Jollibee Foods Corporation (PSE: JFC) has reported its financial results for the first quarter ended March 31, 2023.
According to JFC CEO Ernesto Tanmantiong, the company’s financial results reflect continued strong momentum, delivering another quarter of strong topline and operating income growth.
System-wide sales (SWS) and revenues for the quarter rose by 31.1% and 28.5%, respectively, while operating profit grew by 80.9%.
SWS growth was broad-based with all brands posting strong double-digit growth compared to the first quarter of 2022. Same store sales grew by 22.4%, with the Philippine business growing by 31.6% and the international businesses by 8.8%.
JFC opened 111 stores and grew its store network by 4.7% compared to the previous year, putting the company on track to achieve its 550-600 new store target for 2023.
JFC’s operating income for the quarter was PHP 3.6 billion, an increase of 80.9%, resulting in an operating income margin improvement of 190 bps.
The company’s gross profit margin expanded from 16.1% in Q1 2022 to 18.2% in Q1 2023 driven by a 280 bps improvement in store and manufacturing costs, partially offset by an 80 bps increase in the cost of inventory due to higher raw material and supply chain costs.
The company’s net income attributable to equity holders of the Parent Company declined by 10.6% to PHP 2.1 billion, while earnings per share (EPS) likewise declined by 11.8% to PHP 1.749.
Excluding the impact of the one-off gain in Q1 2022, net income attributable to equity holders of the Parent Company and EPS grew by 331.9% and 431.2%, respectively.
JFC Chief Financial Officer, Mr. Richard Shin, said the company remains focused on continued improvement in its business fundamentals, which resulted in sustained gross profit margin expansion and significant growth in underlying profit performance.
He added that the company is confident in its ability to execute its strategies and deliver its financial goals for 2023.
The JFC Board of Directors approved the declaration of a regular cash dividend of PHP 1.07 per share of common stock for all shareholders of record as of May 3, 2023. The payment date will be on May 22, 2023.
The disclosure contains forward-looking statements that are based on certain assumptions of Management and are subject to risks and opportunities or unforeseen events.
Actual results could differ materially from those contemplated in the relevant forward-looking statement, and the JFC Group gives no assurance that such forward-looking statements will prove to be correct or that such intentions will not change.
Overall, JFC’s first-quarter financial results are a positive sign for the company, with continued strong growth across its business segments.
Despite continued macro challenges, the company remains confident in its ability to deliver another year of strong growth. – BusinessNewsAsia.com