Jollibee Foods Corp. · PSE:JFC
Jollibee Foods — Q1 2023 Earnings Presentation
21 slides from Jollibee Foods's earnings presentation, May 12, 2023
Slide 1: Jollibee Foods Corporation Q1 2023 Earnings Call
Jollibee Foods Corporation Q1 2023 Earnings Call May 12, 2023
Slide 2: Reminder to Participants of JFC's Investor/Analyst Briefing
Reminder to Participants of JFC’s Investor/ Analyst Briefing: This earnings call may include forward-looking statements that are based on certain assumptions of Management and are subject to risks and opportunities or unforeseen events. Actual results could differ materially from those contemplated
Slide 3: Q1 2023 Highlights
Q1 2023 Highlights Strong top and bottom line growth momentum – Q1 historical highs Revenue +28.5% SWS +31.1% Same Store Sales +22.4% Operating Income +80.9% China’s topline recovers SWS (+20.7%) and RB sales (+12.5%) 111 new stores (PH 17; IO 94)
Slide 4: Seasonality consistently indicates Q1 is the low season
Seasonality consistently indicates Q1 is the low season
Slide 5: Q1 2023 record high Q1 topline contributed by COVID recovery in PH and continued International growth
Q1 2023 record high Q1 topline contributed by COVID recovery in PH and continued International growth
Slide 6: Sales growth was broad-based, with all regions posting strong SWS and Same Store Sales
Sales growth was broad-based, with all regions posting strong SWS and Same Store Sales Growth versus Q1 2022 SSS growth driven by TC (+15.1%) and AC (+6.3%)
Slide 7: Stronger SWS growth vs 2019 (pre-COVID) led by international SSS growth
Stronger SWS growth vs 2019 (pre-COVID) led by international SSS growth, with strong NA and CN recovery
Slide 8: CN showing signs of improvement in February and March following easing of COVID-related restrictions
CN showing signs of improvement in February and March following easing of COVID-related restrictions January 2023 vs January 2022 New Stores Impact of FOREX SWS G% SSS G% Contribution on SWS Yonghe King (3.3) (5.6) 1.8 0.5 Hong Zhuang Yuan (35.0) (36.1) 0.6 0.5 Tim Ho Wan 98.6 (2.9) 101.0 0.5 China
Slide 9: Global SWS by Channel
Global SWS by Channel SWS by Business Channel Channel i Q1 2019 Q1 2022 Q1 2023 Dine-in Takeaway Delivery Drive-thru • Dine-in sales increased by 68% vs SPLY and exceeded pre-pandemic levels • Off-premise channels grew by 12% YoY; Takeaway and Delivery increased by 16% and 11% respectively while Dri
Slide 10: Accretive Digital Sales for Q1 2023 (+13%)
Accretive Digital Sales for Q1 2023 (+13%) Online Delivery SWS Amounts in Php Bn Digital Sales account for 18% of total sales for Q1 2023, significant improvement from pre-pandemic level of 4%; Digital sales had lower channel mix Philippines 6.7 7.3 contribution vs SPLY due to dine-in sales recovery
Slide 11: Store network expansion on track to plan & guidance, with International leading the expansion
Store network expansion on track to plan & guidance, with International leading the expansion COO – FRA 33% SPLIT 43% PH 48% IO 52% Global 57% COO 67% FRA
Slide 12: Q1 2023 delivered sustained strong topline driving record-high Operating Income
Q1 2023 delivered sustained strong topline driving record-high Operating Income 1 Excludes one-off gain on land conveyance / sale of other properties Php 1.8Bn
Slide 13: EBITDA by Region/Business Unit
EBITDA by Region/Business Unit I o op o s’ EBI A co b o o G o p c s d f om . o . f om Q1 2022 to Q1 2023, driven by improvements in SB and accelerated growth from HLC 1 PH Business EBITDA for Q1 2022 inclusive of Php 1.8Bn gain on land conveyance and sale of other properties. Excluding the one-off g
Slide 14: The significant improvement in underlying EBITDA, Net Income and EPS reflects JFC's continued focus
The significant improvement in underlying EBITDA, Net Income and EPS reflects JFC's continued focus on improving its business fundamentals and ability to deliver its financial goals For comparison purposes only 1 Amounts in Php Millions, except % change and Per Share data 2 Excludes one-off gain on
Slide 15: Key Performance Indicators
Key Performance Indicators Gross Profit Margin 18.2% expansion driven by 280 bps 16.1% 16.5% improvement in store and manufacturing costs 13.8% 12.2% Operating Profit Margin improvement mainly from strong GPM 7.4% 6.5% EBITDA Margin improved 4.6% by 160 bps versus adjusted 3.1% Q1 2022 EBITDA (exclu
Slide 16: Gross Profit Margins remained resilient despite inflationary pressures
Gross Profit Margins remained resilient despite inflationary pressures Q1 2023 reached all time high Q1 for Group and International 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 2023 PH 17.6% 18.5% 15.0% 20.6% 17.5% 16
Slide 17: Highest recorded Operating Income with record Q1 OPM for Group, PH and International
Highest recorded Operating Income with record Q1 OPM for Group, PH and International 5.0 15.0% 4.0 10.0% 3.0 5.0% 2.0 0.0% Operating Income (In Php Bn) 1.0 -5.0% % to Revenue 0.0 -10.0% -1.0 -15.0% -2.0 -20.0% -3.0 -25.0% -4.0 -5.0 -30.0% -6.0 -35.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q
Slide 18: Free Cash Flow
Free Cash Flow In Php Mn Q1 2023 Q1 2022 EBITDA 7,588 7,070 Adjustments: The improvement in the Gain on land conveyance and disposal - 1,831 underlying EBITDA and Marked-to-market gain (loss) on FVTPL 125 (485) increased cash Foreign Exchange gain (loss) - net (22) 202 generation demonstrate Underly
Slide 19: Balance Sheet
Balance Sheet 1Q23 FY22 Amounts in Php Mn Balance Sheet remains strong vs end of LY Cash and cash equivalents short-term investments 29,392 29,488 Cash: robust, with most operating entities Financial Assets at FVTPL 8,160 8,251 cashflow positive to support operational needs 1 Bank Loans 52,561 53,92
Slide 20: Forward Guidance – 2023 Targets
Forward Guidance – 2023 Targets Store network increase of at least 5% versus 2022; Gross store opening of 550 to 600 stores across the globe; Capital expenditure to be Php17Bn to 19Bn Systemwide sales to be up by 15% to 20% with same store sales growth from 7% to 10% Operating income growth range of
Slide 21: Jollibee Foods Corporation Q1 2023 Earnings Call
Jollibee Foods Corporation Q1 2023 Earnings Call May 12, 2023