spot_img
29.5 C
Philippines
Friday, June 13, 2025

Jollibee posts 8.1% decline in income on higher costs

Fast-food giant Jollibee Foods Corp. (JFC) saw its net income decline 8.1 percent in the first quarter of 2025 to P2.4 billion from P2.6 billion a year ago as expenses grew faster than revenues.

Consolidated revenues rose by 14.6 percent year-on-year to P70.2 billion, while system-wide sales, which measure total sales generated from franchise and company-owned stores, grew by 18.9 percent to P103.2 billion, driven by strong performance in both domestic and international businesses.

- Advertisement -

Operating income also rose 17.6 percent to P4.8 billion.

“The substantial increase in advertising and promotions drove a 14.6 percent rise in revenues,” said JFC chief financial officer and chief risk officer Richard Shin.

“While NIAT was slightly lower year-over-year, this was primarily due to non-operational factors.”

Expenses jumped 15.6 percent to P8.23 billion while direct costs climbed 16.1 percent to P57.2 billion.

The Philippine business posted strong results with system-wide sales growing by 11.9 percent. Same-store sales also rose by 8.5 percent.

The growth in SWS of the Philippine business was led by Mang Inasal (+15.3 percent), Jollibee (+13.3 percent), Chowking (+9.9 percent) and Red Ribbon (+8.5 percent).

The international business grew faster with system-wide sales increasing by 29.5 percent. This was boosted by the purchase of Compose Coffee and full ownership of Tim Ho Wan.

Compose Coffee accounted for 17.8 percent of the international growth, while the coffee and tea segment grew by 62.2 percent.

The Jollibee Group’s China business declined by 8.3 percent, while Smashburger also registered an 8 percent drop in same-store sales growth due to lower transaction count.

The Jollibee brand performed well in many countries. Sales rose by 27.8 percent in Southeast Asia, 20.2 percent in Oceania, 12.9 percent in China, 12.9 percent in the Middle East and 10.9 percent in both Europe and North America.

“Looking ahead, the Jollibee Group expects continued strong operational performance, and we remain proactive in managing macroeconomic and financial headwinds. We are confident in our strategy and execution, and, accordingly, we are reaffirming our full-year guidance,” Shin said.

LATEST NEWS

Popular Articles