee and tea segment saw a 68.6% improvement led by South Korean coffee chain Compose Coffee.
Revenue climbed by 15.5% to P77.63 billion while operating income rose by 19.1% to P6.04 billion.
“The Jollibee Group delivered strong financial results for the second quarter, with both revenue and profit growth accelerating compared to the first quarter — reflecting our continued business momentum and improved operational execution,” JFC Chief Executive Officer Ernesto Tanmantiong said.
“This operating income growth highlights the strength of our coffee and tea segment and sustained contributions of our Philippine business and Jollibee International, underscoring the effectiveness of our multi-brand and multi-market strategy,” Mr. Tanmantiong said.
Same-store sales growth (SSSG) for the quarter reached 5.5%. SSSG of the Philippine business increased by 6.4% while SSSG of the international business grew by 4.1%.
“Our strong operating results this quarter reflect not only the positive impact of our strategic acquisition but also the underlying resilience of our business,” Jollibee Group Chief Financial and Risk Officer Richard Shin said.
“Disciplined execution of both our cost optimization initiatives and portfolio innovation efforts helped stimulate growth and profitability. The expansion in operating margin and earnings underscores the effectiveness of our strategy,” he added.
For the first half, JFC saw a 0.7% drop in attributable net income to P5.62 billion from P5.66 billion a year ago.
SWS increased by 19.2% to P217.74 billion while revenue went up by 15% to P147.85 billion. Operating income also grew by 18.4% to P10.85 billion.
Mr. Shin said JFC will continue to “selectively deploy” capital expenditures, with a focus on supporting the growth of the Philippine business, Jollibee international, and coffee and tea segment.
“This balanced approach ensures that our investments are aligned with both strategic priorities and return objectives,” he said.
Mr. Shin noted that JFC’s China business is showing early signs of recovery, marking a potential turnaround in performance.
He added that Smashburger has a “clearly defined path” toward improving financial performance, supported by operational improvements, product innovations and conversion of company owned stores to franchised stores.
On the coffee and tea business, Mr. Shin said that Compose Coffee is set to surpass 3,000 stores.
“Compose Coffee remains on track to deliver a 36% return on invested capital in 2025, demonstrating the value-creating potential of this acquisition,” he said.
“The coffee and tea segment continues its upward trajectory, emerging as one of the fastest growing segments. Expansion across key geographies is driving incremental revenue and margin enhancement,” he added.
As of end-June, JFC increased its store network by 45.5% to 10,119, consisting of 3,424 stores domestic stores and 6,695 international stores.
The international stores consist of 547 in China, 357 in North America, 400 in Europe, the Middle East, and Africa, 896 with Highlands Coffee mainly in Vietnam, 1,261 with The Coffee Bean and Tea Leaf, 346 with Milksha, 2,809 with Compose Coffee, and 79 with Tim Ho Wan.
JFC shares rose by 2.33% or P5 to P220 per share on Thursday. — Revin Mikhael D. Ochave