JFC net income skyrockets to $43.9m in Q1 2022

The increase from $2.9m in Q1 2021 is backed by property transfer and sales.

Foodservice company, Jollibee Foods Corporation (JFC) posted an attributable net income of around $43.9m (P2.3b) in the first quarter of 2022 from $2.9m (P152.6m) in the same period in 2021, supported by property sales.

In a disclosure to the Philippine bourse, JFC said the net income during the period included the gains from the transfer of certain land properties of the group to CentralHub, as well as the sale of other land properties for $34.3m (P1.8b).

The property transfer to CentralHUb is part of the group's investment plan in the industrial real estate firm as approved by the JFC Board of Directors on 7 July 2021.

JFC also saw its system-wide sales or all sales from both company-owned and franchised stores, rose by 25.5% year-on-year (YoY) to $1.1b (P60b) on the back of strong same sales growth of 16.5% and global store network expansion and new acquisitions.

The system-wide sales included the sales of Taiwanese bubble tea brand Miksha, wherein JFC completed the acquisition of a 51% stake in Milksha owner Milkshop International Co. Ltd., through its 100%-owned subsidiary Jollibee Worldwide, Pte. Ltd.
Global same-store sales, meanwhile, were up by 16.5% YoY led by The Coffee Bean and Tea Leaf (CBTL) which rose by 23.2%, the Philippines business (22.9%), North America (8.1%), and Europe, Middle East and Asia (6.2%). The China business same-store sales were down 9.1% due to the pandemic-related restrictions on key cities.

Its operation income also jumped by 33.8% YoY to (P2b),” JFC said.

“Despite the challenges brought about by the surge in Omicron variant in some markets where JFC operates and the increase in prices of raw materials and energy, our business performed well and even set new record for sales for a first quarter,” JFC CEO Ernesto Tanmantiong said.

Compared to pre-pandemic levels, total system-wide sales and revenue during the first quarter of 2022 were 10.5% and 6.2% higher, respectively, than in the first three months of 2019. Operating income was higher by 5.2%, whilst net income attributable to equity holders was ahead by 58%.

In the first quarter alone, JFC group opened 107 new stores: 19 in the Philippines, 19 in China, 9 in North America and 13 in Europe, the Middle East, and Asia. SuperFoods and CBTL opened 19 and 28 stores, respectively. 

On the other hand, 58 stores were permanently closed during the quarter: 14 in the Philippines and 44 abroad.

$1 = P52.42