Higher input costs weigh on JFC’s profitability

MANILA, Philippines — Elevated input costs took their toll on the profitability of Asian food conglomerate Jollibee Foods Corp. (JFC) during the first quarter, with net income attributable to equity holders of the parent company declining by 38.8 percent to P1.5 billion.

JFC said the elevated direct costs for the period were due to inflationary pressures on certain commodities and supply chain inputs amid recent geopolitical developments.

“First-quarter profitability was impacted by temporary cost pressures. Underlying demand across the business remained healthy,” JFC chief financial and risk officer and Jollibee Group international business chief executive officer Richard Shin said.

Shin, however, said JFC views current headwinds as manageable, supported by disciplined cost controls, ongoing productivity initiatives and targeted margin recovery actions across the group’s brands and markets.

“We are managing today’s cost volatility prudently, and we remain confident in our long-term growth outlook. As costs normalize over time, we remain focused on prudent capital allocation and sustaining profitable, long-term growth,” he said.

JFC’s revenues for the quarter rose by nine percent year-on-year to P76.5 billion as systemwide sales (SWS) accelerated by 10.3 percent on continued strength across multiple brands and geographies.

SWS for the Philippine business increased by eight percent, supported by strong contributions from Mang Inasal and Jollibee, while the international segment expanded by 13.5 percent.

Same-store sales for the quarter grew by 3.5 percent, with the Philippine business up by 3.2 percent and the international business up by four percent.

JFC said Philippine same-store sales growth reflected continued customer demand across key brands against a higher base in the prior year, which benefited from election-related spending.

It said demand trends also improved in March 2026, supported by graduation-related spending.

The Jollibee Group continued to expand its global store network, opening 181 gross new stores during the quarter, including 149 international openings.

As of end-March, its network consisted of 10,421 stores, 3,499 in the Philippines and 6,922 abroad.

JFC chief executive officer Ernesto Tanmantiong said that while the operating environment remains dynamic, the group is taking disciplined steps to manage near-term volatility through a measured price increase beginning in the second quarter.

He said this would come alongside thoughtful and targeted cost management initiatives, while continuing to advance sustainable growth and long-term shareholder value.

“Our first quarter results reflect the resilience of our diversified portfolio and the continued strength of consumer demand across our markets. We are encouraged by the healthy sales momentum across our businesses and the sustained expansion of our international footprint,” Tanmantiong said.

“As we continue to scale our global presence and strengthen our platform for long-term growth, we remain focused on what matters most: delivering great value to customers, building capabilities across our markets and investing in our people and brands,” he said.