Q4 2024 Jollibee Foods Corp Earnings Call Transcript
Key Points
- Jollibee Foods Corp (JBFCF) reported a same-store sales growth of 5.7% and a system-wide sales growth of 15.9% for the fourth quarter, indicating strong market performance.
- The company is on track with its long-term objective to triple net income after tax attributable to the parent company by 2028, with a growth rate of 17.7% in 2024.
- Jollibee Foods Corp (JBFCF) is aggressively expanding its Jollibee brand internationally, particularly in the US, which is one of its best-performing markets.
- The Coffee and Tea segment, led by CBTL, showed significant growth, with a 14% year-on-year increase in 2024, and is expected to continue its upward trajectory.
- The company is pivoting towards a franchisor model, with 69% of its nearly 9,800 restaurants and cafes now franchised, aiming for an asset-light business model.
- Jollibee Foods Corp (JBFCF) faced challenges with Smash Burger, reporting negative EBITA in the third and fourth quarters, leading to management changes and restructuring.
- The company experienced a dip in operating profit margin due to increased labor costs, particularly from a wage hike in Metro Manila and California.
- There were concerns about the quality of profits, with a slight loss at the operating profit level and a dip in EBITA for the fourth quarter.
- The company's performance in China remains a challenge, with competition from dominant players like KFC and local brands, affecting its market strategy.
- The fourth quarter results were impacted by two one-off items, including a 0.6 billion peso loss from the extraction of Timall One from Titan, affecting overall financial performance.
Good afternoon, everyone. My name is Gio Dela Rosa. I'm Head of Research at Regis Partners. We are very glad, to have the opportunity to host Jollibee this afternoon for its full year 2024 results briefing. We have with us this afternoon, Cossette Palomar, as well as, Richard Shin, the CFO of JFC.
And without further ado, I'll hand it over to Cossette. Thank you.
Thank you, Gio. Good afternoon, everyone, and welcome to the Jollibee Group's fourth-quarter and full-year 2024 earnings conference call. Before I turn the call over to Mr. Shin for the presentation of our financial results, let me quickly read this reminder.
So this earnings call may include forward-looking statements that are based on certain assumptions of management and they're subject to risks and opportunities for unforeseen events. Actual results could differ materially from those contemplated in the relevant forward-looking statement, and the
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