Jollibee Food Corp (JFC), a leading Filipino foodservice company, has reported an impressive second quarter, with The Coffee Bean & Tea Leaf (CBTL) emerging as a key contributor. The group’s total sales reached ₱67.2 billion ($1.2 billion), and CBTL stood out with significant growth.
During the quarter ending on June 30, 2024, CBTL achieved a 21% increase in revenue, amounting to ₱5.2 billion ($93.7 million). Like-for-like sales surged by 25.6%. For the first half of 2024, CBTL’s revenue reached ₱9.9 billion ($175 million), marking a 14% increase compared to the same period last year.
CBTL’s financial performance was further bolstered by a 49% year-on-year increase in gross profit, reaching ₱1.1 billion ($20.1 million). The company also saw its EBITDA double to ₱896 million ($15.8 million) during this period.
JFC continued its expansion efforts by opening 39 net new CBTL stores in the second quarter, primarily in the Philippines and Kuwait, where it operates 191 and 84 stores, respectively. CBTL now has a global presence with 1,186 outlets across 25 markets, including East Asia, the Americas, the Middle East, and the Indian subcontinent.
Ernesto Tanmantiong, CEO of Jollibee Group, praised the company’s performance, noting that its coffee and tea business showed significant sequential and year-on-year improvement. He described the group’s second quarter results as “excellent.”
In addition to CBTL’s success, JFC’s bubble tea brand Milksha recorded a 7% increase in like-for-like sales during the quarter. Meanwhile, Vietnamese coffee chain Highlands Coffee experienced a 3% decline in like-for-like sales, an improvement over its 9% drop in the first quarter.
JFC has ambitious plans to expand its branded coffee chains, aiming to open 750 new stores across its quick-service brand portfolio in 2024. In March 2024, the company acquired a 10% stake in US-based automated coffee and tea concept Botrista Inc. for $28 million. JFC Chairman Tony Tan Caktiong emphasized that this investment would enhance customer experience and drive sustained profitable growth.
In August 2024, JFC finalized a deal to acquire a 70% stake in South Korean coffee chain Compose Coffee for $238 million. This acquisition, involving a 2,500-store business, is expected to contribute 2% to JFC’s 2024 revenues and 12% to its annual EBITDA. It will also expand JFC’s global store footprint by 34%.
Founded in 1978 and headquartered in Manila, JFC recorded a 15% year-on-year revenue growth in 2023, reaching ₱244 billion ($4.4 billion). In addition to its flagship Jollibee fast-food chain, the group operates several other brands, including Chowking, Mang Inasal, Greenwich Pizza, Smashburger, Hong Zhuang Yuan, Yonghe King, Red Ribbon, Tortazo, Tim Ho Wan, and Yoshinoya.