Jollibee Foods Corp. · PSE:JFC
Jollibee Foods — FY2023 Earnings Presentation
33 slides from Jollibee Foods's earnings presentation, Mar 15, 2024
Slide 1: Jollibee Foods Corporation Q4 and FY 2023 Earnings Call
Jollibee Foods Corporation Q4 and FY 2023 Earnings Call CFO’s Update March 15th, 2024
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: CFO Key Message (1/3)
CFO Key Message (1/3) 1. Record High Performance (Quarter and Full Year) i. Systemwide Sales: • Q4: Php 94.2Bn, +9.6% vs. LY, +8.4% QoQ • FY: Php 345.3Bn +16.3% vs. LY 3
Slide 4: CFO Key Message (1/3)
CFO Key Message (1/3) 1. Record High Performance (Quarter and Full Year) i. Systemwide Sales: • Q4: Php 94.2Bn, +9.6% vs. LY, +8.4% QoQ • FY: Php 345.3Bn +16.3% vs. LY ii.Revenues: • Q4: Php 66.7Bn, +8.4% vs. LY and +8.4% QoQ • FY: Php 244.1Bn +15.2% vs. LY 4
Slide 5: CFO Key Message (1/3)
CFO Key Message (1/3) 1. Record High Performance (Quarter and Full Year) i. Systemwide Sales: • Q4: Php 94.2Bn, +9.6% vs. LY, +8.4% QoQ • FY: Php 345.3Bn +16.3% vs. LY ii.Revenues: • Q4: Php 66.7Bn, +8.4% vs. LY and +8.4% QoQ • FY: Php 244.1Bn +15.2% vs. LY iii.Gross Profit • Q4: Php 13.1Bn, +16.6%
Slide 6: CFO Key Message (1/3)
CFO Key Message (1/3) 1. Record High Performance (Quarter and Full Year) i. Systemwide Sales: • Q4: Php 94.2Bn, +9.6% vs. LY, +8.4% QoQ • FY: Php 345.3Bn +16.3% vs. LY ii.Revenues: • Q4: Php 66.7Bn, +8.4% vs. LY and QoQ • FY: Php 244.1Bn +15.2% vs. LY iii.Gross Profit • Q4: Php 13.1Bn, +16.6% vs. LY
Slide 7: Ads seasonally trending up in Q4 – FY within guidance
Ads seasonally trending up in Q4 – FY within guidance Ads Spending Quarterly Progression Percent (%) of SWS 3.6% 3.5% 3.7% 3.9% 4.1% as % of Revenue 4.0% 3.8% 3.7% 3.5% 3.3% 3.2% 3.0% 3.1% 2.9% 3.0% 2.9% 3.0% 2.8% 2.9% 2.7% 2.6% 2.6% 2.6% 2.5% 2.5% 2.4% 2.5% 2.4% 2.4% 2.4% 2.1% 2.1% 2.0% 2.0% 1.8% 1
Slide 8: CFO Key Message (2/3)
CFO Key Message (2/3) 1. Record High Performance (Quarter and Full Year) i. Systemwide Sales: • Q4: Php 94.2Bn, +9.6% vs. LY, +8.4% QoQ • FY: Php 345.3Bn +16.3% vs. LY ii. Revenues: • Q4: Php 66.7Bn, +8.4% vs. LY and QoQ • FY: Php 244.1Bn +15.2% vs. LY iii. Gross Profit • Q4: Php 13.1Bn, +16.6% vs.
Slide 9: Jollibee is the 2nd fastest-growing brand in the 2024 ranking
Jollibee is the 2nd fastest-growing brand in the 2024 ranking, brand value surging by +51% to USD2.3Bn
Slide 10: Jollibee 5th strongest global restaurant brand (rated AAA)
Jollibee 5th strongest brands global restaurant brand (rated AAA), outpaces Top 5
Slide 11: CFO Key Message (3/3)
CFO Key Message (3/3) 1. Record High Performance (Quarter and Full Year) i. Systemwide Sales: • Q4: Php 94.2Bn, +9.6% vs. LY, +8.4% QoQ • FY: Php 345.3Bn +16.3% vs. LY ii. Revenues: • Q4: Php 66.7Bn, +8.4% vs. LY and QoQ • FY: Php 244.1Bn +15.2% vs. LY iii. Gross Profit • Q4: Php 13.1Bn, +16.6% vs.
Slide 12: ESG Rating History
ESG Rating History AAA AA A BBB BB BB B BB CCC CCC CCC CCC Aug -19 Jun -20 Oct -21 Oct -22 Nov -23 12
Slide 13: JFC – Q4 & FY 2023 Performance Summary
JFC – Q4 & FY 2023 Performance Summary
Slide 14: Summary of Key Metrics
Summary of Key Metrics Note: Percentages are versus SPLY unless stated otherwise SWS SSSG Stores Q4 ‘23 FY ‘23 Q4 '23 FY '23 6,885 Php94.2Bn Php345.3Bn +5.4% +10.6% +6.3% TC +3.2% TC +7.0% +9.6% +16.3% AC +2.1% AC +3.4% Opened Closed Divested 658 225 28 Revenues Gross Profit Net Operating Income Q4
Slide 15: Q4 SWS (Php94Bn) +9.6% vs. LY, +8.4% QoQ
Q4 SWS (Php94Bn) +9.6% vs. LY, +8.4% QoQ Systemwide Sales in PHP billions Global All-time highest Highest vs similar quarters Philippines 94 International 86 87 85 78 79 73 73 62 59 59 57 60 36 54 55 54 53 32 51 33 34 50 51 24 48 31 46 28 33 15 16 16 41 14 15 16 25 10 19 25 31 20 21 22 20 19 16 36 3
Slide 16: Topline Metrics for Q4 and FY ended 2023
Topline Metrics for Q4 and FY ended 2023 Key Topline Metrics 2023 vs 2022 for quarter and year ended December 31 Quarter-to Date Year-to Date New New G% vs. LY SWS SSS Forex SWS SSS Forex Stores Stores Philippines 8.9 5.4 3.5 - 17.6 13.9 3.8 - China 15.1 22.2 (3.2) (3.8) 21.9 12.4 12.4 (2.9) North A
Slide 17: PH Market SWS & SSSG: QoQ and vs. LY
PH Market SWS & SSSG: QoQ and vs. LY Q3 2023 Q4 2023 SWS in Php Bn SWS in SWS in SWS G% SSSG SWS G% SSSG Q3 2023 Q4 2023 Change QoQ G% Php Bn Php Bn Philippines Champion Brands Jollibee 32.2 17.5% 14.1% 35.8 10.4% 7.1% 32.2 35.8 3.6 11.2% Chowking 6.3 16.9% 16.0% 6.9 7.8% 6.6% 6.3 6.9 0.6 9.0% Mang
Slide 18: Drivers and Timing of Operating Expenses
Drivers and Timing of Operating Expenses Q4 Q3 Change 2023 2023 ∆Php % Operating income 2.5 4.3 (1.8) (41.8) Drivers of Increase in GAEX for Q4 vs Q3 2023 1 Taxes and licenses 1.1 0.6 0.5 79.9 2 Corporate events and others 1.7 0.6 1.1 193.4 3 A&P 2.4 0.8 1.6 199.9 Total 5.2 2.0 3.2 161.7 Notes: 1 Wi
Slide 19: Financial Details
Financial Details
Slide 20: Key Financial Highlights 2023 vs LY
Key Financial Highlights 2023 vs LY Q4 %G FY %G in Php Bn 2023 vs LY 2023 vs LY System Wide Sales 94.2 9.6 345.3 16.3 Philippines Q4 and FY GPM at 21.0% and 19.1%, Revenues 66.7 8.4 244.1 15.2 respectively Gross Profit 13.1 16.6 45.3 22.6 FY Global Q4 and FY GPM Operating Income 2.5 33.2 14.4 45.0 a
Slide 21: Strong bottomline, delivering robust shareholder returns
Strong bottomline, delivering robust shareholder returns Key Bottomline Metrics 2023 vs 2022 for quarter and year ended December 31 Q4 %G FY %G in Php Bn 2023 vs LY 2023 vs LY EBITDA 9.3 13.9 33.8 8.3 Net Income 1.8 5621.1 9.0 22.4 NIAT 1.9 508.0 8.8 16.0 EPS - Basic 1.641 782.3 7.455 16.5 EPS - Dil
Slide 22: Q4 2023 – Key Metrics Ahead of PY
Q4 2023 – Key Metrics Ahead of PY FY percentages to Revenues 0.5 5.3x 2022 2023 3.7x 0.4 19.7% 18.3% 10.8% 3.1% 3.8% 2.9% 2.8% 0.5% Gross Profit Margin Operating Profit NIAT Margin Free Cash Flow Margin FCF:NIAT Margin GPM improvement driven by efficiencies in cost of inventories and manufacturing c
Slide 23: FY Key Metrics – 100% Ahead of Prior Period
FY Key Metrics – 100% Ahead of Prior Period as percentages to Revenues 3.0x 2022 2023 18.6% 1.9x 17.4% 10.7% 6.7% 5.9% 4.7% 3.6% 1.3% Gross Profit Margin Operating Profit Margin NIAT Margin Free Cash Flow Margin *2022 NIAT Margin normalized without one off gains 25
Slide 24: Capital Allocation, Cash & Balance Sheet
Capital Allocation Cash & Balance Sheet
Slide 25: 2023 CAPEX Breakdown/Usage
2023 CAPEX Breakdown/Usage Php 11.3Bn +27% 13% Highlands Php 9.7Bn Coffee Philippines , 10% 14% 42% 5% 14% CBTL , 19% Store Operations FY2023 Commissary Php 11.3Bn Main Office 77% 81% EMEA , 4% N. America , China , 3% 19% FY2022 FY2023 27
Slide 26: 2024 Planned CAPEX Breakdown/Usage
2024 Planned CAPEX Breakdown/Usage Note: Capex Breakdown per Management Report view Php 20 to 23Bn Highlands Coffee 13% 18% +27% 16% CBTL 12% Php 11.3Bn Philippines FY2024 58% EMEA 13% 5% Php 20 to 23Bn 10% Store Operations 66% N. America Commissary 8% 77% Main Office China 4% FY2023 FY2024 28
Slide 27: Fortified Balance Sheet and Credit Profile
Fortified Balance Sheet and Credit Profile Balance Sheet Financial Obligations Profile amounts in Php Bn (unless stated otherwise) FY2023 FY22 Financial Obligations Type Split Cash and Cash Equivalents Bank loans 21.3% Senior bonds 39.0% and Short-term Investments 33.9 29.5 Debt-accounted 60.2% Fina
Slide 28: Cost-efficient Capital Structure
Cost-efficient Capital Structure VND, SGD, MYR Php2.9B PHP 3.4% Php22.4B Amounts in PHPm FY 2022 FY 2023 26.2% Loans 10.4 Financing cost 3,546 3,885 USD Interest paid on debt 2,231 2,560 Php60.4B Preferred BY CURRENCY 12.0 Dividends paid on perpetual bond 835 844 Shares Dividends paid on preferred s
Slide 29: 2023 Guidance Recap
2023 Guidance Recap FY2023: SWS Growth +16% and RB Growth of +11% External Guidance: SWS Growth of 15% to 20%; RB Growth of 7% to 10% FY2023: 6% Store Network Growth, 658 new stores and Php11.3Bn Capex External Guidance: Store network increase of at least 5%; Global gross store opening of 550 to 600
Slide 30: 2024 Guidance
2024 Guidance SWS Growth: 10% to 14% RB Growth: 5% to 7% Store Network Growth: 7% to 8% 700 to 750 new stores Php20 to 23Bn Capex Operating Income Growth of 10% - 15% Php15.9Bn to 16.5Bn 32
Slide 31: JFC Strategic Choices
JFC Strategic Choices Triple the Value (NIAT) Scale the business with Four Big Bets Expand Become Global Leader in Coffee & Exponentially Grow Grow & Dominate Philippines Jollibee International Tea in China Build a global brand and accelerate Build coffee & tea through world Exponentially grow in Ch
Slide 32: Ernesto Tanmantiong, CEO, Jollibee Foods Corporation
Ernesto Tanmantiong CEO, Jollibee Foods Corporation 34
Slide 33: Jollibee Foods Corporation
Jollibee Foods Corporation Q4 and FY 2023 Earnings Call CFO’s Update March 15th, 2024