Jollibee net income up 109% in second quarter

Homegrown food chain giant Jollibee Foods Corp. (JFC) saw its bottom line surge by over 100% in the second quarter, following the loss incurred the same period last year when the strictest quarantines were in place.

In a regulatory filing, JFC reported a net income attributable to equity holders of P976 million to reflect a 109.5% increase from the P10.287-million loss in the same quarter last year.

Diluted earnings per share also climbed 109.5% to P0.884 versus the loss of P9.319 the same quarter last year, as system-wide sales jumped 64.7% to P50.517 billion from P30.678 billion.

Same store sales for the quarter increased by 48.0% in the Philippines, 48.0% in China, 27.7% in North America, and 21.2% in Europe, the Middle East, and other parts of Asia.

“All regions achieved significant profit and operating cash flow improvement versus year ago levels. Gross profit margins, general and administrative expenses and operating profit margins also showed marked improvement,” JFC said.

Total system-wide sales were 15% below pre-pandemic levels, and revenues down by 16%, while gross profit margins, operating margins, and net income margins were higher than pre-pandemic levels.

“The improvement in profitability ratios was driven by the growing contribution of foreign business to total sales, the higher contribution of the coffee business to the business portfolio, the increasing contribution of franchise stores versus company stores, and the cost improvement brought by the Business Transformation implemented in 2020,” JFC said.

JFC’s Business Transformation program includes the permanent closure of 486 non-profitable stores worldwide and four commissaries in the Philippines. It also involves the improvement of operating expenses in the remaining stores and supply chain facilities, and various other cost-saving initiatives.

The ended the second quarter with a total of 5,816 outlets covering 17 brands in 33 countries. This includes Jollibee stores with 1,487; The Coffee Bean & Tea Leaf with 1,051; Chowking with 607; Mang Inasal with 585; Red Ribbon with 527; Highlands Coffee with 476; Yonghe King with 364; Greenwich with 270; and Smashburger with 239.

Shares of JFC were trading up P4.20 or 2.18% at P196.70 apiece as of 11:06 a.m.—AOL, GMA News