Jollibee’s Q1 profit surged 27% on stronger sales
Despite decline in China

Jollibee’s Q1 profit surged 27% on stronger sales

/ 03:07 AM May 15, 2024

MANILA, Philippines — Stronger sales from local and international branches boosted the first-quarter earnings of tycoon Tony Tan Caktiong’s Jollibee Foods Corp. by 27 percent to P2.62 billion despite declines in the China market.

The homegrown company’s stock exchange filing on Tuesday showed that revenues in the January to March period jumped by 11.3 percent to P61.3 billion as systemwide sales climbed by a tenth to P86.8 billion.

“We are slightly ahead of our guided growth rates,” Jollibee Group chief financial officer Richard Shin said in a statement.


“Our business fundamentals are strong, and we are poised to continue our growth trajectory, leveraging the strength of our brands and strategic investments to support our long-term growth,” Shin said.


Domestic systemwide sales grew by 6.9 percent, while the international business inched up by 3.2 percent led by operations in the Europe, the Middle East Africa region, and North America.

Sales in China

Sales in China slipped by 3.7 percent due to weak consumer spending power, according to Jollibee. Currently, the company has 553 stores in China across its various brands.

The company known for its popular Chicken Joy meals also owns other local brands such as chicken barbecue chain Mang Inasal, and global brands like Coffee Bean and Tea Leaf (CBTL), Tim Ho Wan, and Smashburger.

READ: Jollibee brands sprout across China, the group’s new playground

As of end-March, the group had 6,886 stores worldwide, with the majority, or 3,549, located overseas.

Jollibee last month said it would have a 90-percent participating interest in Titan Dining II LP, a private equity fund based in Singapore, to bring new food and beverage brands in Asia. The group committed to invest up to P3.75 billion in capital.


“While Titan Fund II has not made investments yet, it will focus on strategic investments in food and beverage concepts with the objective to further grow Asia-Pacific food service brands and/or bring strong global food service brands to Asia-Pacific,” Shin said.


Also, Jollibee took an interest in US-based beverage technology developer Botrista Inc., shelling out $28 million for a 10-percent ownership stake.

READ: JFC buying 10% stake in US-based Botrista 

Jollibee hopes to further grow its coffee and tea business under CBTL and Highlands Coffee through its investment.

“We will capitalize on these important opportunities to grow our business with strategic partners and investments, and continue to create both near- and long-term value for stakeholders,” Shin added.

Based on its performance in the first three months, Jollibee is targeting a full-year systemwide sales growth of 10 to 14 percent.

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The company also plans to open up to 750 new stores with capital expenditure ranging from P20 billion to P23 billion. —Meg J. Adonis INQ

TAGS: jollibee, Profit

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