Jollibee Foods Corp. · PSE:JFC
Jollibee Foods — Q1 2024 Earnings Presentation
28 slides from Jollibee Foods's earnings presentation, May 15, 2024
Slide 1: Jollibee Foods Corporation Q1 2024 Earnings Call
Jollibee Foods Corporation Q1 2024 Earnings Call CFO’s Update May 15, 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
CFO Key Message 1. Tracking to guidance with sustainable growth and margins i. Systemwide Sales: Php86.8Bn, +10.4% vs. LY ii. Rolling Base: +5.5% Global, +5.7% attributed to traffic growth iii.Revenues: Php61.3Bn, +11.3% vs. LY iv.Gross Profit: Php11.2bn, +12.1% vs. LY, 18.3% margin rate v. Operatin
Slide 4: CFO Key Message
CFO Key Message 1. On track to guidance with sustainable growth and margins i. Systemwide Sales: Php 86.8Bn, +10.4% vs. LY ii. Rolling Base: +5.5% Global, +5.7% attributed to traffic growth iii. Revenues: Php 61.3Bn, +11.3% vs. LY iv. Gross Profit: Php 11.2bn, +12.1% vs. LY, 18.3% margin rate v. Ope
Slide 5: World class organization recognition
World class organization recognition Jollibee Group recognized in TIME's World’s Best Companies 2023 and Gallup Exceptional Workplace Award; Jollibee Vietnam awarded as among Best Places to Work in Vietnam 2023 5
Slide 6: CFO Key Message
CFO Key Message 1. On track to guidance with sustainable growth and margins i. Systemwide Sales: Php 86.8Bn, +10.4% vs. LY ii. Rolling Base: +5.5% Global, +5.7% attributed to traffic growth iii. Revenues: Php 61.3Bn, +11.3% vs. LY iv. Gross Profit: Php 11.2bn, +12.1% vs. LY, +18.3% margin v. Operati
Slide 7: Philippine dominance continues (1/2)
Philippine dominance continues (1/2) Jollibee 2nd Most Valuable Brand in the Philippines, +2 ranks up 7
Slide 8: Philippine dominance continues (2/2)
Philippine dominance continues (2/2) Mang Inasal recognized as the strongest and fastest growing Filipino Brand, with its brand value surging by 201% to USD374Mn 8
Slide 9: Successful acquisitions: Highlands Coffee ranks 6th
Successful acquisitions: Highlands Coffee ranks 6th (from 28th) among the top strongest brands in Vietnam in 2023 9
Slide 10: JFC – Q1 2024 Performance Summary
JFC – Q1 2024 Performance Summary
Slide 11: Summary of Key Metrics
Summary of Key Metrics Note: Percentages are versus SPLY unless stated otherwise SWS Revenues SSSG Stores Q1 ‘24 Q1 ‘24 Q1 ‘24 6,885 Php86.8Bn Php61.3Bn +5.5% +5.3% +10.4% +11.3% TC +5.7% AC -0.2% Gross Profit Net Operating Income NIAT Q1 ‘24 Q1 ‘24 Q1 ‘24 Php11.2Bn Php4.1Bn Php2.6Bn +12.1% +13.7% +
Slide 12: Strongest Q1'24 SWS (Php 86.8Bn), +10.4% vs. LY
Strongest Q1’24 SWS (Php 86.8Bn), +10.4% vs. LY Systemwide Sales in PHP billions Global All-time highest when reported Highest vs similar quarters when reported Philippines 94 International 86 85 87 87 78 79 73 73 62 59 59 60 57 36 55 54 53 54 51 51 32 33 34 34 50 24 48 31 46 28 33 15 16 16 41 14 15
Slide 13: JFC versus Peers
JFC versus Peers SWS Store RB (%) Growth Growth JFC 5.5 10.4 5.3 Yum Brands -3.0 2.0 6.0 McDonald's 2.0 3.0 3.8 Restaurant Brands 4.6 8.1 3.9 Starbucks** -4.0 -2.0 6.0 Chipotle 7.0 14.1 7.9 Darden*** -1.0 6.8 7.0 Domino's 0.9 7.3 3.7 Wingstop 21.6 36.8 14.2 Note: *International peers in USD mn; Star
Slide 14: Topline Metrics for Q1 2024
Topline Metrics for Q1 2024 Growth fueled by sustainable organic growth in PH and International expansion Key Topline Metrics for the quarter ended March 31 Quarter-to Date New G% vs. LY SWS SSSG Forex Stores Philippines 10.0 6.9 3.1 - International 11.0 3.2 6.9 1.0 Global 10.4 5.5 4.6 0.4 14
Slide 15: SWS & RB (SSSG) Details by Business Units
SWS & RB (SSSG) Details by Business Units 2023 %Δ YTD Mar 2024 RB Sales New Stores Impact of SWS Growth Growth Contribution FOREX on SWS Philippines 10.0 6.9 3.1 China (3.0) (3.7) 3.6 (2.9) North America (NA) 10.3 4.3 3.9 2.1 NAAB 20.5 10.0 8.4 2.1 Smashburger (4.1) (4.1) (2.1) 2.1 Europe, Middle Ea
Slide 16: Channel SWS Q1 2024 vs. SPLY
Channel SWS Q1 2024 vs. SPLY Digital and Dine-in delivered robust growth Absolute SWS per Channel and Market with growth rates vs. LY Dine In Digital Other Off-Premise in Php Bn Q1 2024 %G v LY Q1 2024 %G v LY Q1 2024 %G v LY Philippines 22.9 11.0% 10.3 21.4% 19.2 3.7% China 2.4 -0.1% 2.9 -4.8% 0.5
Slide 17: Financial Details
Financial Details
Slide 18: Strong growth in all key metrics vs LY
Strong growth in all key metrics vs LY Key Financial Highlights 2024 vs 2023 for quarter ended March 31 Q1 %G as % of Mgn vs in Php Bn 2024 vs LY Rev LY (bps) System Wide Sales 86.8 10.4 Revenues 61.3 11.3 Gross Profit 11.2 12.1 18.3% +10 Operating Income 4.1 13.7 6.7% +20 18
Slide 19: Positive gearing from topline growth to profitability outcomes
Positive gearing from topline growth to profitability outcomes Key Bottomline Metrics 2024 vs 2023 for quarter ended March 31 Q1 %G as % of Mgn vs in Php Bn except for EPS 2024 vs LY Rev LY (bps) EBITDA 8.9 17.9 14.6% +80 Net Income 2.7 23.4 4.4% +40 NIAT 2.6 26.9 4.3% +60 EPS - Basic 2.244 28.3 EPS
Slide 20: Operating Margin Improvement
Operating Margin Improvement percentages to Revenues 2023 2024 18.2% 18.3% 6.5% 6.7% 3.7% 4.3% Gross Profit Margin Operating Profit Margin NIAT Margin GPM improvement driven by efficiencies in manufacturing costs and in logistics and warehousing 20
Slide 21: Margins as a % of Revenue
Margins as a % of Revenue Margins as % to Revenues Change Q1 Metrics 2024 2023 vs. LY Global Cost of Sales 81.7% 81.8% -0.1 Philippines 81.4% 81.6% -0.2 International 82.2% 82.3% -0.1 Global Gross Profit 18.3% 18.2% 0.1 Philippines 18.6% 18.4% 0.2 International 17.8% 17.7% 0.1 Global Operating Incom
Slide 22: Strong EBITDA Growth +17.9%
Strong EBITDA Growth +17.9% (In Php Millions) Quarter-to Date % 2024 2023 vs. LY Philippines 6,070 5,081 19.5% China 274 244 12.0% North America 780 484 61.0% Coffee and Tea 1,152 1,176 -2.0% Rest of the World 399 224 77.9% International 2,604 2,129 22.3% Others - Non-operational 275 379 -27.5% Tota
Slide 23: Fortified Balance Sheet and Credit Profile
Fortified Balance Sheet and Credit Profile Balance Sheet Financial Obligations Profile amounts in Php Bn (unless stated otherwise) 1Q2024 FY23 Financial Obligations Type Split Cash and Cash Equivalents Bank Loans 20.2% and Short-term Investments 32.6 33.9 Senior Bonds 39.6% Financial Assets at FVTPL
Slide 24: Investment in Botrista
Investment in Botrista • On March 27, 2024, JFC signed definitive agreements to invest USD 28Mn for 10% ownership Botrista, Inc. • With this Investment, JFC is considered as a Lead Investor and JFC will have one board seat and a board observer seat in consideration of other strategic partnerships JF
Slide 25: Investment in Titan Fund II
Investment in Titan Fund II • On April 4, 2024, JFC signed definitive agreements for SGD 90Mn Capital Commitment in Titan Dining Fund II LP • JFC will have 90% participating interest in said Fund. While Titan Fund II has not called capital nor made investments yet, it will focus on strategic investm
Slide 26: Investment Criteria
Investment Criteria 1. Strategic fit and accretive to tripling NIAT in 5 years. 2. Superior cash returns measured by incremental EBITDA margin & dollar contribution. 3. Accretive multiple to Group EBITDA multiple. 4. Resources in place to drive winning performance. 5. Growth potential in a targeted
Slide 27: On track to achieving FY2024 Guidance
On track to achieving FY2024 Guidance Q1’24: Global SWS Growth at 10.4% (PH +10%; IO +11%) RBG% at 5.5% Guidance: SWS Growth: 10% to 14%; RB Growth: 5% to 7% Q1’24: Store network grew by 5.3% YoY; 57% global franchised network Guidance: Store Network Growth: 7% to 8%; 700 to 750 new stores; Php 20Bn
Slide 28: Jollibee Foods Corporation Q1 2024 Earnings Call
Jollibee Foods Corporation Q1 2024 Earnings Call CFO’s Update May 15, 2024