Jollibee Foods Corp. · PSE:JFC
Jollibee Foods — Q3 2022 Earnings Presentation
19 slides from Jollibee Foods's earnings presentation, Nov 16, 2022
Slide 1: 2022 Q3 Results Discussion with the CFO
2022 Q3 Results Discussion with the CFO Jollibee Foods Corporation November 16, 2022
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 i
Slide 3: Highlights for Q3 2022
Highlights for Q3 2022 • JFC sustained strong Sales and Profit Growth Highest 3rd Quarter Operating income margin since 2018 driven by sustained Operating Income growth of PH business (+219.6%) i. Strong top line for both PH and international businesses; another record high SWS (SWS +51.3% and Reven
Slide 4: Store Network
Store Network Adjustment Net Openings % Growth vs FY 2021 Open Close and New Sep-30 /(Closures) Year Ago Acquisition Philippines 3,220 64 46 18 - 3,238 1.1 China 460 66 40 26 - 486 14.6 North America 370 23 8 15 - 385 5.8 Philippine Brands 125 15 - 15 - 140 13.8 Smashburger 245 8 8 - - 245 1.7 EMEAA
Slide 5: Quarterly Systemwide Sales in Php Bn
Quarterly Systemwide Sales in Php Bn 80.0 77.8 72.7 73.1 70.0 59.4 62.0 60.0 59.0 60.0 57.4 55.2 53.9 51.4 53.3 54.3 50.5 50.0 49.5 48.4 47.8 45.6 46.0 43.8 43.7 40.6 45.1 40.0 39.5 41.2 39.4 37.5 37.2 35.8 29.3 34.8 36.0 30.0 29.8 29.2 30.7 28 32.6 27.5 20.0 24.3 21.4 24.5 25.2 15.2 21.3 22.1 19.4
Slide 6: Quarterly Gross Profit Margins
Quarterly Gross Profit Margins 24.0% 21.0% 18.0% 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% -3.0% -6.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 YTD 2018 2019 2020 2021 2022 PH 17.6% 18.5% 15.0% 20.6% 17.5% 16.6% 15.1% 19.1% 12.1% -3.3% 11.0% 17.8% 19.1% 16.1% 16.2% 20.0% 17.2% 19.5% 17.4% 18.1
Slide 7: Quarterly Operating Income (Loss)
Quarterly Operating Income (Loss) 6.0 15.0% 10.0% 4.0 5.0% Operating Income (in Php 'B) 3.0 2.0 0.0% 1.9 1.3 % to Revenue 0.9 -5.0% 0.0 -10.0% -2.0 -15.0% -3.3 -4.0 -20.0% -25.0% -6.0 -30.0% -8.0 -35.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 2021 2022 Operating Incom
Slide 8: SWS and SSSG by Region
SWS and SSSG by Region Q3 2022 vs Q3 2021 9M 2022 vs 9M 2021 Region and Segment % Contribution % Contribution SWS G% SSSG% SWS G% SSSG% to Global SWS to Global SWS Philippines 58.0 54.2 48.5 59.5 45.0 41.2 China 7.5 14.2 -4.6 6.4 -0.2 -13.5 North America 13.4 32.5 6.0 13.3 30.3 7.5 EMEAA 6.2 54.6 7.
Slide 9: Channel Sales and Early Consumer Convenience Trends
Channel Sales and Early Consumer Convenience Trends Channel Mix 7% 11% 6% 21% Key Takeaways 28% • Off-premise channels continue (Delivery, Takeaway and Drive-thru) to grow as a channel as aligned with our digital marketing strategy to attract new customers 30% • Digital Sales (Online Delivery mix) r
Slide 10: Summary - Q3 and Sept YTD '22 vs. '21 and '19 (Pre-Pandemic)
Summary - Q3 and Sept YTD ‘22 vs. ‘21 and ’19 (Pre-Pandemic) Amounts in Php Bn except for % change and Quarter 3 YTD per share data 2022 vs. '21 vs. '19 2022 vs. '21 vs. '19 System Wide Sales 77.8 51.3% 35.5% 210.9 40.9% 23.3% Revenues 55.4 49.0% 28.4% 150.4 38.5% 18.2% Gross Profit 9.5 62.7% 43.4%
Slide 11: Profit and Expenses as Percentage to Revenues
Profit and Expenses as Percentage to Revenues Quarter 3 Sep YTD as % of Revenues, change in bps 2022 vs. '21 vs. '19 2022 vs. '21 vs. '19 Gross Profit Margin 17.1% 1.4 1.8 17.1% 0.6 1.0 General and Administrative Expenses as a % to Revenues 9.8% (1.0) (0.2) 10.2% (0.7) (0.1) Operating Income Margin
Slide 12: Domestic and International Business - Key Margins
Domestic and International Business - Key Margins Q3 2022 Sept YTD 2022 Key Metrics Margins as % to Revenues Change Margins as % to Revenues Change 2022 2021 2019 vs. LY vs. 2019 2022 2021 2019 vs. LY vs. 2019 Takeaways: Global Cost of Sales 82.9% 84.3% 84.7% 0 -1.4 -1.8 82.9% 83.5% 83.9% -0.6 -1.0
Slide 13: Other Income - Details
Other Income - Details Q3 Sept YTD Margins as % of Revenues 2022 2021 2019 2022 2021 2019 Other Income Details: Gain on Land conveyance and disposal 4.3% -- -- 3.5% -- -- Mark-to-market gain/loss on assets at FVTPL -0.4% 0.1% -- -0.9% 0.3% -- Write-off of liabilities 0.7% 1.5% 1.2% 0.5% 1.1% 1.1% Pr
Slide 14: Operating Income to NIAT Bridge
Operating Income to NIAT Bridge Q3 Sept YTD Margins as % of Revenues 2022 2021 2019 2022 2021 2019 Operating Income 5.4% 2.5% 3.1% 5.4% 3.5% 3.9% Interest Income/Expense -1.9% -2.2% -1.6% -2.0% -2.6% -1.7% Equity in Income/Loss of JV and Associates 0.0% -0.2% 0.0% 0.0% 0.0% 0.0% Other Income 2.7% 2.
Slide 15: Financial Metrics Summary - EBITDA and Free Cash Flow
Financial Metrics Summary - EBITDA and Free Cash Flow Q3 2022 Q2 2022 Q1 2022 1H 2022 EBITDA Margin 14.7% 14.9% 16.5% 15.6% Adjustments: Gain on land conveyance and disposal 4.3% 2.0% 4.3% 3.0% Marked-to-market gain (loss) on FVTPL -0.4% -1.1% -1.1% -1.1% Foreign Exchange gain - net -0.9% 1.0% 0.5%
Slide 16: Balance Sheet
Balance Sheet amounts in Php billions, for the period ended Sep 30 2022 Dec 31, 2021 Cash and cash equivalents Short-term investments 31.5 24.8 Financial Assets at FVTPL 8.4 14.4 Bank Loans1 55.1 53.3 Net Debt2 15.2 14.1 Note: 1 Bank loans is calculated as the sum of short-term Working Capital debt,
Slide 17: 2022 Focus Areas - Top Priorities
2022 Focus Areas - Top 3 Priorities Grow both top and bottom line Continue to fortify our Balance Continue to build JFC with effective investment Sheet & Capital Structure to leadership, managerial and decisions and focus on ensure skilled teams at central/shared implementation excellence to functio
Slide 18: Forward Guidance - 2022 Outlook
Forward Guidance - 2022 Outlook Fourth quarter is trending strong and hence ending 2022 with: 1. Store network increase of 8%-10% versus 2021, including the impact of Milksha which the JFC Group started to consolidate into its financials effective February 22, 2022; 2. System wide sales and revenue
Slide 19: 2022 Q3 Results Discussion with the CFO
2022 Q3 Results Discussion with the CFO Jollibee Foods Corporation November 16, 2022