Jollibee Group books P2.7-billion net income in Q1, up 23.4%

Fast-food giant Jollibee Foods Corporation or Jollibee Group saw its bottom line exceed outlook in the first quarter of 2024.

In a disclosure to the Philippine Stock Exchange, Jollibee Group reported a net income of P2.704 billion in the January to March period, up 23.4% from P2.191 billion in the same period last year.

The company’s revenues also grew by 11.3% to P61.3 billion from P55.09 billion a year earlier.

“Our healthy top line growth combined with further operational efficiencies and effective management of expenses drove expansion of the Jollibee Group’s profit margins,” Jollibee Group CEO Ernesto Tanmantiong said in a statement.

Chief financial officer Richard Shin also said the company is banking on the strength of its brands and strategic investments “to support our long-term growth plans” this year.

“Recently, we announced our investment in Botrista Inc. (Botrista), a company that has developed a robotic drinks solution for the food industry. We are excited about this investment as it provides commercial and strategic synergies with our coffee and tea brands and the opportunity to grow exponentially in one of our key product pillars, the coffee and tea segment,” he said.

“Through Botrista’s DrinkBot machines, we’d be able to increase our distribution footprint in the important US market, at zero to minimal capital expenditure as well as deliver superior commercial returns. Our existing stores can subscribe to Drinkbots and get instant sales lift,” Shin added.

Jollibee Group also has a 90% participating interest in Titan Fund II as limited partners with a capital commitment of S$90 million. 

“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, in line with the Jollibee Group’s four product pillar strategy (i.e., chicken, Chinese cuisine, coffee and tea and better burgers),” Shin said.

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

Jollibee Group is earmarking P20 billion to P23 billion in capital expenditures for 2024 to support its growth and expansion initiatives. — Ted Cordero/BM, GMA Integrated News