Jollibee Q1 earnings dropped 39% to P1.47B
Jollibee Foods Corp. (JFC) saw its first-quarter net income attributable to equity holders of the parent company fall by 38.8 percent as elevated commodity costs and supply chain pressures weighed on profitability despite strong sales growth.
In a disclosure on Tuesday, the listed fast-food giant said attributable net income declined to P1.47 billion in the January-to-March period from P2.41 billion a year ago.
Earnings per share likewise dropped by 40.4 percent to P1.234.
JFC said the weaker bottom line reflected lower operating profit and “unfavorable below-the-line items” amid a challenging operating environment.
“First-quarter profitability was impacted by temporary cost pressures. Underlying demand across the business remained healthy. We view these headwinds as manageable, supported by disciplined cost controls, ongoing productivity initiatives and targeted margin recovery actions across our brands and markets,” said Richard Shin, chief financial and risk officer of JFC.
Operating income dropped by 18.2 percent to P3.95 billion, while earnings before interest, taxes, depreciation and amortization slipped 4.9 percent as higher direct costs offset strong top-line growth.
The company said direct costs rose 11.7 percent due to inflationary pressures affecting commodities and supply chain inputs, partly driven by recent geopolitical developments.
Despite margin pressures, JFC’s consolidated revenues climbed 9 percent to P76.5 billion, while systemwide sales (SWS) grew 10.3 percent year-on-year.
The Philippine business posted 8-percent SWS growth, driven by Mang Inasal’s 16.1-percent expansion and Jollibee’s 7.6-percent growth.
International operations grew even faster at 13.5 percent, supported by brands such as Compose Coffee, Highlands Coffee, Tim Ho Wan and Milksha.
