Jollibee reports Q1 net income decline, but sales growth

Jollibee Foods Corp. (JFC) reported an 8.1% decline in first-quarter net income to P2.41 billion, compared to P2.62 billion last year, due to higher non-operational costs.

Systemwide sales increased by 18.9% to P103.2 billion, driven by a 5.5% same-store sales growth and contributions from new stores.

Jollibee Group CEO Ernesto Tanmantiong noted that the Philippine business' SWS grew by 11.9%, led by Mang Inasal (+15.3%), Jollibee (+13.3%), Chowking (+9.9%), and Red Ribbon (+8.5%).

The international business saw a 29.5% increase in SWS, supported by the acquisition of South Korean coffee brand Compose Coffee.

JFC's CFO Richard Shin said that despite the decline in net income, operating income rose by 17.6%, and the company remains confident in its full-year growth targets of 8-12% SWS growth and 4-6% same-store sales growth.

As of end-March, JFC expanded its store network to 9,935 stores globally, with 3,393 in the Philippines and 6,542 internationally.