JOLLIBEE Foods Corp. on Tuesday reported a 38.8-percent decline in first-quarter net income attributable to equity holders of the parent company to P1.47 billion from P2.41 billion a year earlier, as elevated input costs weighed on profitability despite strong sales growth across its domestic and international businesses.
JFC Chief Executive Officer Ernesto Tanmantiong said the company continued to see resilient consumer demand despite a challenging operating environment.
“Our first quarter results reflect the resilience of our diversified portfolio and the continued strength of consumer demand across our markets,” he said.
“While the operating environment remains dynamic, we are taking disciplined steps to manage near-term volatility through measured price increase beginning in Q2 (second quarter),” Tanmantiong added.
For his part, JFC Chief Financial and Risk Officer Richard Shin said the company remained confident in its long-term growth prospects despite temporary cost pressures.
The food service giant said consolidated revenues rose 9 percent to P76.55 billion, while systemwide sales (SWS) grew 10.3 percent year on year.
Operating income, however, fell 18.2 percent to P3.95 billion, while earnings before interest, taxes, depreciation and amortization (Ebitda) slipped 4.9 percent to P9.31 billion.
Profitability was said to have been affected by higher direct costs, which increased 11.7 percent amid inflationary pressures on commodities and supply chain inputs linked to recent geopolitical developments.
The company said sales growth remained broad-based across markets, with Philippine SWS increasing 8 percent and international SWS rising 13.5 percent.
Its flagship Jollibee brand posted 10.7-percent global SWS growth and a 9.7-percent increase in operating income.
During the quarter, JFC completed the acquisition of South Korean restaurant operator Alldayfresh Co. Ltd., owner of the Shabu All Day hot pot chain, through its subsidiary Jolli-K Co. Ltd.
On Tuesday, JFC shares slipped P17.20 or 10.67 percent, to close at P144.00 each.
