Jollibee regained pace in Q2 to end with flattish first-half

After a slow start this year, fast-food giant Jollibee Foods Corp. (JFC) picked up its profit-making pace in the second quarter, as its new coffee and tea business boosted sales to a record high.

JFC’s net income rose by 5.6 percent to P3.21 billion in the second quarter, reversing the 8.1-percent annual earnings decline in the first quarter.

This brought Jollibee’s first semester attributable net profit to P5.62 billion—just 0.7 percent short compared with the P5.66-billion net income in the same period last year.

“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,” Jollibee Group CEO Ernesto Tanmantiong said.

Consolidated revenues rose by 15.5 percent to P77.63 billion from the past year, driving a 19.1-percent growth in operating income to P6.04 billion.

“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 multibrand and multimarket strategy,” Tanmantiong added.

The group delivered a record-high, system-wide sales of P114.5 billion for the quarter, marking a 19.6 percent increase.

The Philippine business grew by 11.3 percent, with Jollibee and Mang Inasal increasing sales by 13.3 percent and 13.9 percent, respectively.

The international business grew at a faster pace of 32.6 percent, fueled by 68.8 percent surge in the coffee and tea segment.

“This was largely driven by Compose Coffee which accounted for 56.6 percent of the growth,” Tanmantiong said.

For the first semester, system-wide sales grew by 19.2 percent to P217.74 billion.

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Operating margin improved by 30 basis points to 7.8 percent in the second quarter.

Jollibee Group chief financial and risk officer Richard Shin said, “Our strong operating results this quarter reflect not only the positive impact of our strategic acquisition but also the underlying resilience of our business.”

“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. I am particularly pleased with the successful expansion of our international business, which is now making a meaningful contribution to the overall performance,” he added.

At end-June, JFC’s store network increased by 45.5 percent to 10,119, of which 3,424 stores are in the Philippines. Of the 6,695 international stores, 547 are in China, 357 in North America, 400 in Europe and the Middle East.

Also, it has 896 stores with Highlands Coffee 1,261 with Coffee Bean & Tea Leaf, and 346 with Milksha.