Jollibee returns to profitability in third quarter

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JOLLIBEE FOODS Corp. (JFC) booked an attributable net income of P1.57 billion in the third quarter, a reversal of the P1.58-billion net loss it posted in the same period last year, on the back better earnings from its local operations as a result of its business transformation program, the company said in a disclosure on Tuesday.

JFC said the transformation program involves the closure of unprofitable stores, headcount reduction in stores that remain open, closure of four commissaries in the Philippines, and the downsizing of commissary operations, which began in April last year.

The company’s revenues amounted to P37.2 billion in the third quarter, up by 24.1% year on year from P29.97 billion on the back of higher sales. However, this was 13.8% lower than the company’s pre-pandemic topline of P43.18 billion in 2019.

System-wide sales from company-owned and franchised stores went up by 26.6% to P51.39 billion from P40.59 billion in the third quarter. However, this was 10.4% lower than its sales of P57.36 billion in the same period in 2019.

JFC’s same store sales in its Philippine business went up by 32.4% year on year, while sales from its international business rose 12.4%. Worldwide same store growth also improved by 23.6%.

“China grew by 2.9%, North America by 19.6%, [same store sales from] Europe [or] Middle East [and] other parts of Asia by 8.8%, and The Coffee Bean & Tea Leaf (CBTL) by 20.0%,” JFC said.

“SuperFoods declined by 53.1% primarily due to heightened restrictions imposed in Vietnam to prevent the spread of COVID-19 (coronavirus disease 2019),” it added.

The company’s operating income for the quarter amounted to P945 million, a reversal of its P3.35-billion loss in the previous year but 28.3% lower compared to the 2019 level.

For the first nine months, JFC booked an attributable net income of P2.7 billion, a reversal of the P13.54-billion loss it posted in the same period last year.

Jollibee’s topline for the January-to-September period rose 17.1% to P108.57 billion from last year’s P92.73 billion. However, it was 15% lower than the pre-pandemic or 2019 level.

System-wide sales for the first nine months improved by 18.4% to P149.69 billion from P126.42 billion.

JFC launched 249 new stores during the period, the majority or 67 of which were opened in China, 47 in the Philippines, 29 in North America, and 15 in Europe, Middle East, Asia, and Australia region. Meanwhile, SuperFoods opened 48 stores and CBTL launched 43.

Jollibee also opened its first store in Madrid, Spain in September, which is said to be its largest restaurant in Europe as it can accommodate 200 guests.

Meanwhile, the company closed 221 stores permanently in the third quarter — 158 abroad and 63 in the Philippines.

The listed fastfood giant has 17 brands under its belt operating in 34 countries through 5,853 stores, the majority or 3,202 of which are located in the Philippines and 2,651 are overseas.

On Tuesday, JFC’s wholly-owned subsidiary Jollibee Worldwide Pte Ltd. (JWPL) also announced that it has executed the tender offer for a portion of its $600-million guaranteed senior perpetual capital securities. On Nov. 3, the company said $203.5 million have already been validly tendered but not withdrawn, which is 33.9% of the outstanding principal amount.

The offer forms part of the company’s plans to strengthen its balance sheet. It was partially funded by the company’s recent 12 million preferred shares issuance.

Jollibee shares went up by 4.51% or P11.20 to close at P259.80 each on Tuesday. — Keren Concepcion G. Valmonte