Jollibee Foods Corp.’s net income declined by 7.6 percent in the first quarter of the year despite strong sales and operating income growth, the company reported on Tuesday.
The company in a statement said the decline in net income “was primarily due to non-operational factors.”
Its net income dropped to P2.5 billion in January to March from P2.7 billion a year earlier.
The fast food company’s bottom line was saddled by higher financing costs, taxes, and a decline in other income, its financial statement showed.
Direct costs, including cost of inventories and store and manufacturing costs, rose 4.2 percent to P57.17 billion from P50.1 billion a year earlier.
On the other hand, Jollibee’s other income fell 31.4 percent to P393.8 million from P573.7 million.
Revenues grew 14.6 percent to P70.23 billion from P61.3 billion a year earlier.
Systemwide sales increased 18.9 percent to P103.2 billion, compared with P86.83 billion, “driven by a combination of 5.5 percent same-store sales growth mainly from volume growth and new store contribution.”
Same-store sales of Jollibee’s Philippine operations rose 8.5 percent, with same-store sales of Mang Inasal up by 15.9 percent, Red Ribbon by 11.1 percent, Jollibee by 8.6 percent and Chowking by 6.2 percent.
Same-store sales from its international business increased by 0.7 percent, with Europe, Middle East, Asia and Australia (EMEAA) rising 5.3 percent, North America Asian brands 4.8 percent, Highlands Coffee 4.4 percent, Milksha 3.1 percent and Coffee Bean and Teal Leaf 2.8 percent.
Its China business declined by 8.3 percent, though it noted that Yonghe King showed sequential improvement in monthly volume.
Smashburger’s same-store sales contracted by 8 percent.
“The substantial increase in advertising and promotions drove a 14.6 percent rise in revenues,” said Richard Shin, Jollibee Group chief financial and risk officer.
“Looking ahead, the Jollibee Group expects continued strong operational performance, and we remain proactive in managing macroeconomic and financial headwinds,” he added.
