Jollibee Foods (JFC) Q2 2024 earnings summary

Executive summary

• System-wide sales grew 12.1% in Q2 2024 and 11.3% for 1H 2024 year-over-year, driven by strong domestic and international expansion.

• Consolidated revenues rose 10.6% in Q2 and 10.9% for 1H 2024 compared to the same periods last year.

• Net income increased 27.3% in Q2 and 25.5% for 1H 2024 year-over-year, with EPS up 32.2% in Q2 and 30.4% for 1H.

• EBITDA for 1H 2024 reached ₱18.8 billion, up 18.2% year-over-year, with strong cash flow and improved margins.

• Store network expanded to 6,956 outlets globally, with 228 new stores opened and 157 closures in 1H 2024.

Financial highlights

• Q2 2024 revenues: ₱67.2 billion (+10.6% YoY); 1H 2024: ₱128.5 billion (+10.9% YoY).

• Q2 2024 net income: ₱3.19 billion (+27.3% YoY); 1H 2024: ₱5.89 billion (+25.5% YoY).

• Q2 2024 EPS: ₱2.62 (basic, +32.2% YoY); 1H 2024: ₱4.87 (basic, +30.4% YoY).

• Gross profit margin improved to 19.5% in Q2 2024 from 18.0% last year; operating margin rose to 7.5% from 6.6%.

• Cash and cash equivalents at June 2024: ₱37.8 billion (+13.8% from Dec 2023).

Outlook and guidance

• 2024 CAPEX budget reduced by at least 20% from ₱23 billion, focusing on store expansion, renovations, and supply chain.

• Management expects continued strong profit and cash flow, with flexibility to fund growth via operations and bank loans.

• Compose Coffee acquisition and Titan Fund II participation to drive further international growth.