Jollibee Foods Corp. · PSE:JFC
Jollibee Foods — Q2 2023 Earnings Presentation
22 slides from Jollibee Foods's earnings presentation, August 2023
Slide 1: Jollibee Foods Corporation Q2 / H1 2023 Results
Jollibee Foods Corporation Q2 / H1 2023 Results August 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: Summary
Summary
Slide 4: Q2 / H1 2023 Highlights
Q2 / H1 2023 Highlights PH business delivers another quarter of strong sales Strong topline leading to record high and operating profit growth (Q2 OPM 10.2%) operating income China’s topline soars delivering incremental positive EBITDA NA Q2 boosted by Smashburger (+13.4% SWS/ +8.3% RB) 270 new stor
Slide 5: Topline & Network
Topline & Network
Slide 6: Q2 2023 record high Q2 topline with highest ever International SWS
Q2 2023 record high Q2 topline with highest ever International SWS System Wide Sales in Php Bn 100.0 90.0 85.9 85.5 77.8 78.6 80.0 72.7 73.1 70.0 62.0 59.0 59.4 60.0 60.0 57.4 53.9 53.3 54.3 55.2 53.9 50.5 51.4 52.2 48.4 49.5 47.8 50.0 46.0 47.6 45.6 45.1 43.8 43.7 39.5 39.4 41.2 40.6 40.0 36.0 37.2
Slide 7: All regions maintained positive SWS and SSS growth versus H1 2022
All regions maintained positive SWS and SSS growth versus H1 2022 Q2 SSS growth driven by TC (+6.5%) and AC (+2.4%) NAAB: JBUS +7.2%/+6.3% RB Q2/H1, JBCA (FX), CK/RR softer CBTL: Strong reopening of borders in SG & MY in 2022 creating a high base HLC: VN macro headwinds. Ahead of competition: HLC AD
Slide 8: Store network expansion on-track to plan & guidance
Store network expansion on-track to plan & guidance, with International and Coffee and Tea segment leading the expansion COO – FRA 33% SPLIT PH 47% Global 43% IO 53% 57% COO 67% FRA
Slide 9: Financial Summary
Financial Summary
Slide 10: Q2 2023 achieved record-high operating income driven by sustained topline growth
Q2 2023 achieved record-high operating income driven by sustained topline growth despite high base effect Key Financial Highlights 2023 vs 2022 for quarter and semester ending June 30 1 Excludes one-off gain on land conveyance / sale of other properties: Php 1.1Bn in Q2 2022 and Php 2.9Bn in H1 2022
Slide 11: Significant improvement in underlying EBITDA, Net Income and EPS
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 Adjusted Q2 / H1 2022 exc
Slide 12: EBITDA by Region/Business Segment
EBITDA by Region/ Business Segment
Slide 13: China and Smashburger turnaround and cash generation evident with EBITDA improvement
China and Smashburger turnaround and cash generation evident with EBITDA improvement in International Operations EBITDA by Region/Business Unit International operations’ EBITDA contribution to Group increased from 11.8% to 29.0% from Q2 2022 to Q2 2023, driven by improvements in EMEA , Jollibee US a
Slide 14: KPI
KPI
Slide 15: GPM resilient despite inflation, significant improvement across other KPI metrics
GPM resilient despite inflation, significant improvement across all other baseline KPI metrics Q2 Key Performance Indicators 18.0% 17.9% Gross Profit Margin slightly improved driven by 180bps expansion in GPM of International 13.7% Business 12.9% 12.8% Operating Profit Margin increased 9.9% driven b
Slide 16: A&P Margins sustained despite increase in total ads spending in H1
A&P Margins sustained despite increase in total ads spending in H1 Quarterly Ads Spending as % to SWS Quarterly Ads Spending as % to Revenues 3.2% 4.5% 2.4% 2.4% 2.4% 3.3% 3.4% 3.4% 2.0% 1.8% 2.8% 2.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2022 2023 2022
Slide 17: Group and PH Business continue to deliver record-high profitability margins
Group and PH Business continue to deliver record-high profitability margins (OPM) Operating Income (in PHP Bn) and Operating Income Margin (in percentages) 6.0 15.0% 10.0% 4.0 5.0% 0.0% 2.0 Operating Income (In Php Bn) -5.0% % to Revenue 0.0 -10.0% -15.0% -2.0 -20.0% -25.0% -4.0 -30.0% -6.0 -35.0% Q
Slide 18: FCF & Balance Sheet
FCF & Balance Sheet
Slide 19: Significant cash position improvement despite inflation and selective CAPEX
Significant cash position improvement, despite Food & Packaging inflation and selective CAPEX investments (Peso5B in H1) Free Cash Flow The improvement in the underlying EBITDA and increased cash generation from operations demonstrate that JFC is well-positioned to continue investing for growth and
Slide 20: Fortified Balance Sheet metrics amidst inflation and interest hikes
Fortified Balance Sheet metrics amidst inflation and interest hikes Key Balance Sheet Metrics Balance Sheet remains strong vs end of LY Cash: robust, with most operating entities cashflow positive to support operational needs Working capital: solid amidst macro uncertainties in supply network Debt c
Slide 21: On Track to Exceed 2023 Guidance
On Track to Exceed 2023 Guidance 2023 Targets H1 2023 Actuals Store network increase of at least 5% versus 2022; Store network increase of 5.1% versus H1 2022; Gross store opening of 550 to 600 stores across the globe; Gross store opening of 270 stores across the globe; Capital expenditure to be Php
Slide 22: Jollibee Foods Corporation Q2 / H1 2023 Results
Jollibee Foods Corporation Q2 / H1 2023 Results August 2023