2023 ANNUAL REPORT FINAL As of March 11 2024 - For Filing
2023 ANNUAL REPORT FINAL As of March 11 2024 - For Filing
2023 ANNUAL REPORT FINAL As of March 11 2024 - For Filing
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
Cashier LCU
DTU
77487
S.E.C REG. No.
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-A
ANNUAL REPORT PURSUANT TO SECTION 17
OF THE SECURITIES REGULATION CODE AND SECTION 141
OF THE CORPORATION CODE OF THE PHILIPPINES
10. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of
the RSA
(a) Registrant has filed all reports to be filed under Section 17 of the SRC and SRC
Rule 17.1 thereunder, and Sections 26 and 141 of the Corporation Code of the
Philippines during the preceding twelve (12) months.
(b) Registrant has been subject to such filing requirements for the past ninety (90)
days.
13. Aggregate market value of the voting stock held by non-affiliates of the Registrant as
of December 31, 2023:
(b) Any proxy information statement filed pursuant to SRC Rule 20; or
Milestones and updates for subsidiaries and affiliates are discussed further in other parts of this
Report.
Jollibee
As of December 31, 2023, there were 1,239 Jollibee stores nationwide, of which 802 were
franchised and 437 were company-owned. In addition, outside the Philippines, Jollibee had 421
stores of which 102 were franchised and 319 were company-owned with specific locations as
follows: 70 in the United States, 27 in Canada, 1 in Guam, 2 in Italy, 12 in United Kingdom,
180 in Vietnam, 20 in Brunei, 20 in Hong Kong, 19 in Singapore, 4 in Macau, 10 in Malaysia, 1
in Spain and 55 in the Middle East.
Jollibee offers a quality menu of food, beverages and set meals that includes Chickenjoy,
Yumburger, Jolly Hotdog, Jolly Spaghetti, rice meals, Jolly Crispy fries, side dishes, pies,
sundaes, soft serve cones, coffee, juice and soft drinks. It also serves a full breakfast menu that
includes breakfast Yumburger, bacon & egg pancake sandwich, breakfast Burger Steak and
breakfast rice meals. In addition, Jollibee introduces special menus and sells other food products
during limited-time promotions to ensure that the brand remains exciting and relevant. Certain
Jollibee stores are open 24 hours daily. Jollibee also offers themed party packages that include
the venue, food, cake, appearance of mascots and party favors.
The Corporate Supply Chain provides manufacturing and logistics services to the various brands
of JFC in the Philippines through Zenith Foods Corporation and JWS Logistics.
1Pending approval of the Securities and Exchange Commission as of March 2024. As amended by the vote of at least a
majority of the Board of Directors during the Meeting of the Board of Directors on 5 June 2023 and by the affirmative vote
of stockholders owning or representing at least two-thirds (2/3) of the outstanding capital stock of the Corporation at the
Annual Meeting of Stockholders on 30 June 2023,
Page 6
JFC brands.
As of December 31, 2023, the Jollibee Group had 10 commissaries in the Philippines.
JWS Logistics (“JWSL”) is part of Jollibee Worldwide Pte. Ltd., the regional operating
headquarters of the Jollibee Group of companies. JWSL ensures the delivery of goods to the
JFC stores on-time and in-full through its services which include supply planning, warehousing,
distribution, and customer support and order management. It operates distribution centers in
strategic locations to service the growing network of stores in the JFC system and ensures the
timely delivery of goods. The biggest distribution center which serves as a major hub for Metro
Manila and South Luzon is located in a 5-hectare property in Barangay Marcelo Green,
Parañaque City with over 20,000 combined pallet locations for both dry and cold storages. Like
their manufacturing partner ZFC, JWSL is poised for expansion by increasing its storage
capacities in its distribution centers nationwide.
Category Supplier
Chicken C-JOY POULTRY MEATS PRODUCTION, INCORPORATED
2640 Brgy Santa Teresita, Sto. Tomas, Batangas, Philippines
GAMA FOODS CORPORATION
National Highway Tablon, Cagayan De Oro, Philippines
SAN MIGUEL FOODS, INC.
23Rd/F Jmt Condominium, Bldg ADB Avenue, Ortigas, Pasig, Philippines
Beef JBS AUSTRALIA PTY LIMITED
1 Lock Way Riverview Queensland 4303, Australia
JBS S/A
Av. Marginal Direita Do Tiete, 500 Vila Jaguara, 3 Andar - Bloco I, Sao
Paulo/Sp – Brasil
TEYS AUSTRALIA PTY LTD
2728 Logan Road Eight Mile Plains Qld 4113, Australia
Frozen Potatoes LAMB WESTON SALES INC
8701 West Gage Blvd, Kennewick, Washington, United States
MCCAIN INTERNATIONAL INC.
8734 3 Main Street, Florenceville-Bristol, New Brunswick, Canada
SIMPLOT MALAYSIA SDN BHD
Unit 1.03, Level 1, Plaza Damansara Block A, Bukit Damansara, Kuala
Lumpur, Malaysia
Carbonated COCA COLA BEVERAGES PHILIPPINES, INC
Beverages 28/F Six/Neo 26Th St Cor 5Th Ave., Bonifacio Global City, Taguig,
Philippines
PEPSI-COLA PRODUCTS PHILIPPINES INC
500 Shaw Boulevard, Mandaluyong, Philippines
Instant Mixes EDWARD KELLER (PHILS.) INC.
Carmelray Industrial Park 1, Canlubang, Calamba, Philippines
Oils OLEO-FATS, INCORPORATED
65 Industria Bagumbayan, Quezon City, Philippines
TRANS ASIA PHILS MANUFACTURING
5 Golden Rd. Caloocan Industrial Subd, Gen Luis St, Bo. Kaybiga,
Caloocan, Philippines
Packaging A1+MULTINATIONAL PACKAGING INC.
Unit 4C Rl Bldg San Roque, Tarlac, Philippines
Page 7
ZFC supplies the requirements of all the Company’s brands in the Philippines. Commissaries
owned and operated by ZFC are a total of three sites which serve multi- brands and product
platforms such as burgers, marinated chicken, sauces, pizza dough, pies, cakes, bread and
pastries, etc. Separately, the Company’s subsidiaries own commissaries producing specific
product lines such as one site that produces Chinese dishes for Chowking, five sites that bake
cakes and pastries for Red Ribbon, and one site that prepares grilled chicken and Filipino food
items for Mang Inasal.
Similarly for the international markets, Company’s subsidiaries own and operate their
commissaries. Yonghe King has commissary in Anhui for the manufactured of Chinese food
items and Hong Zhuang Yuan has its own Central Kitchen in Beijing, China. There are two Red
Ribbon baking facilities in the United States of America, and a Jollibee Commissary in Vietnam.
Food quality, service, price-value relationship, store location and ambience, and efficient
operations continue to be critical elements of the Company’s success in the quick-service
restaurant industry.
The Group operates its Philippine and International businesses through its various business and
functional units. These business and functional units operate under the leadership of the
following individuals:
Philippine Business and Jollibee Global – This business unit is headed by Mr. Joseph C.
Tanbuntiong. Mr. Tanbuntiong was also to concurrent head of Red Ribbon Philippines from
May 2021 to February 2022. He also led the Jollibee Philippine Business in previous years.
Jollibee Philippines – This business unit has been headed by Mr. Fernando S. Yu, Jr. since 2020.
Prior to his current appointment, Mr. Yu headed the Business Support Services function of the
Jollibee Group.
Chowking Philippines – Mr. Kenneth Andrew A. Lingan is the head of this unit since 2022. The
Chowking team also oversees and manages Milksha in the Philippines.
Mang Inasal Philippines – The unit is headed by Mr. Joseph Michael V. Castro since 2022. He
was previously the General Manager of the Greenwich Business Unit and has been with the
company since 2004.
Greenwich, Red Ribbon, Foreign Franchised Brands– The group is led by Mr. Justo S. Alano III
since 2020. Foreign Franchised Brands currently include Burger King, Panda Express,
Yoshinoya and Common Man Coffee Roasters.
Greenwich Philippines – Mr. Ma. Alfonso Romeo Roderos is the head of this unit since 2022.
Red Ribbon Philippines – Mr. Jose Amado M. Dominguez is the head of this unit since 2022
and was previously the General Manager for Burger King Philippines.
Burger King Philippines – The business unit is led by Mr. John G. Velasco since 2022. He was
the previous RBU Head for Metro South of Jollibee Philippines when he joined back in 2018.
Superfoods Group – The group which is based in Vietnam, covers Highlands Coffee, and is
headed by Mr. Thai Phi Diep.
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China and Global Digital - Mr. Carl Brian Tancaktiong currently leads thes e b us i n es s units
since 2023.
JFC China (JFCC) – Mr. Louie Liu currently leads the unit since 2022 and concurrently heads
Yong He King (YHK).
Hong Zhuang Yuan (HZY) – The business unit is headed by Mr. Xiaofei Yin since 2023. He
previously was the CEO of CITICPE Holding Enterprise and held the General Manager role in
Yong He King (YHK) and Hong Zhuang Yuan (HZY) for several years.
Jollibee Group North America–This unit covers the following brands that have operations in
the United States and Canada: Jollibee, Red Ribbon and Chowking, Milksha and Tim Ho Wan.
The business unit is headed by Ms. Maribeth dela Cruz since 2023.
Smashburger – The business unit was headed by Mr. Carl Bachmann until June 2023. Mr. Jose
Ma. A. Miñana, Jr. is the appointed Interim Head since July 2023.
Ms. Dela Cruz and Mr. Miñana, Jr. report to Mr. Ernesto Tanmantiong.
The Coffee Bean & Tea Leaf (CBTL) – The CBTL group is headed by Mr. John In De Braekt
as Chief Executive Officer since 2022.
Milksha – Mr. Peter Huang (Shih Wi) currently heads Milkshop International Co. Ltd.. Mr.
Huang was also the company’s founder. Milksha products are currently being offered in
Chowking stores in the Philippines.
Europe, Middle East, Asia and Australia (EMEAA) – Mr. Dennis M. Flores currently heads
the business unit. He was previously Vice President and International Business Head for Jollibee
Asia and Middle East, and Chowking Middle East.
Corporate Units
Business Support– This unit is headed by Mr. William Tan Untiong and includes Procurement,
Real Estate, Quality Management, Global Business Services, and Process Engineering.
Human Resources– This unit is headed by Mr. Arsenio M. Sabado since 2018.
Marketing – The unit is headed by Mr. David Cruse Beal. He joined the company in 2023. He
was previously with Starbucks Global for over 11 years where he was the VP for International
Digital and Marketing and VP for Digital and Loyalty Development.
Finance and Risk– This unit is headed by Mr. Richard Chong Woo Shin who joined in 2022.
Legal, Ethics, and Compliance– This unit is headed by Atty. Valerie F. Amante. She joined the
company in 2007.
Sustainability and Public Affairs – The unit is headed by Mr. Jose Ma. A. Miñana, Jr. since 2019.
Product Development – The unit is headed by Mr. Thomas Ryan since 2018. Mr. Ryan was
previously the head of Smashburger.
Technology – This unit is headed by Mr. Marcos Cadena since 2021. He reports to Mr. Carl Brian
Tancaktiong in his concurrent role as Global Digital Adviser
Internal Audit – The unit is headed by Mr. Yixing (Frank) Sheng since 2018.
On September 28, 2022, the Company disclosed that that its wholly owned subsidiary Jollibee
Worldwide Pte. Ltd. (JWPL) announced its additional capital call commitment to Titan Dining
LP (“Titan”), the private equity fund which owns the Tim Ho Wan brand and company-owned
Tim Ho Wan stores.
The fund size of Titan increased from its current S$250,000,000 to S$350,000,000, to fund the
store expansion plans and working capital requirements of Tim Ho Wan as well as facilitate the
completion of other projects. JWPL has a 90% participating interest in Titan. With the increase
in fund size, JWPL’s total commitment to the fund shall amount to S$315,000,000. 2
On April 5, 2023, the Company disclosed that it will purchase a majority stake in Meko Holdings
Limited (Meko), Jollibee brand’s master franchisee in Hong Kong. Golden Plate Pte. Ltd., a
Singapore-based wholly owned subsidiary of Jollibee Worldwide Pte. Ltd. which is 100%
owned by JFC will acquire shares from the shareholders of Meko for a total of 60% ownership
equivalent to US$16.08 million, subject to adjustments. The remaining 40% will continue to be
owned by the current shareholders of Meko.
The transaction has been completed on September 1, 2023 with its disclosure to the public
approved by the PSE on September 4, 2023.
On July 6, 2023, the Jollibee Group made an additional investment proportionate to its
ownership interest in Tortazo amounting to USD3.5 million (Php 195.2 million).
The Jollibee Group, through Jollibee Foods Corporation (USA), has 52.22% ownership in
Tortazo, a company that owns and operates the Tortazo business – a Mexican fast casual
restaurant business in the USA, founded by award-winning Chef Rick Bayless.
On August 4, 2023, the Company (60% shareholding) and Food Collective, Pte. Ltd.
(FCPL) (40% shareholding) announced the establishment of a joint venture company
(JVCo) that will own and operate Tiong Bahru Bakery and Common Man Coffee
Roasters in the Philippines.
The Company disclosed on May 10, 2023 that the SuperFoods Group which owns Highlands
Coffee and PHO24 signed agreements to transfer the assets of the PHO24 business to East-West
Restaurant Concepts (Acquiring Company). The franchise agreement for the operation of
PHO24 stores in the Philippines was also terminated.
2
On January 1, 2024, the Company announced its additional capital commitment to Titan, with the fund size of Titan increasing
from S$350,000,000 to S$450,000,000, and its participating interest increasing from 90% to 92%.
Page 10
EMPLOYEES
The Company, its local subsidiaries and support units have approximately 12,300 employees in
the Philippines as at December 31, 2023. The regular daily-paid employees of Company- owned
Jollibee stores are subject to a collective bargaining agreement which was renewed and signed
on April 11, 2022.
Aside from all benefits mandated by law, the Company provides training opportunities (internal
and external) to its employees. Qualified employees are also entitled to avail of options under
the Company’s Stock Options Plan.
COMPETITION
The food service and restaurant industry in the Philippines and other countries where the
Company has operations is highly competitive. The Jollibee Group’s stores compete within the
quick service restaurants (QSRs) and fast casual segments and other food service and restaurant
companies. The Jollibee Group competes on the basis of food quality and variety, price, value
perception, customer service reputation, location as well as cleanliness and maintenance of stores.
New product development, digital engagement as well as advertising levels and promotional
initiatives are also key factors.
The Jollibee Group’s primary competition includes McDonald’s, KFC, Burger King (outside the
Philippines), other chicken, burger, pizza and pasta chains, Chinese fast food restaurants, grilled
chicken and Filipino restaurants as well as bakeshops. Competition from independent restaurants,
grocers, food packs and convenience stores offering take-away options has also increased.
The Jollibee Group also competes not only for customers but also for personnel, suitable land or
buildings and franchisees who have the commitment, capability and capitalization.
The Jollibee Group believes that its competitive position is differentiated by, among others, the
taste of its food products and value for money product offerings.
The Jollibee Group plans to continue to increase market share through, among others, store network
expansion supported by new product launches, tie-ups and increasing visit frequency and
targeting certain consumer groups that are not yet part of the customer base through, among
others, promotions and target advertising.
CUSTOMERS
The Company serves a wide spectrum of customers from all economic classes. It is not
dependent on a single customer or a few customers. Neither is there a single customer that
accounts for, or will account for, 20% or more of the Company’s sales.
INFORMATION TECHNOLOGY
The Jollibee Group views IT as an integral part of its operations. It believes that its current IT
systems streamline its operations and enhance its overall organizational efficiency. IT services
are provided mainly by third-party service providers under contracts entered into by the Group.
The IT products and services provided by these third-party service providers include
professional services for management of IT resources.
The Jollibee Group utilizes enterprise resource planning software such as Microsoft
Dynamics, NetSuite, SAGE and SAP as well as cloud-hosting services. The information security
and cybersecurity governance and risk management programs were patterned after the
National Institute of Standards cybersecurity framework. The Jollibee Group treats its
cybersecurity risk to be at the same level as compliance, operational, financial, and reputational
risks with suitable measurement criteria to ensure that results are monitored and managed.
Page 11
RELATED PARTIES
The Company runs its business independently of its subsidiaries and other related parties.
There is no dependence on the Company’s related parties.
For this reason, the Company allocates a Research and Development budget as indicated below
for the Jollibee Philippines brand:
ENVIRONMENTAL LAWS
In keeping with its Corporate Social Responsibility (CSR), the Company recognizes its
responsibility on environmental conservation and protection. While manufacturing standards
are currently being used to monitor the Restaurant Sector, the Company exerts efforts to meet
the standards being applied to it by government regulators. Several measures were included in
its operations, covering both procedural and technological aspects, which pay heed to the
environmental laws and regulations being applied to the quick-service restaurant sector.
As part of the proactive measures being undertaken at the store level, the Company continues to
implement information, education and communication (IEC) campaigns that equip store
personnel with the knowledge and skills on environmental management, best management
practices in the kitchen, and proper operation and maintenance of pollution control equipment.
For 2023, the Company increased the frequency of JFC-exclusive training for Pollution Control
Officers (PCO) from 14 sessions last 2022 to 15 sessions which was attended by 1,108
participants. Apart from this, three sessions of Managing Head training were facilitated to
provide an orientation on environmental laws and regulations for Area Managers, and Group
Managers and Managing Directors of franchisees.
The Company continuously optimizes the water management practices in the stores. The pilot
project of the improved rainwater harvesting system was successfully implemented in 2022 with
initially roll-out to select stores having mandatory requirement by local authorities in 2023. For
wastewater management, the existing design of the treatment systems is being upgraded with
the introduction of Automated Grease Removal Unit (Auto- GRU) for new stores of select
brands. Pilot installations of new wastewater treatment technologies were explored to meet the
Page 12
prescribed effluent quality of the regulators. These initiatives increase the options of the
Company to implement cost-effective solutions to sustain regulatory compliance. In addition to
this, the stores religiously perform the Cleaner Production and Pollution Prevention initiatives
to reduce the environmental impact of the store operation.
The Company continues its energy saving initiatives with the use of grid-tied solar power system
in selected stores to reduce power consumption from the grid. Use of solar power, even with
limited capacity, provided environmental benefits. These solar photovoltaic roof panels have a
cumulative capacity of 20-40 kW and reduce consumption from the grid by 3-7% in each store.
In 2023, solar photovoltaic roof panels were installed in twenty-six (26) more stores such as 15
stores for Jollibee, 6 stores for Chowking, 3 stores for Mang Inasal, and 1 store for Red Ribbon.
On these installations, over 410,000 kW of electricity use from the grid was reduced. For 2023,
installed solar-powered perimeter and parking area lighting on 73 stores, 53 of this are newly
opened and renovated stores, to replace the conventional LED and metal-halide lamps resulted
to an annual decrease in electricity from the grid by 86,700 kW. On average, this initiative
reduces energy utilization by around 4,000 kWh annually per store. Most new stores will be
equipped with solar-powered perimeter and parking area lighting moving forward.
The Company is actively studying various renewable energy sources for its commissaries as
part of its supply chain decarbonization strategy. During the year, the Company took significant
steps to enhance its sustainable business practices within its commissaries and logistics centers
in the Philippines, aiming to minimize the environmental impact of its operations. The Company
introduced solar panels at two of its state-of-the-art commissaries in Laguna, Philippines in
2023, becoming the first solar-powered manufacturing facilities for Zenith Foods Corporation
(ZFC). Additionally, the installation at other sites, including the Jollibee Worldwide Services
Logistics Center, is expected to be completed by the second quarter of 2024. This initiative will
enable approximately 18% of the energy consumption at these three facilities to be sourced from
renewable energy. The implementation of solar panel systems is a transformative step towards
harnessing clean energy, emphasizing the Company’s responsible practices and the commitment
to a sustainable future.
In 2023, the Jollibee Group derived 253,061 kWh from renewable sources in the Company’s
manufacturing operations. As the Company continues to explore and implement sustainable
energy solutions, the Company is confident that it can further reduce our environmental impact
and contribute to a greener future.
Prior to the effectivity of the Extended Producer Responsibility Act of 2022, JFC and its
subsidiaries launched initiatives to minimize the environmental impact of store operation
through reduction of plastic wastes and improvement of the overall management of solid waste
generated from the stores. As part of the store’s solid and plastic waste management, the
following are some of the programs being implemented: (1) Project Wash - launched in 2004
across all Jollibee stores to shift the use of reusable wares and utensils for dine-in transactions
resulted in a significant decrease in plastic waste generated; (2) Skip the Straw Movement -
launched in 2019 across the stores for all JFC brands to encourage customers to lessen the usage
of plastic straws by making it available per request; and (3) Use of Paper Packaging - shifted to
paper-based containers on take-out transaction of food and beverages of select brands such as
Jollibee, Mang Inasal, Chowking and Burger King. The Company continuously complies with
local ordinances on banning Single Use Plastic by replacing the disposable plastic cutlery and
straws with alternatives made of wood and paper materials. In 2022, the Company established
Page 13
the plastic footprint for the year and explored viable solutions and strategies to meet the recovery
targets mandated by the EPR law. JFC has complied with the committed diversion target
indicated in the company’s Extended Producers Responsibility Program.
Hand in hand with its mission of bringing the joy of eating to everyone, the Company also
believes in inculcating the spirit of environmental responsibility both inside and outside the
Company. More than a one-time effort, this unceasing pledge to the environment can be best
seen in its proactive efforts to anticipate and address issues through continuous feedback and
communication with the Company’s partners in the government and the customer base.
RISKS
The major business risks facing the Jollibee Group are as follows:
Competition Risks
The food service and restaurant industry in the Philippines and other countries where the Group
has operations is highly competitive. The Group competes with other well-established
international restaurant chains and franchises, as well as other regional and local restaurants on
the basis of product choice, quality, affordability, service, location, as well as the nature and
condition of the stores in the Group’s network.
This industry has few barriers to entry for opening one or numerous points of sale and therefore
new competitors may emerge at any time. The Group may lose market share to well-established
companies such as McDonald’s, YUM! Brands, Inc. (which owns the KFC, Pizza Hut and Taco
Bell brands) and Restaurant Brands International Inc. (which owns the Tim Hortons®, Burger
King® and Popeyes® brands). Particularly in the Philippines, other international and national
restaurant chains such as McDonald’s, KFC, Shakey’s, Pizza Hut, Wendy’s and Max’s Group
may also take market share as they expand in the Philippines, and new emerging restaurant
chains may scale up or enter the market. The Group also competes with restaurants that focus
on fried chicken, sandwiches, burgers, pizza, grilled chicken, baked goods (including pastries),
coffee and tea, or offer alternative menus. Lastly, the Group also competes with certain
segments of the food industry, such as convenience stores and prepared food counters in grocery
stores.
The Group believes this risk can be managed through the Group’s strengths and strategies to
ensure competitiveness in the market.
The Jollibee Group’s success also relies on the willingness and ability of its
independent franchisees to implement major initiatives, which may include financial
investment, and to remain aligned with the Jollibee Group on operating, promotional
and capital-intensive reinvestment plans. The ability of franchisees to contribute to the
achievement of the Jollibee Group’s plans is dependent in large part on the availability
to them of funding at reasonable interest rates and may be negatively impacted by the
financial markets in general, by the creditworthiness of the Jollibee Group’s franchisees
or the Jollibee Group or by banks’ lending practices. If the Jollibee Group’s franchisees
are unwilling or unable to invest in major initiatives or are unable to obtain financing at
commercially reasonable rates, or at all, the Group’s future growth and results of operations
could be adversely affected.
To mitigate this risk, the Jollibee Group implements a strong selection process in deciding and
approving franchisees. The Jollibee Group imposes various criteria on site selection to ensure
that Jollibee Group brand stores are opened in viable locations. The terms and conditions of each
franchise agreement are carefully reviewed to ensure that the franchisee will comply with
standards imposed by the Jollibee Group. The Jollibee Group likewise conducts regular audits
and checks and performs regular performance evaluations to ensure compliance by the
franchisee. During the pandemic, Jollibee as franchisor provided assistance to its franchisees on
Page 14
various aspects of the franchise, to ensure that the franchisees remain financially afloat despite
the challenging business conditions.
The Jollibee Group believes it must preserve, enhance and leverage the value of its brands.
Brand value is based in part on consumer perceptions. Those perceptions are affected by a
variety of subjective factors, including the nutritional content and preparation of the Jollibee
Group’s food, the ingredients the Jollibee Group uses, the manner in which it sources
commodities and its general business practices. Consumer acceptance of the Group’s offerings
is subject to change for a variety of reasons, and some changes can occur rapidly.
The Group is exposed to the risk that fraud and other misconduct committed by employees or
outsiders could occur. Any occurrence of such fraudulent events may damage the reputation of
the Group and may adversely affect its business, financial condition, results of operations and
prospects. In addition, failure on the part of the Group to prevent such fraudulent actions may
result in penalties under relevant laws and regulations. Although the Group has in place certain
internal procedures to prevent and detect fraudulent activities, these may be insufficient to
prevent such occurrences from transpiring. There can be no assurance that the Group will be
able to avoid incidents of fraud in the course of its business.
To mitigate this risk, the Jollibee Group had various marketing initiatives aimed at building
and preserving the brands’ value from the consumers’ perspective with an ability to adapt to
changes in consumer needs. JFC constantly improves its capabilities and works closely with
advertising and consumer research agencies to ensure that the Jollibee Group’s advertising
campaigns include strategic product innovations relevant in building brand equity and drive
conversion. The Jollibee Group also engages global and best-in-class media agencies to ensure
that campaign initiatives achieve the desired consumer touch points, balancing effectiveness
and efficiency.
In addition, the Group has adopted a Global Internal Controls system to ensure integrity of
financial and accounting information. In addition, the Group has adopted codes of business
ethics and discipline which are promoted through monitoring and training programs across the
entire organization. The Group also undertakes due diligence on its suppliers and service
providers who are required to abide by applicable laws and regulations (including anti-bribery
and anti-corruption laws) and to immediately report any employee who violate Group policy
on gift giving and solicitation.
Advertising Risks
The Group believes that its various brands are critical to its business. The Group incurs costs
and expends other resources in its marketing efforts to raise brand awareness and attract and
retain customers using a variety of media. In addition, the support of franchise owners is critical
for the success of advertising and marketing campaigns, and the successful execution of these
campaigns will depend on the Group’s ability to maintain alignment with its franchise owners.
To mitigate this risk and to maintain market leadership and achieve sustainable growth, the
Group invests in market and consumer research and has an operations teams, which together
provide in-depth understanding of the food service and restaurant industry, and extensive
consumer insights. The Group intends to focus on driving up the brand’s ability to deliver the
best value to customers, by consistently being the best in taste, giving a delightful experience,
making the JFC brands and products accessible and good value for money, and innovating to
meet the evolving consumers’ needs.
Labor Risks
Store operations are highly service-oriented, and the Group’s success depends in part upon the
Group’s and the Group’s franchisees’ ability to attract, retain and motivate a sufficient number
of qualified employees, including franchisee management, store managers and other crew
Page 15
members. The market for qualified employees in the retail food industry is very competitive.
Any future inability to recruit and retain qualified individuals may delay the planned openings
of new stores by the Group and could materially and adversely impact the operation of its
existing stores. Any such delays, material increases in employee turnover rate in franchisee
management or existing stores or widespread employee dissatisfaction could have a material
adverse effect on the Group’s business and results of operations.
The Group relies on third-party food suppliers, distributors, logistics and warehousing partners
to supply ingredients used in the preparation of the meals it sells, including sauces, meat and
fresh produce. Although such third parties are subject to regulations, including food safety and
environmental regulations, such regulations may not prevent such third parties from
experiencing problems related to food safety and hygiene. As a result, the Group’s reliance on
third-party food suppliers, distributors, logistics and warehousing partners increases the risk
that food-borne illness incidents could be caused by factors outside of the Group’s control and
that multiple locations would be affected rather than a single store. Additionally, failure by any
of the Group’s third-party food suppliers, distributors, logistics and warehousing partners to
comply with regulations, allegations of compliance failure, claims of intentional or negligent
contamination of ingredients and raw materials or prolonged and intense negative publicity may
disrupt their operations and result in a disruption of the Group’s food supply.
To mitigate this risk, the Group’s quality assurance and internal audit teams as well as
third-party certifying bodies, conduct meticulous and regular audits at both Group- owned
and franchised stores, covering process and quality systems, good manufacturing practices and
standard sanitation operating procedures, hazard analysis critical control points as well as food
safety and quality management system requirements. The Group likewise strengthens food,
service and cleanliness (“FSC”) through regular training and certification concerns and by
considering customer feedback. The Group implements stringent accreditation procedures for
third-party suppliers to ensure compliance with the Group’s FSC standards.
Overall, the Company is committed to strengthen its posture in relation to risks by adapting a
more defined Enterprise Risk Management Policy in accordance with ISO 31000 and COSO
Standards. The policy will include a systematic process of identifying, assessing, evaluating,
treating, and monitoring risk. These enhance ERM program targets to enable the Jollibee Group
to: (i) attain the strategic objectives and protect its value and reputation; (ii) provide the
maximum level of assurance to shareholders; (iii) defend the interests of customers,
shareholders, other parties who are interested in the Company’s progress; ( i v ) Ensure
Corporate Governance Compliance and (v) Uphold corporate stability and financial strength.
The trust of integrating ERM in the daily operations equips the organization to optimize
opportunities attributable to a risk and/or reduce if not eliminate its negative impact to its key
objectives.
To ensure the effective availability of essential and critical services, the Company also
maintains its Business Continuity Management Policy with the aim of ensuring organizational
resiliency is achievable and immediate risk management is executable.
A comprehensive insurance cover is being managed and maintained by the Company as a way
of transferring insurable risks to protect its assets and liability exposures pertaining to business
operations. It employs assessment for purposes of determining the appropriate program design
and amount of coverage for the Company as may be usually carried by other companies engaged
in the same or similar activities and in compliance with regulatory requirement where the
Company operates.
The Company, consistent with its trust to continuously manage the risks of the organization,
conducts regular Loss Control Engineering Services to its major commissaries and selected
stores to review and improve safety protocol and preventive measures related to assets and
people safety.
Page 16
The Jollibee Group did not issue securities as of December 31, 2023.
Chowking
Chowking combines traditional Chinese cuisine with modern fast-food service. It offers freshly
made and affordably priced Chinese food and beverages including chao fan (Chinese fried rice),
dim sum, noodles and milk tea. Chowking also offers breakfast rice meals, combination meals
and Chinese lauriat-style individual and family meals. Certain Chowking stores are open 24
hours daily.
As of December 31, 2023, there were 561 Chowking stores in the Philippines, of which 174
were owned and operated by the Company and 387 were franchised. As of the same date, there
were 52 Chowking stores in operation in six countries and territories outside the Philippines, 15
in the United States and 37 franchised in the Middle East (20 in UAE, 6 in Qatar, 5 in Kuwait,
4 in Saudi Arabia, and 2 in Oman).
Greenwich
Greenwich was the first brand acquired by the Company in 1994 and became a wholly-owned
subsidiary of the Company in 2006.
Greenwich offers a menu with a variety of pizzas and pastas that caters to the local taste. It also
offers individual and group combination meals, side dishes and desserts. Over the years, the
Group transformed the brand in terms of food offerings, look and heightened social media
presence from Greenwich Pizza & Pasta to Greenwich Pizzeria, reflecting dynamism and
promoting a stronger culture of barkadahan (a group of friends). The Jollibee Group believes
that Greenwich is the first pizza chain in the Philippines to use heated thermal bags to ensure
that food stays hot even after transit.
As of December 31, 2023, there were 272 Greenwich stores in the Philippines, of which 118
were owned and operated by the Company and 154 were franchised.
Red Ribbon
Red Ribbon offers an extensive variety of high-quality cakes, pastries and bread and provides
cake customization services for special occasions. The Jollibee Group believes that Red Ribbon
is a leading bakeshop for round cakes and that it has an increasing market share in dedication
and roll cakes. Red Ribbon’s best-selling products include its chocolate cakes, namely, Black
Forest cake, Chocolate Dedication cake, Chocolate Mousse and Triple Chocolate roll. Red
Ribbon also offers traditional Filipino bakeshop products such as empanada (baked turnover
with filling), ensaymada (soft, sweet dough pastry) as well as mamon and taisan (chiffon or
sponge cakes). In the United States, Red Ribbon serves hot meals and cold desserts in-store.
As of December 31, 2023, there were 518 Red Ribbon stores in the Philippines, of which 177
were owned and operated by the Company and 341 were franchised. As of the same date, there
Page 17
were 41 Red Ribbon stores in operation in the United States, all of which were owned and
operated by the Group, including in the states of California, Nevada, Washington, Hawaii, New
York, New Jersey, Virginia, Texas and Illinois.
Mang Inasal
In 2010, the Company acquired 70 per cent. equity interest in Mang Inasal. In 2016, Mang Inasal
became a wholly-owned subsidiary of the Company.
Mang Inasal offers grilled food products such as chicken inasal (chicken marinated in local
spices before being skewered and grilled) and traditional Filipino dishes and desserts such as
pork sisig (chopped pork seasoned with chilli pepper, local citrus fruit and onion) and halo-halo
(a layered dessert made of sweetened beans and fruits, shaved ice and milk), respectively. In
addition, Mang Inasal offers value meals, combination meals and party pans. The Company
believes that Mang Inasal is the top grilled chicken restaurant in the Philippines.
As of December 31, 2023, there were 573 Mang Inasal stores in the Philippines, of which 15
were owned and operated by the Company and 558 were franchised.
Burger King
In 2011, the Company acquired a 54 per cent. equity interest in BKTitans Inc., the parent
company of the entities that own the franchises for Burger King stores.
Burger King is a hamburger QSR chain that offers the Whopper or flame-grilled hamburgers,
specialty hamburgers, chicken and other specialty sandwiches, rice meals, side dishes,
beverages and desserts. The launch of its delivery website in 2018 is a key aspect of Burger
King’s sales growth.
As of December 31, 2023, there were 132 Burger King stores in the Philippines, all of which
were owned and operated by the Company.
Yonghe King
In 2004, the Company acquired an 85 per cent. equity interest in Yonghe King. In 2007, Yonghe
King became a wholly-owned subsidiary of the Company.
Yonghe King is the largest QSR brand of the Group in the PRC in terms of sales and store
network. Its top three flagship products are premium tomato beef noodle soup, crispy tender
chicken thigh with minced pork rice and soya milk. The Jollibee Group believes that Yonghe
King’s competitive position is differentiated by, among others, its soya milk being made fresh
in-store daily. The expansion of delivery channels including partnerships with food delivery
aggregators and the implementation of mobile payment through Alipay and WeChat are key
aspects of Yonghe King’s sales growth.
As of December 31, 2023, there were 465 Yonghe King stores in the PRC, of which 286 were
owned and operated by the Company and 179 were franchised.
Hong Zhuang Yuan specializes in congee. Its bestselling products include eight treasures
congee, century egg congee, spring onion pancake and beef pies. In addition, it regularly offers,
for a limited time, certain seasonal food products to provide additional variety to its menu. In
2018, Hong Zhuang Yuan launched a self-service digital ordering system in all of its stores that
enabled customers to place their orders by simply scanning the QR code on the table. Certain
Hong Zhuang Yuan stores also have open kitchens to attract diners and enable them to
experience the food “show”.
Page 18
As of December 31, 2023, there were 59 Hong Zhuang Yuan stores, of which 4 5were owned
and operated by the Company and 14 were franchised.
Highlands Coffee
Highlands Coffee serves coffee prepared in the traditional Vietnamese way using the phin filter,
espresso-based beverages, ice blended coffee- and non-coffee based beverages, modern tea
beverages that include fresh fruits and toppings, banh mi and Vietnamese flavour-inspired
pastries in trendy coffee shops. It also sells packaged coffee and other merchandise through its
cafés and wholesale to an exclusive distributor.
As of December 31, 2023, there were 779 Highlands Coffee cafés in Vietnam, of which 646
were owned and operated by the Company and 133 were franchised. As of the same date, there
were 56 Highlands Coffee cafés in the Philippines, all of which were franchised. The Philippines
is the first international market of Highlands Coffee.
Smashburger
In 2015, the Company acquired a 40% equity interest in SJBF LLC, the parent company of the
entities comprising the Smashburger business. In 2018, Smashburger became a wholly-owned
subsidiary of the Company after acquiring an additional 45% and subsequently, remaining 15%
equity interest in SJBF LLC.
Smashburger is a hamburger fast casual chain that offers a variety of burgers, salads, side dishes
and beverages. The Group believes that its competitive position is differentiated by, among
others, its use of never frozen 100% Certified Angus Beef. In addition, Smashburger offers new
products, limited time offers and holiday specials to enable its customers to experience new
burgers. In 2019, Smashburger partnered with key delivery aggregators to expand its sales
channels and provide greater availability of its products to customers.
As of December 31, 2023, there were 236 Smashburger stores in operation in eight countries
and territories: including the United States, Canada, United Kingdom, Costa Rica, Saudi Arabia,
Egypt, Panama, and the Scotland. As of the same date, there were 210 Smashburger stores in
the United States, of which 133 were owned and operated by the Company and 77 were
franchised.
In 2019, the Company acquired The Coffee Bean & Tea Leaf ® (CBTL) through its 80% stake
in Super Magnificent Coffee Company Pte. Ltd.
CBTL is an American coffee chain founded in 1963 in Los Angeles, California and is widely
credited for driving high quality and innovation to the coffee and tea industry.
CBTL uses only individually hand-roasted coffee beans and hand-blended teas from farms in
various countries like Costa Rica, Colombia, Kenya, Indonesia, Jamaica, Thailand and Sri
Lanka. It started the frozen coffee drink craze with the invention of The Original Ice Blended®
drink and is also the first global coffee and tea retailer to offer cold brew tea which has become
increasingly popular due to its smoother, less acidic taste. CBTL offers a variety of hot and cold
coffee and hot and iced tea drinks. It also sells a variety of whole bean coffees, whole leaf teas,
flavored powders, and baked food.
Tim Ho Wan
In May 2018, August 2018, May 2019, October 2019 and March 2020, the Company, through
JWPL, made investments in the amounts of SG$18 million, SG$0.9 million, SG$2.7 million,
SG$53.4 million and SG$2.4 million, respectively, in Titan Dining LP, a private equity fund
that had executed (through a wholly-owned subsidiary) a binding agreement for the acquisition
of 100% of the Asia Pacific master franchise holder of the Tim Ho Wan brand, and eventually
owned the Tim Ho Wan Brand, as well as of Tim Ho Wan Pte. Ltd. (THWPL) and Dim Sum
Pte. Ltd. (DSPL) (which owns and operates Tim Ho Wan stores in Singapore). Pursuant to these
investments, the Company obtained rights to enter into franchise agreements to operate and
expand Tim Ho Wan in certain areas in the PRC. In October 2019, the total maximum fund of
Titan Dining LP was increased from SG$100 million to SG$200 million. The Company, through
JWPL, increased its capital commitment from SG$45 million to SG$120 million which
constitute 60.0% of the total maximum fund. In October 2020, JWPL purchased the participating
interest of Aragon Investments SPC in Titan Dining LP, increasing the Company’s interest in
the Titan Fund to 85.0%. On November 1, 2021, the Company, through JWPL, announced
amendments to the Limited Partnership Agreement with Titan Dining LP, with the fund size of
Titan increasing to SGD250.0 Million. With the increase in fund size and entry of additional
investors, JWPL’s total commitment to the fund amounts to SGD225.0 Million, comprising 90%
of the increased fund size and total commitments. 3
On November 18, 2019, Hong Yun Hong (Shanghai) Food and Beverages Management Co.
Ltd. (Hong Yun Hong) was incorporated. It is a joint venture in which the Group holds 60%
equity interest through a wholly owned company and DSPL holds the remaining equity interest.
On March 13, 2020, Hong Yun Hong entered into a unit franchise agreement with THWPL
whereby THWPL granted Hong Yun Hong the right and license to open and operate a Tim Ho
Wan store in Shanghai.
Tim Ho Wan serves fresh and made-to-order Cantonese-style dim sum. It offers an assortment
of steamed, fried and baked dim sum, steamed rice dishes, congee, rice rolls and desserts.
As of December 31, 2023, there were 19 Tim Ho Wan stores owned and operated by the Group.
On September 7, 2018, the Company, through Jollibee Foods Corporation (USA), made an
investment of U.S.$12.6 million in Tortazo, LLC (formerly known as Tortas Frontera LLC) in
consideration for 47% of the fully-diluted membership interest therein.
Tortazo is a Mexican fast casual chain in the United States created by Chef Rick Bayless. The
Group believes that its competitive position is differentiated by, among others, its use of high
quality ingredients from top local providers that are named on its menu. Tortazo offers a quality
menu which features tortas (griddle-baked sandwiches), molletes (warm, open-faced
sandwiches), soups, salads, side dishes, a guacamole bar and beverages. It also serves a full
breakfast menu that includes breakfast tortas, cazuelas (stew-like dishes cooked in a traditional
pot of the same name) and a yoghurt bar. Tortazo has an online ordering platform that enables
customers to order food for pick up.
As of December 31, 2021, there were 2 Company-owned and operated Tortazo stores in
operation in the United States. There were also 3 Tortas Frontera stores open, licensed to HMS
Host (2) and Areas (1) to operate.
Panda Express
On September 27, 2018, the Company entered into an agreement to establish a 50/50 joint
venture with Panda Restaurant Group to own and operate Panda Express stores in the
Philippines.
3 On January 1, 2024, the Company announced its additional capital commitment to Titan, with the fund size of Titan increasing
from S$350,000,000 to S$450,000,000, and its participating interest increasing from 90% to 92%.
Page 20
Panda Express offers a menu inspired by the flavours of Chinese cuisine. It offers a wide variety
of entrees, sides, appetizers and desserts. Panda Express also offers Wok Smart™ selections,
menu items that are 300 calories or less and have at least eight grammes of protein, and Family
Feast boxes for groups dining together. Panda Express’ bestselling products include The
Original Orange Chicken®, Beijing Beef® and Honey Walnut Shrimp.
As of December 31, 2023, there were 29 Panda Express stores owned and operated by the Group.
Yoshinoya
On February 15, 2021, the Jollibee Group, through the Parent Company, entered into an
agreement with Yoshinoya International Philippines, Inc. (YIPI) to establish a joint venture
entity to own and expand Yoshinoya restaurants in the Philippines.
The joint venture entity, incorporated as Yoshinoya Jollibee Foods, Inc. on June 18, 2021, is
50% owned by the Parent Company and 50% owned by YIPI. On May 20, 2021, the Parent
company made an initial investment amounting to Php65.0 million.
On October 29, 2021, Yoshinoya executed a Franchise Agreement with YIPI with effective date
on November 1, 2021. Subsequently, Yoshinoya acquired from YIPI and operated the existing
Yoshinoya stores in the Philippines.
Yoshinoya is one of the brands owned by Yoshinoya Holdings Co. Ltd, a Japanese multinational
food restaurant company and the longest-established fast food chain in Japan. Established in
1899, Yoshinoya boasts of more than 120 years of tradition. "Gyudon" beef bowl, which already
became well-known food to everyone in Japan, was originally developed by Yoshinoya.
Milksha
On June 24, 2021, the Company and its subsidiaries, Fresh N’ Famous Foods, Inc. and Mang
Inasal Philippines, Inc. entered into a license agreement with Milkshop International Co., Ltd.
which owns Milksha, a popular Taiwanese bubble tea brand. The agreement grants the exclusive
rights to sell and market products under the Milksha brand in the Company’s stores. The
Company sells Milksha products in Chowking stores and could possibly expand it to its other
Philippine restaurant brands.
On November 3, 2021, the Jollibee Group disclosed that JWPL will purchase a majority stake
in Milkshop International Co. Ltd. (Milkshop), the entity that owns Milksha, a popular
Taiwanese bubble tea brand. JWPL will purchase shares equivalent to 51% ownership in
Milkshop for approximately USD12.8 million. One of the co-founders of Milkshop will
continue to retain the 49% interest in Milkshop. The completion of this transaction was subject
to certain closing conditions, including regulatory approvals. The transaction was completed on
February 22, 2022. The final price at closing was USD12.8 million.
As of December 31, 2023, there were 310 Milksha stores in operation in four countries and
territories: including Taiwan, Hong Kong, Australia, and the United Kingdom. As of the same
date, there were 287 Milksha stores in Taiwan, of which 20 were owned and operated by the
Company and 267 were franchised.
On August 3, 2023, the company entered into an agreement with Food Collective, Pte. Ltd
(FCPL) to establish a joint venture company to own and operate Common Man Coffee Roasters
and Tiong Bahru Bakery restaurants in the Philippines.
Common Man Coffee Roasters operates all-day dining restaurants in Singapore and Malaysia,
Page 21
with an aim to be a Champion for Specialty Coffee and the Best all-day dining concept in Asia.
Common Man Coffee Roasters also does coffee roasting, sale of coffee products and operates a
Coffee Barista Academy.
As of December 2023, Common Man Coffee Roasters had 1 store in the Philippines. The
Company intends to launch Tiong Bahru Bakery within 2024.
As communities begin the recovery from the COVID-19 pandemic, Jollibee Group Foundation
embarked on providing them further support through its programs in agriculture, disaster
response and education.
In 2023, FEP farmer groups delivered one million three hundred sixty-seven thousand
(1,367,000) kilos of vegetables to the Jollibee Group, earning one million nine hundred thousand
(1,900,000) dollars’ worth of sales. Two new farmer groups were able to start delivering onions
to the company. Since the program began in 2008, twenty-five (25) farmer groups have
delivered over ten (10) million kilos of vegetables to Jollibee Group, equivalent to over eight
(8) million dollars’ worth of sales.
JGF recognizes the need for a comprehensive set of interventions to develop farmers’ mindsets
and business skills, enabling them to successfully engage with the company and other corporate
markets. Close cooperation and coordination among various stakeholders, including local
government units, non-government organizations, financing institutions, academic institutions,
and the farmers themselves, are essential. Within Jollibee Group, collaboration between
different business units such as Procurement, Research and Development, Commissaries,
Logistics, and Finance was crucial to strengthen inclusive business practices and provide the
necessary support for farmers to participate in economic success.
JGF partnered with PUM Netherlands Senior Experts, seed companies, and Jollibee Group’s
Research and Development team to identify suitable onion and bell pepper varieties that meet
the company’s requirements and are easier for farmers to produce. Recently, JGF collaborated
with BanKo, the micro-finance arm of the Bank of the Philippine Islands, to launch a financing
program offering FEP farmers access to low-interest loans. These initiatives demonstrate JGF’s
systemic approach, leveraging core strengths and fostering collaboration.
As a result of the initial partnership with the Department of Agriculture (DA) in 2022, DA
approached JGF in 2023 to expand the collaboration to enable their offices nationwide to
become agents of the FEP approach. This is part of DA’s implementation of the Philippine Rural
Development Program (PRDP) Scale Up funded by DA and the World Bank. JGF and DA
signed a Memorandum of Agreement to train 200 DA personnel over the next three years, with
the first training conducted in 2023.
Jollibee Group FoodAID is a program in the Philippines that brings together the efforts of the
Jollibee Group to provide relief and aid during times of disaster. Since 2013, this program has
been actively responding to calls for help and ensuring that communities affected by disasters
have immediate access to food. By utilizing our expertise in producing and distributing food
items that are easy to prepare and store, the program has been able to support communities in
provinces and regions that have been hit by calamities, including the most recent COVID-19
Page 22
JGF has implemented the ACE Scholarship Program since 2005 to empower underprivileged
Filipino youth. In recent years, JGF focused on strengthening the curriculum aspect by
establishing Agro-Enterprise Resource Centers (AERCs) to support agricultural initiatives.
These collaborations with ACE partners involve curriculum development and scholarships,
aiming to foster interest in agro-entrepreneurship among the youth. The AERCs offer the Agro-
entrepreneurship National Certificate II course, accredited by the Technical Education and
Skills Development Authority (TESDA). Currently, there are five (5) AERCs located in
different regions of the Philippines: Don Bosco Training Centers in San Jose City, Nueva Ecija,
Mati City, Davao Oriental and in Legazpi City, Albay as well as Sacred Heart Savings
Cooperative community-based training center located in Ilocos Sur and the Lamac Multi-
Purpose Cooperative in Cebu. JGF has supported over a two thousand seven hundred scholars
since the start of the ACE program.
OTHERS
Other subsidiaries of the Company include FREEMONT FOODS CORPORATION, a wholly-owned
subsidiary which owns and operates the Company’s Jollibee stores across the country, primarily
in the Visayas and Mindanao areas, and GRANDWORTH RESOURCES CORPORATION. 4
4 Grandworth Resources Corporation no longer owns or leases real property as of December 31, 2023.
Page 23
TRADEMARK REGISTRATION
Trademark Records by Country
The Company’s subsidiaries have likewise procured the relevant trademark registrations
for their respective brands.
JOLLIBEEMASCOT
Afghanistan 5987 07-May-16 17632 20-Nov-16 Registered 29
DESIGN
JOLLIBEEMASCOT
Afghanistan 5988 07-May-16 17633 20-Nov-16 Registered 43
DESIGN
JOLLIBEEMASCOT
Australia 1666168 23-Dec-14 1666168 23-Dec-14 Registered 29,43
DESIGN
JOLLIBEEMASCOT
Australia 654121 24-Feb-95 654121 24-Feb-15 Registered 42
DEVICE
16,21,25,
Australia BEEHEADDEVICE 2035489 06-Sep-19 2035489 06-Sep-19 Registered
28,35
16,21,25,
Australia JOLLIBEE (wordmark) 2035488 06-Sep-19 2035488 06-Sep-19 Registered
28,35
29,30,32,
Australia BEEHEADDEVICE 2097494 19-Jun-20 2097494 19-Jun-20 Registered
39,43
Australia CHICKENJOY (wordmark) 2097498 19-Jun-20 2097498 19-Jun-20 Registered 29,43
CHICKENJOYlogo
Australia 2097500 19-Jun-20 2097500 19-Jun-20 Registered 29,43
(incolor)
EVERYDAY
Australia (wordmark) 2107278 29-Jul-20 2107278 29-Jul-20 Registered 35,43
DELICIOUS
29,30,32,
Australia JOLLIBEE (wordmark) 2097492 19-Jun-20 2097492 19-Jun-20 Registered
39,43
JOLLIBEEMASCOT
Australia 2097495 19-Jun-20 2097495 19-Jun-20 Registered 29,30,32,
DESIGN
39,43
JollibeeStacked 29,30,32,
Australia 2097497 19-Jun-20 2097497 19-Jun-20 Registered
Logo(incolor) 39,43
JOLLIBEEMASCOT
Bahrain 80978 15-Apr-10 80978 15-Apr-20 Registered 29
DESIGN
JOLLIBEEMASCOT
Bahrain 80979 15-Apr-10 80979 15-Apr-20 Registered 30
DESIGN
JOLLIBEE&
Bahrain 1070/95 02-Aug-95 S1718 02-Aug-15 Registered 42
MASCOTDEVICE
JOLLIBEE(IN
Bahrain 116614 28-Jun-16 116614 06-Jun-17 Registered 43
ARABICSCRIPT)
JOLLIBEEGREAT
BURGERSGREAT
Bahrain 1068/95 02-Aug-95 TM19220 02-Aug-15 Registered 29
CHICKEN&
DEVICE
JOLLIBEEGREAT
BURGERSGREAT
Bahrain 1069/95 02-Aug-95 SM1717 02-Aug-15 Registered 42
CHICKEN&
DEVICE
JOLLIBEELOGO&
Bahrain 80975 15-Apr-10 80975 15-Apr-20 Registered 29
DEVICE
JOLLIBEELOGO&
Bahrain 80976 15-Apr-10 80976 15-Apr-20 Registered 30
DEVICE
JOLLIBEELOGO&
Bahrain 80977 15-Apr-10 80977 15-Apr-20 Registered 43
DEVICE
JOLLIBEEMASCOT
Bahrain 96798 17-Mar-13 96798 17-Mar-13 Registered 29
DESIGN
JOLLIBEEMASCOT
Bahrain 96786 17-Mar-13 96786 17-Mar-13 Registered 43
DESIGN
Brunei JOLLIBEEMASCOT
43918 14-Mar-13 43918 14-Mar-13 Registered 29,42
Darussalam DESIGN
Brunei YUMWORD
(wordmark) 43937 14-Mar-13 43937 14-Mar-13 Registered 29
Darussalam MARK–MAIN
Brunei 16,21,25,
BEEHEADDEVICE 50957 21-Sep-19 50957 21Sep-19 Registered
Darussalam 28,35
Brunei 16,21,25,
JOLLIBEE (wordmark) 50958 21-Sep-19 50958 21Sep-19 Registered
Darussalam 28,35
16,21,25,
Cambodia BEEHEADDEVICE 87866 6-Sep-19 78019 06-Oct-20 Registered
28,35
JOLLIBEEMASCOT
Cambodia 50597 12-Mar-13 47540 12-Mar-23 Registered 29
DESIGN
JOLLIBEEMASCOT
Cambodia 50598 12-Mar-13 47541 12-Mar-23 Registered 43
DESIGN
16,21,25,
Cambodia JOLLIBEE (wordmark) 87865 06-Sep-19 85034 08-Sept-21 Registered
28,35
29,30,32,
Canada JOLLIBEE 1324317 16-Nov-06 TMA761476 11-Mar-25 Registered
42,43
JOLLIBEEGREAT
BURGERSGREAT
Canada 783671 26-May-95 TMA727149 28-Oct-28 Registered 29,42
CHICKEN&
DESIGN
JOLLIBEEHALO
Canada (wordmark) 1786752 13-Jun-16 TMA1026168 17-Jun-19 Registered 29,30
HALOSUNDAE
JOLLIBEEMASCOT
Canada 1617851 20-Mar-13 TMA965563 13-Mar-17 Registered 29,43
DESIGN
JOLLIBEE&
Canada BeeHeadDesign 2096057 31-Mar-21 TMA1220321 05-Feb-24 Registered 43
mark(incolour)
16,21,25,
Canada BeeHeadDevice 1983157 30-Aug-19 Pending
28,35
JOLLIBEE 16,21,25,
Canada (wordmark) 1983158 30-Aug-19 Pending
(wordmark) 28,35
JOLLIBEEBEEHEAD
China DEVICEAND
5149268 06-Feb-06 5149268 7-June-19 Registered 1
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149237 06-Feb-06 5149237 07-June-19 Registered 2
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149236 06-Feb-06 5149236 07-Aug-13 Registered 3
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149235 06-Feb-06 5149235 07-June-19 Registered 4
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149234 06-Feb-06 5149234 11-Nov-19 Registered 5
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
65431839 21-Jun-22 65431839 6-Sept-23 Registered 5
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEE
China HEADDEVICEAND
70039081 8-Mar-23 70039081 28-Nov-23 Registered 5
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149233 06-Feb-06 5149233 21-Mar-19 Registered 6
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149232 06-Feb-06 5149232 14-Jan-19 Registered 7
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149231 06-Feb-06 5149231 21-Nov-19 Registered 8
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149230 06-Feb-06 5149230 21-Mar-19 Registered 9
(Mainland) CHINESE
CHARACTERS
Page 29
JOLLIBEEBEEHEAD
China DEVICEAND
5149244 06-Feb-06 5149244 07-June-19 Registered 15
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149243 06-Feb-06 5149243 28-Jul-19 Registered 16
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149242 06-Feb-06 5149242 21-Jun-19 Registered 17
(Mainland) CHINESE
CHARACTERS
China JOLLIBEEBEEHEAD
4740573 24-Jun-05 4740573 28-May-20 Registered 18
(Mainland) DEVICE
JOLLIBEEBEEHEAD
China DEVICEAND
5149240 06-Feb-06 5149240 21-Jun-19 Registered 19
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149239 06-Feb-06 5149239 07-Aug-20 Registered 20
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149238 06-Feb-06 5149238 21-Dec-21 Registered 21
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149257 06-Feb-06 5149257 02-Jun-19 Registered 22
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149256 06-Feb-06 5149256 07-Jun-19 Registered 23
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149255 06-Feb-06 5149255 14-Jan-20 Registered 24
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149252 06-Feb-06 5149252 07-July-19 Registered 26
(Mainland) CHINESE
CHARACTERS
Page 30
JOLLIBEEBEEHEAD
China DEVICEAND
5149270 06-Feb-06 5149270 28-Aug-19 Registered 44
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
5149269 06-Feb-06 5149269 28-Aug-19 Registered 45
(Mainland) CHINESE
CHARACTERS
China JOLLIBEEANDBEE
5149241 06-Feb-06 5149241 14-Apr-14 Registered 18
(Mainland) HEADDEVICE
China JOLLIBEEANDBEE
4740572 24-Jun-05 4740572 07-May-19 Registered 20
(Mainland) HEADDEVICE
China JOLLIBEEANDBEE
4740571 24-Jun-05 4740571 07-May-19 Registered 21
(Mainland) HEADDEVICE
China JOLLIBEEANDBEE
4740576 24-Jun-05 4740576 07-Feb-19 Registered 26
(Mainland) HEADDEVICE
China JOLLIBEEANDBEE
4740590 24-Jun-05 4740590 07-Feb-19 Registered 28
(Mainland) HEADDEVICE
China JOLLIBEEANDBEE
4740575 24-Jun-05 4740575 07-Mar-18 Registered 31
(Mainland) HEADDEVICE
China JOLLIBEEANDBEE
4740578 24-Jun-05 4740578 21-Feb-19 Registered 40
(Mainland) HEADDEVICE
China
JOLLIBEE 75058937 8-Nov-23 Pending 43
(Mainland)
China
JOLLIBEE 4740579 24-Jun-05 4740579 7-May-19 Registered 16
(Mainland)
China
JOLLIBEE 5149253 06-Feb-06 5149253 21-Apr-11 Registered 25
(Mainland)
China
JOLLIBEE 5149261 06-Feb-06 5149261 28-May-09 Registered 35
(Mainland)
China
JOLLIBEE 5149271 06-Feb-06 5149271 28-Aug-19 Registered 43
(Mainland)
China
BEEHEADDEVICE 75045913 8-Nov-23 Pending 43
(Mainland)
China
BEEHEADDEVICE 5149254 06-Feb-06 5149254 28-Jan-20 Registered 25
(Mainland)
China
BEEHEADDEVICE 5149262 06-Feb-06 5149262 28-May-19 Registered 35
(Mainland)
China
BEEHEADDEVICE 4740580 24-Jun-05 4740580 21-Feb-19 Registered 41
(Mainland)
China
BEEHEADDEVICE 5149272 06-Feb-06 5149272 14-Mar-14 Registered 43
(Mainland)
Page 32
China JOLLIBEEMASCOT
12365588 02-Apr-13 12365588 14-Sep-14 Registered 43
(Mainland) DESIGN
China JOLLIBEEMASCOT
12365391 02-Apr-13 12365391 14-Sep-14 Registered 29
(Mainland) DESIGN
China EVERYDAY 35
(wordmark) 12365553 02-Apr-13 12365553 14-Sep-14 Registered
(Mainland) DELICIOUS
China
CHAMP (wordmark) 12365494 02-Apr-13 12365494 14-Sep-14 Registered 30
(Mainland)
China 29
JOLLIBEE 12365378 02-Apr-13 12365378 14-Sep-14 Registered
(Mainland)
China 29
BEEHEADDEVICE 12365367 02-Apr-13 12365367 14-Sep-14 Registered
(Mainland)
BEEHEADDEVICE
China ANDJOLLIBEEIN 12889863 12889863 07-Jan-15
02-Apr-13 Registered 18
(Mainland) CHINESE
CHARACTERS
Page 34
China JOLLIBEEMASCOT
955790 03-May-95 955790 28-Feb-17 Registered 42
(Mainland) DESIGN
China JOLLIBEEMASCOT
951389 01-Jun-95 951389 21-Feb-17 Registered 29
(Mainland) DESIGN
JOLLIBEEINCHINESE
China
CHARACTERS& 1019097 02-Nov-95 1019097 28-May-17 Registered 29
(Mainland)
DESIGN
JOLLIBEEINCHINESE
China
CHARACTERS& 980654 30-Aug-95 980654 14-April-17 Registered 32
(Mainland)
DESIGN
JOLLIBEEINCHINESE
China
CHARACTERS& 1019874 30-Aug-95 1019874 05-May-17 Registered 42
(Mainland)
DESIGN
China JOLLIBEEINCHINESE
1356544 28-Jul-98 1356544 21-Jan-20 Registered 30
(Mainland) CHARACTERS
China JOLLIBEEINCHINESE
1359132 28-Jul-98 1359132 28-Jan-20 Registered 29
(Mainland) CHARACTERS
China JOLLIBEEINCHINESE
1369995 28-Jul-98 1369995 28-Feb-20 Registered 42
(Mainland) CHARACTERS
CHICKENJOYAND
China CHICKENJOY IN 43
33326595 05-Sep-18 33326595 07-Sep-19 Registered
(Mainland) CHINESE
CHARACTERS
CHICKENJOY IN
China 43
CHINESE 33340378 05-Sep-18 33340378 05-Sep-18 Registered
(Mainland)
CHARACTERS
CHICKENJOYAND
China CHICKENJOY IN 29
33345388 05-Sep-18 33345388 05-Sep-18 Registered
(Mainland) CHINESE
CHARACTERS
CHICKENJOY IN
China
CHINESE 33338097 05-Sep-18 33338097 05-Sep-18 Registered 29
(Mainland)
CHARACTERS
China 3
BEEHEADDEVICE 34653301 13-Nov-18 34653301 13-Nov-18 Registered
(Mainland)
China
JOLLIBEE 34643037 13-Nov-18 34643037 13-Nov-18 Registered 3
(Mainland)
JOLLIBEE IN
China
CHINESE 34650418 13-Nov-18 34650418 13-Nov-18 Registered 3
(Mainland)
CHARACTERS
Page 35
China
BEEHEADDEVICE 34638376 13-Nov-18 34638376 13-Nov-18 Registered 35
(Mainland)
China 35
JOLLIBEE 34634663 13-Nov-18 34634663 13-Nov-18 Registered
(Mainland)
JOLLIBEE IN 35
China
CHINESE 34644930 13-Nov-18 34644930 13-Nov-18 Registered
(Mainland)
CHARACTERS
China 16,21,
JOLLIBEE 41539772 11-Oct-19 41539772 07-Sept-20 Registered
(Mainland) 25,28,35
China
JOLLIBEE (wordmark) 41440421 30-Sep-19 41440421 21-Jul-20 Registered 39
(Mainland)
China
JOLLIBEE (wordmark) 41500976 09-Oct-19 41500976 21-Jul-20 Registered 43
(Mainland)
China 16,21,
BEEHEADDEVICE 41539770 11-Oct-19 41539770 14-Aug-20 Registered
(Mainland) 25,28,35
China
BEEHEADDEVICE 41440942 30-Sep-19 41440942 21-Jul-20 Registered 39
(Mainland)
China
BEEHEADDEVICE 41497346 10-Sep-19 41497346 07-Aug-20 Registered 43
(Mainland)
JOLLIBEEBEEHEAD
China DEVICEAND
41523478 10-Oct-19 41523478 28-Jun-20 Registered 16
(Mainland) CHINESE
CHARACTERS
JOLLIBEEBEEHEAD
China DEVICEAND
41523846 10-Oct-19 41523846 14-Jun-20 Registered 24
(Mainland) CHINESE
CHARACTERS
JOLLIBEE IN
China
CHINESE 41524260 10-Oct-19 41524260 14-Jun-20 Registered 43
(Mainland)
CHARACTERS
China JOLLIBEEMASCOT
41506279 09-Oct-19 41506279 21-Jul-20 Registered 43
(Mainland) DESIGN
14,16
18,21
JOLLIBEEBEEHEAD
24,25
China DEVICEAND
48523848 30-Jul-20 48523848 20-Jul-21 Registered 28,29
(Mainland) CHINESE
CHARACTERS
30,32
35,39
43
JOLLIBEEBEEHEAD
China DEVICEAND
65358089 16-Jun-22 65358089 28-Dec-22 Registered 21
(Mainland) CHINESE
CHARACTERS
China
JOLLIBEEBEE 51586901 25-Nov-20 51586901 7-Jun-2022 Registered 25&28
(Mainland)
China
(Mainland) BEEHEADDEVICE 52130470 14-Dec-20 52130470 14-Jul-2022 Registered 21
China
(Mainland) BEEHEADDEVICE 55824069 06-May-21 55824069 28-Nov-21 Registered 30,32
China
(Mainland) BEEHEADDEVICE 55806876 06-May-21 55806876 28-Nov-21 Registered 9
Page 36
JOLLIBEEMASCOT
Egypt 95742 18-May-95 95742 18-May-15 Registered 42
DEVICE
European
JOLLYBEE (wordmark) 010610632 02-Feb-12 010610632 24-May-12 Registered 25
Union
JOLLIBEEMASCOT
HongKong 199904465 12-May-95 199904465 12-May-95 Registered 42
DESIGN
HOMEOFTHE
HongKong FAMOUS (wordmark) 304295557 09-Oct-17 304295557 09-Oct-17 Registered 29,43
CHICKENJOY
Page 37
29,
India JOLLIBEE&DEVICE 1367743 29-Jun-05 1367743 29-Jun-15 Registered
30
JOLLIBEEMASCOT 29,
India 2855779 03-Dec-14 2855779 Registered
DESIGN 43
29,
India JOLLIBEE (wordmark) 2860855 10-Dec-14 2860855 10-Dec-14 Registered
43
India JOLLYSPAGHETTI (wordmark) 3252108 05-May-16 3252108 05-May-16 Registered 30
India JUICYLICIOUS (wordmark) 3339899 18-Aug-16 3339899 18-Aug-16 Registered 29
D00-2012-
Indonesia BEEHEADDEVICE 11-May-12 IDM000441097 05-Dec-14 Registered 29
022535
JOLLIBEE
BEEFBURGER
Indonesia GREATBURGERS R5853/2015 09-Apr-15 IDM000431821 24-Apr-15 Registered 42
GREATCHICKEN&
DEVICE
JOLLIBEE
BEEFBURGER
Indonesia GREATBURGERS R7455/2015 06-May-15 IDM000431820 24-Apr-15 Registered 29
GREATCHICKEN&
DEVICE
JOLLIBEEMASCOT
Indonesia D002015001763 16-Jan-15 IDM000567534 09-Mar-17 Registered 25
DESIGN
JOLLIBEEMASCOT
Indonesia J00.2013.015228 03-Apr-13 IDM000485987 03-Apr-23 Registered 43
DESIGN
JOLLIBEEMASCOT
Indonesia D00.2013.015232 03-Apr-13 IDM000491932 03-Apr-23 Registered 29
DESIGN
JOLLIBEEMASCOT 29,
Italy MI2013C002502 13-Mar-13 1561496 13-Mar-23 Registered
DESIGN 43
16,21,25,
Italy BEEHEADDEVICE 302019000069308 26-Sep-19 302019000069308 15-Jul-20 Registered
28,35
16,21,25,
Italy JOLLIBEE (wordmark) 302019000069296 26-Sep-19 302019000069296 15-Jul-20 Registered
28,35
Page 40
29,30,32,
Japan BEEHEADDEVICE 2014-104750 11-Dec-14 5814835 18-Dec-15 Registered
43
JOLLIBEEMASCOT 29,30,32,
Japan 2014-104751 11-Dec-14 5814836 18-Dec-15 Registered
DESIGN 43
29,30,32,
Japan JOLLIBEE (wordmark) 2014-104749 11-Dec-14 5854408 27-May-16 Registered
43
Korea-
45-2012- 29,
Republicof BEEHEADDEVICE 07-May-12 48276 21-Feb-14 Registered
0002341 43
(South)
Korea-
45-2012- 29,
Republicof CHICKENJOY 07-May-12 46615 17-Oct-23 Registered
0002342 43
(South)
Korea-
45-2012- 29,
Republicof JOLLIBEE 07-May-12 48272 21-Feb-14 Registered
0002340 43
(South)
Korea-
JOLLIBEE& 29,
Republicof 40-0358457 21-Mar-17 Registered
DESIGN 30
(South)
Page 41
Korea-
JOLLIBEEMASCOT 45-2013- 29,
Republicof 14-Mar-13 48629 18-Mar-14 Registered
DESIGN 0001412 43
(South)
Korea-
40-2013-
Republicof YUM 31-Dec-13 40-1080537 09-Jan-15 Registered 30
0087644
(South)
Korea-
40-2013-
Republicof CHAMP 31-Dec-13 40-1071265 21-Nov-14 Registered 30
0087645
(South)
HOMEOFTHE
Kuwait FAMOUS (wordmark) 194303 08-Oct-17 198215 08-Oct-17 Registered 43
CHICKENJOY
HOMEOFTHE
Kuwait FAMOUS (wordmark) 194302 08-Oct-17 197558 08-Oct-17 Registered 29
CHICKENJOY
Kuwait JOLLIBEE 129535 23-Apr-12 114231 23-Apr-22 Registered 29
JOLLIBEE(WORD)
Kuwait 32462 26-Nov-95 29403 25-Nov-15 Registered 32
ANDDEVICE
JOLLIBEELOGO
Kuwait 112416 13-Jun-10 95848 13-Jun-20 Registered 43
ANDDEVICE
JOLLIBEELOGO
Kuwait 112415 13-Jun-10 95848 13-Jun-20 Registered 30
ANDDEVICE
JOLLIBEELOGO
Kuwait 112414 13-Jun-10 95847 13-Jun-20 Registered 29
ANDDEVICE
JOLLIBEEMASCOT
Kuwait 138827 02-Apr-13 131200 02-Apr-23 Registered 29
DESIGN
JOLLIBEEMASCOT
Kuwait 138828 02-Apr-13 131201 02-Apr-23 Registered 43
DESIGN
JOLLIBEEMASCOT
Macau N/075126(775) 29-Apr-13 N/075126(775) 14-Jan-14 Registered 29
DESIGN
JOLLIBEEMASCOT
Macau
DESIGN N/075132(123) 29-Apr-13 N/075132(123) 14-Jan-14 Registered 43
EVERYDAY
Macau (wordmark) N/075131(398) 29-Apr-13 N/075131(398) 14-Jan-14 Registered 35
DELICIOUS
JOLLIBEEINCHINESE
Macau N/065046(329) 23-Apr-12 N/065046(329) 27-Feb-20 Registered 43
CHARACTERS
JOLLIBEEINCHINESE
Macau N/065041(628) 23-Apr-12 N/065041(628) 27-Feb-20 Registered 29
CHARACTERS
HOMEOFTHE
Macau FAMOUS N/109778(800) 11-Mar-16 N/109778(800) 13-Oct-16 Registered 43
CHICKENJOY
HOMEOFTHE
Macau FAMOUS N/109777(796) 11-Mar-16 N/109777(796) 13-Oct-16 Registered 29
CHICKENJOY
Macau JOLLYSPAGHETTI N/117479(381) 15-Nov-16 N/117479(381) 26-Apr-17 Registered 30
HOMEOFTHE
Malaysia FAMOUS (wordmark) 2015070163 27-Nov-15 2015070163 27-Nov-15 Registered 29
CHICKENJOY
HOMEOFTHE
Malaysia FAMOUS (wordmark) 2015070165 27-Nov-15 2015070165 27-Nov-15 Registered 43
CHICKENJOY
JOLLIBEEMASCOT
Malaysia 2000-02358 03-Mar-00 2000-02358 27-Mar-20 Registered 43
(SERIESOF3)
JOLLIBEEMASCOT
Malaysia 2014069071 17-Dec-14 2014069071 17-Dec-14 Registered 25
DESIGN
JOLLIBEEMASCOT
Malaysia 2013052205 13-Mar-13 2013052205 13-Mar-23 Registered 43
DESIGN
JOLLIBEEMASCOT
Malaysia 2013052204 13-Mar-13 2013052204 13-Mar-23 Registered 29
DESIGN
JOLLIBEEMASCOT
Myanmar 14-Dec-20 Pending 29,43
DESIGN
BEEHEADDEVICE
Myanmar (BLACK&WHITE)- 14-Dec-20 Pending 29,43
MAIN
BEEDEVICE
[JOLLIBEE
Myanmar MASCOTDESIGN 14-Dec-20 Pending 29,43
(BLACK&WHITE)-
MAIN]
16,21,25,
Myanmar BEEHEADDEVICE 14-Dec-20 Pending
28,35
CHAMPWORD
Myanmar 14-Dec-20 Pending 29
MARK-MAIN
CHICKENJOY
Myanmar WORDMARK- 14-Dec-20 Pending 29,43
MAIN
EVERYDAY
Myanmar DELICIOUS 14-Dec-20 Pending 35
SLOGAN-MAIN
HOMEOFTHE
Myanmar FAMOUS 14-Dec-20 Pending 29,43
CHICKENJOY
JOLLIBEE(WORD 16,21,25,
Myanmar 14-Dec-20 Pending
MARK) 28,35
JOLLIBEE(WORD
Myanmar 14-Dec-20 Pending 29,43
MARK)-MAIN
YUMWORD
Myanmar 14-Dec-20 Pending 29
MARK-MAIN
JOLLIBEEGREAT
BURGERSGREAT
NewZealand 254483 06-Oct-95 254483 06-Oct-16 Registered 29
CHICKEN&
DEVICE
Page 50
HOMEOFTHE
Oman FAMOUS (wordmark) 113349 08-Oct-17 113349 04-Jul-18 Registered 29
CHICKENJOY
HOMEOFTHE
Oman FAMOUS (wordmark) 113350 08-Oct-17 113350 04-Jul-18 Registered 43
CHICKENJOY
JOLLIBEE(IN
Oman 103059 7-Jun-16 103059 17-Jul-17 Registered 43
ARABICSCRIPT)
Oman JOLLIBEE 69397 20-Jul-11 69397 04-Mar-14 Registered 29
JOLLIBEEMASCOT
Oman 79627 13-Mar-13 79627 13-Mar-23 Registered 29
DESIGN
JOLLIBEEMASCOT
Oman 79628 13-Mar-13 79628 13-Mar-23 Registered 43
DESIGN
16,18,20,
TWIRLIEMASCOT
Philippines 4-2008-007561 25-Jun-08 4-2008-007561 23-Jul-19 Registered 21,24,25,
DESIGN
27,28,41
16,18,20,
YUMMASCOT
Philippines 4-2008-007565 25-Jun-08 4-2008-007565 23-Jul-19 Registered 21,24,25,
DESIGN
27,28,41
16,18,20,
HETTYMASCOT
Philippines 4-2008-007563 25-Jun-08 4-2008-007563 23-Jul-19 Registered 21,24,25,
DESIGN
27,28,41
16,18,20,
JOLLIBEEMASCOT
Philippines 4-2008-007562 25-Jun-08 4-2008-007562 23-Jul-19 Registered 21,24,25,
DESIGN
27,28,41
LANGHAP
Philippines LANGHAPSARAP 4-2009-003033 23-Mar-09 4-2009-003033 12-Nov-19 Registered 29,30
SARAP
Philippines JOLLIBEECHAMP 4-2009-006900 13-Jul-09 4-2009-006900 12-Nov-19 Registered 29,35
Philippines JollyHotdog 4-2009-006903 13-Jul-09 4-2009-006903 24-Dec-19 Registered 29,35
JOLLIBEE
Philippines 4-2009-006901 13-Jul-09 4-2009-006901 24-Dec-19 Registered 29,35
BREAKFASTJOYS
Philippines JOLLIBEE JOLLIBEE 4-2000-007421 31-Aug-00 4-2000-007421 24-Sep-15 Registered 16,28
29,30,32
Philippines JOLLISAVERS JOLLISAVERS 4-2015-503892 14-Jul-15 4-2015-503892 12-Nov-15 Registered
&43
DITOANG
DITOANGSARAP
Philippines SARAP 4-2013-001090 31-Jan-13 4-2013-001090 20-Feb-15 Registered 35
MAGING
MAGING
DITOANG
DITOANGSARAP
SARAP
Philippines MAGING 4-2013-001089 31-Jan-13 4-2013-001089 20-Feb-15 Registered 35
MAGING
PAMILYA
PAMILYA
29,30,32
Philippines JOLLIBEE JOLLIBEE 4-2000-004772 08-Jun-00 4-2000-004772 10-Mar-16 Registered
&42
JOLLIBEEMASCOT
Philippines 4-2013-002707 11-Mar-13 4-2013-002707 20-Jun-23 Registered 29&43
DESIGN
16,18,20,
JOLLITOWNAND
Philippines 4-2008-005395 08-May-08 4-2008-005395 25-Mar-20 Registered 24,25,27,
DEVICE
28&41
JollibeeBig
JollibeeBigBurger
Philippines BurgerSteak 4-2015-506501 11-Nov-15 4-2015-506501 06-Apr-23 Registered 29
SteakSupreme
Supreme
JollibeeBurger JollibeeBurger
Philippines 4-2015-506500 11-Nov-15 4-2015-506500 06-Apr-23 Registered 29
SteakSupreme SteakSupreme
16,28&
Philippines JOLLYJOYBOX JOLLYJOYBOX 4-2015-507151 17-Dec-15 4-2015-507151 17-Aug-17 Registered
35
16,28&
Philippines 3-DBOXDESIGN 4-2015-507226 22-Dec-15 4-2015-507226 27-Oct-16 Registered
35
ULTIMATE ULTIMATE
Philippines 4-2013-006004 24-May-13 Pending 29
BURGERSTEAK BURGERSTEAK
Page 53
29,30&
Philippines Jollibee 4-2010-002055 24-Feb-10 4-2010-002055 22-Jul-20 Registered
43
JOLLIBEEFAMILY
VALUESAWARDS
Philippines CELEBRATING 4-2013-010436 02-Sep-13 4-2013-010436 12-Jun-14 Registered 35
EXEMPLARY
FILIFINOFAMILIES
Philippines GRAVYLICIOUS GRAVYLICIOUS 4-2016-503206 28-Jun-16 4-2016-503206 01-Sep-16 Registered 29
POPOMASCOT
Philippines 4-2010-005369 20-May-10 4-2010-005369 14-Oct-20 Registered 16&41
HOUSE
TWIRLIEMASCOT
Philippines 4-2010-005370 20-May-10 4-2010-005370 14-Oct-20 Registered 16&41
HOUSE
YUMMASCOT
Philippines 4-2010-005371 20-May-10 4-2010-005371 14-Oct-20 Registered 16&41
HOUSE
HETTYMASCOT
Philippines 4-2010-005368 20-May-10 4-2010-005368 14-Oct-20 Registered 16&41
HOUSE
JOLLYWORD
Philippines JOLLY 4-2013-012443 16-Oct-13 4-2013-012443 15-Oct-16 Registered 29,30,32
MARK-MAIN
JOLLIBEEMASCOT
Philippines 4-2010-005367 20-May-10 4-2010-005367 21-Oct-20 Registered 16&41
HOUSE
Philippines YUM YUM 4-2003-008177 04-Sep-03 4-2003-008177 11-Nov-20 Registered 29,43
JOLLIBEESUPER JOLLIBEESUPER
Philippines 4-2005-002450 15-Mar-05 4-2005-002450 18-Dec-16 Registered 43
MEALS MEALS
JOLLIBEEKIDS
Philippines CLUBINSIDEA 4-2010-005303 20-May-10 4-2010-005303 23-Dec-20 Registered 16,35
CIRCLE
JOLLIBEEKIDS
Philippines CLUBINSIDEA 4-2010-005302 20-May-10 4-2010-005302 31-Dec-20 Registered 16,35
CIRCLE
P99PERFECT P99PERFECT 29,30,32
Philippines 4-2016-504736 14-Sep-16 4-2016-504736 15-Feb-18 Registered
PAIRS PAIRS &43
29,30,32
Philippines PERFECTPAIRS PERFECTPAIRS 4-2016-504735 14-Sep-16 4-2016-504735 22-Dec-16 Registered
&43
29,30,32
Philippines P99PAIRS P99PAIRS 4-2016-504734 14-Sep-16 4-2016-504734 05-Apr-18 Registered
&43
JOLLYCRISPY
JOLLYCRISPY
Philippines FLAVORED 4-2016-505391 20-Oct-16 4-2016-505391 10-Feb-22 Registered 29
FLAVOREDFRIES
FRIES
JOLLYCRISPY
Philippines FLAVOREDFRIES 4-2016-505392 20-Oct-16 4-2016-505392 23-May-22 Registered 29
(stylized)
JOLLYKIDDIE
Philippines 4-2016-506501 15-Dec-16 4-2016-506501 25-May-17 Registered 16&35
MEAL
JOLLYKIDDIE
Philippines 4-2016-506504 15-Dec-16 4-2016-506504 06-Jul-17 Registered 16&35
MEAL
Page 54
16,21,25,
JOLLIBEEMASCOT 28,29,30,
Philippines 4-2019-509214 21-Dec-19 4-2019-509214 03-Jul-20 Registered
DESIGN 32,35,39
&43
16,21,25,
JOLLIBEEMASCOT 28,29,30,
Philippines 4-2019-509215 21-Dec-19 4-2019-509215 03-Jul-20 Registered
DESIGN 32,35,39
&43
Page 55
16,21,25,
JOLLIBEEMASCOT
Philippines 4-2020-518397 23-Nov-20 4-2020-518397 06-Aug-21 Registered 28,30,32,
DESIGN
35&39
16,21,25,
Philippines BEEHEADDESIGN 4-2020-518398 23-Nov-20 4-2020-518398 24-Sep-21 Registered 28,30,32
&35
Philippines JOLLIBEE JOLLIBEE 4-2020-518409 23-Nov-20 4-2020-518409 07-May-21 Registered 28&35
Philippines CHICKENJOY CHICKENJOY 4-2020-518403 23-Nov-20 4-2020-518403 11-Apr-21 Registered 29
Philippines CRISPYLICIOUS CRISPYLICIOUS 4-2020-518404 23-Nov-20 4-2020-518404 11-Apr-21 Registered 29&43
Philippines JUICYLICIOUS JUICYLICIOUS 4-2020-518405 23-Nov-20 4-2020-518405 11-Apr-21 Registered 29&43
Philippines SPICYLICIOUS SPICYLICIOUS 4-2020-518406 23-Nov-20 4-2020-518406 15-Aug-21 Registered 29&43
Philippines JOLLIBEE JOLLIBEE 4-2021-506192 15-Mar-21 4-2021-506192 07-May-21 Registered 9
JOLLIBEEMASCOT
Philippines 4-2021-511283 14-May-21 4-2021-511283 04-Jul-21 Registered 9
DESIGN
HOMEOFTHE
Qatar FAMOUS (wordmark) 117443 26-Sep-17 117443 06-Aug-18 Registered 29
CHICKENJOY
HOMEOFTHE
Qatar FAMOUS (wordmark) 117444 26-Sep-17 117444 09-Jul-18 Registered 43
CHICKENJOY
JOLLIBEE(IN
Qatar 106585 05-Jun-16 106585 23-Jul-18 Registered 42
ARABICSCRIPT)
JOLLIBEE
Qatar CHARACTERAND 57954 08-Jul-09 57954 08-Jul-19 Registered 29
DEVICE
JOLLIBEE
Qatar CHARACTERAND 57955 08-Jul-09 57955 08-Jul-19 Registered 30
DEVICE
JOLLIBEE
Qatar CHARACTERAND 57956 08-Jul-09 57956 08-Jul-19 Registered 42
DEVICE
JOLLIBEELOGO&
Qatar 57951 08-Jul-09 57951 08-Jul-19 Registered 29
DEVICE
JOLLIBEELOGO&
Qatar 57952 08-Jul-09 57952 08-Jul-19 Registered 30
DEVICE
JOLLIBEELOGO&
Qatar 57953 08-Jul-09 57953 08-Jul-19 Registered 42
DEVICE
JOLLIBEEMASCOT
Qatar 80273 14-Mar-13 80273 22-Oct-15 Registered 29
DESIGN
JOLLIBEEMASCOT
Qatar 80274 14-Mar-13 80274 22-Oct-15 Registered 42
DESIGN
JOLLIBEE&BEE
SaudiArabia 122600 01-Oct-07 142809331 13-Jun-17 Registered 43
DEVICE
JOLLIBEE(IN
SaudiArabia 1437020649 16-Jun-16 1437020649 12-Oct-16 Registered 43
ARABICSCRIPT)
SaudiArabia JOLLIBEECHAMP (wordmark) 1436008326 08-Feb-15 1436008326 22-Jun-15 Registered 29
SaudiArabia JOLLIBEECHAMP (wordmark) 1436008327 08-Feb-15 1436008327 22-Jun-15 Registered 30
Page 58
JOLLIBEEMASCOT
SaudiArabia 194606 26-Mar-13 143406471 03-Jul-14 Registered 29
DESIGN
JOLLIBEEMASCOT
SaudiArabia 194607 26-Mar-13 143406472 03-Jul-14 Registered 43
DESIGN
29,
Singapore CHICKENJOY T1205748A 20-Apr-12 T1205748A 20-Apr-22 Registered
43
HOMEOFTHE
(wordmark) 29,
Singapore FAMOUS 40201520749Y 26-Nov-15 40201520749Y 26-Nov-15 Registered
43
CHICKENJOY
29,
Singapore JOLLIBEE T1205747C 20-Apr-12 T1205747C 20-Apr-22 Registered
43
JOLLIBEE
29,30,
Singapore CHARACTERAND T0908261F 24-Jul-09 T0908261F 24-Jul-19 Registered
43
DEVICE
JOLLIBEELOGO 29,30,
Singapore T0908260H 24-Jul-09 T0908260H 24-Jul-19 Registered
ANDDEVICE 43
JOLLIBEEMASCOT
Singapore T1304012D 11-Mar-13 T1304012D 11-Mar-23 Registered 29,43
DESIGN
16,21,25,
Singapore JOLLIBEE (wordmark) 40201919752P 12-Sep-19 40201919752P 07-Jan-21 Registered
28,35
Page 59
16,21,25,
Singapore BeeHeadDevice 40201914754X 12-Sep-19 40201919754X 07-Jan-21 Registered
28,35
JOLLIBEEMASCOT
Singapore 40202129428V 03-Dec-21 40202129428V 21-May-22 Registered 25,28
DESIGN
JOLLIBEE
Singapore YUMBURGER 40202251059N 22-Jun-22 40202251059N 24-Mar-23 Registered 30
wordmark
JOLLIBEEGREAT
BURGERSGREAT
SouthAfrica 9510214 08-Aug-95 95/10214 08-Aug-15 Registered 29
CHICKEN&
DEVICE
JOLLIBEEGREAT
BURGERSGREAT
SouthAfrica 9510215 08-Aug-95 95/10215 08-Aug-15 Registered 42
CHICKEN&
DEVICE
JOLLIBEEMASCOT
SouthAfrica 2020/30930 22-Nov-20 Pending 16
DESIGN
JOLLIBEEMASCOT
SouthAfrica 2020/30931 11-Nov-20 Pending 21
DESIGN
JOLLIBEEMASCOT
SouthAfrica 2020/30932 11-Nov-20 Pending 25
DESIGN
JOLLIBEEMASCOT
SouthAfrica 2020/30933 11-Nov-20 Pending 28
DESIGN
JOLLIBEEMASCOT
SouthAfrica 2020/30934 11-Nov-20 Pending 29
DESIGN
JOLLIBEEMASCOT
SouthAfrica 2020/30935 11-Nov-20 Pending 30
DESIGN
JOLLIBEEMASCOT
SouthAfrica 2020/30936 11-Nov-20 Pending 32
DESIGN
JOLLIBEEMASCOT
SouthAfrica 2020/30937 11-Nov-20 Pending 35
DESIGN
JOLLIBEEMASCOT
SouthAfrica 2020/30938 11-Nov-20 Pending 39
DESIGN
Page 61
JOLLIBEEMASCOT
SouthAfrica 2020/30939 11-Nov-20 Pending 43
DESIGN
29,
Spain BEEHEADDEVICE 3012444 05-Jan-12 3012444 05-Jan-22 Registered
43
29,
Spain CHICKENJOY M3012445 05-Jan-12 3012445 05-Jan-22 Registered
43
HOMEOFTHE
29,
Spain FAMOUS (wordmark) 3684349 27-Sep-17 3684349 27-Sep-17 Registered
43
CHICKENJOY
29,
Spain JOLLIBEE M3012443 05-Jan-12 3012443 05-Jan-22 Registered
43
16,21,25,
Spain BEEHEADDEVICE 4031764 19-Aug-19 4031764 24-Feb-20 Registered
28,35
16,21,25,
Spain JOLLIBEE (wordmark) 4031756 16-Aug-19 4031756 24-Feb-20 Registered
28,35
JOLLIBEEMASCOT
SriLanka 211716 29-Sep-16 211716 29-Sep-16 Registered 29
DESIGN
JOLLIBEEMASCOT
SriLanka 211718 29-Sep-16 211718 28-Aug-20 Registered 43
DESIGN
JOLLIBEEMASCOT
Syria 54981 08-Jul-18 Registered 29,30,42
DESIGN
YUM(INSTYLIZED
Taiwan 1874837 15-Oct-17 Registered 29
FORM)
Taiwan JOLLIBEE (wordmark) 01841173 16-May-17 Registered 29
Taiwan JOLLIBEE (wordmark) 01855925 16-May-17 Registered 43
JOLLIBEEMASCOT
Taiwan 01841175 16-May-17 Registered 29
DESIGN
JOLLIBEEMASCOT
Taiwan 01842300 15-May-17 Registered 43
DESIGN
JOLLIBEEBEE 16,21,25,
Taiwan 108060462 12-Sep-19 108060462 1-Jul-20 Registered
HEADDEVICE 28,36
JOLLIBEEBEE
Taiwan 108064308 01-Oct-19 108064308 01-May-20 Registered 39
HEADDEVICE
JOLLIBEEMASCOT
Thailand 969052 08-Jan-15 171107470 08-Jan-15 Registered 25
DESIGN
JOLLIBEEMASCOT
Thailand 970145 19-Jan-15 171102032 19-Jan-15 Registered 29
DESIGN
JOLLIBEEMASCOT
Thailand 970146 19-Jan-15 171108423 19-Jan-15 Registered 43
DESIGN
16,21,25,
Thailand BEEHEADDEVICE 190137807 02-Oct-19 221117739 2-Oct-19 Registered
28,35
16,21,25,
Thailand JOLLIBEE (wordmark) 190137806 02-Oct-19 211119965 02-Oct-19 Registered
28,35
JOLLYCRISPY
Thailand 230115955 10-May-23 Pending 29,43
CHICKEN
29,
Turkey BEEHEADDEVICE 2014/82416 13-Oct-14 2014/82416 13-Oct-14 Registered
43
UnitedArab
BEEHEADDEVICE 173869 20-May-12 173869 13-Jan-14 Registered 29
Emirates
UnitedArab
BEEHEADDEVICE 173870 20-May-12 173870 13-Jan-14 Registered 43
Emirates
UnitedArab
CHICKENJOY 173871 20-May-12 173871 13-Jan-14 Registered 29
Emirates
UnitedArab
CHICKENJOY 173872 20-May-12 173872 13-Jan-14 Registered 43
Emirates
HOMEOFTHE
UnitedArab
FAMOUS (wordmark) 280804 10-Oct-17 280804 27-Jan-22 Registered 43
Emirates
CHICKENJOY
HOMEOFTHE
UnitedArab
FAMOUS (wordmark) 280803 10-Oct-17 280803 27-Jan-22 Registered 29
Emirates
CHICKENJOY
UnitedArab
JOLLIBEE 173867 20-May-12 173867 13-Jan-14 Registered 29
Emirates
UnitedArab
JOLLIBEE 173868 20-May-12 173868 13-Jan-14 Registered 43
Emirates
UnitedArab JOLLIBEE(IN
254761 5-Jun-16 Pending 43
Emirates ARABICSCRIPT)
JOLLIBEE
UnitedArab
CHARACTER& 126847 10-Mar-09 126847 23-Aug-12 Registered 43
Emirates
DEVICE
JOLLIBEE
UnitedArab
CHARACTER& 126844 10-Mar-09 126844 23-Aug-12 Registered 29
Emirates
DEVICE
JOLLIBEE
UnitedArab
CHARACTER& 126845 10-Mar-09 126845 23-Aug-12 Registered 30
Emirates
DEVICE
JOLLIBEE
UnitedArab
CHARACTER& 126846 10-Mar-09 126846 23-Aug-12 Registered 32
Emirates
DEVICE
UnitedArab JOLLIBEECHICKEN.
394421 20-Mar-23 Pending 43
Emirates BURGER.PIES
JOLLIBEEGREAT
UnitedArab BURGERSGREAT
16343 27-May-96 15560 27-May-16 Registered 42
Emirates CHICKEN&
DEVICE
JOLLIBEEGREAT
UnitedArab BURGERSGREAT
16344 27-May-96 15559 27-May-16 Registered 29
Emirates CHICKEN&
DEVICE
UnitedArab JOLLIBEELOGO&
126840 10-Mar-09 126840 10-Mar-19 Registered 29
Emirates DEVICE
UnitedArab JOLLIBEELOGO&
126842 10-Mar-09 126842 10-Mar-19 Registered 32
Emirates DEVICE
UnitedArab JOLLIBEELOGO&
126841 10-Mar-09 126841 10-Mar-19 Registered 30
Emirates DEVICE
Page 65
UnitedArab JOLLIBEELOGO&
126843 10-Mar-09 126843 10-Mar-19 Registered 43
Emirates DEVICE
UnitedArab JOLLIBEEMASCOT
16345 27-May-96 14694 27-Mar-16 Registered 42
Emirates DEVICE
UnitedArab
YUM 189043 26-Mar-13 189043 26-Mar-23 Registered 29
Emirates
UnitedArab
BEEHEADDEVICE 317972 30-Sep-19 317972 26-Jan-20 Registered 16
Emirates
UnitedArab
BEEHEADDEVICE 317973 30-Sep-19 317973 26-Jan-20 Registered 21
Emirates
UnitedArab
BEEHEADDEVICE 317974 30-Sep-19 317974 26-Jan-20 Registered 25
Emirates
UnitedArab
BEEHEADDEVICE 317975 30-Sep-19 317975 26-Jan-20 Registered 28
Emirates
UnitedArab
BEEHEADDEVICE 317976 30-Sep-19 317976 26-Jan-20 Registered 35
Emirates
UnitedArab
JOLLIBEE (wordmark) 317967 30-Sep-19 317967 26-Jan-20 Registered 16
Emirates
UnitedArab
JOLLIBEE (wordmark) 317968 30-Sep-19 317968 26-Jan-20 Registered 21
Emirates
UnitedArab
JOLLIBEE (wordmark) 317969 30-Sep-19 317969 26-Jan-20 Registered 25
Emirates
UnitedArab
JOLLIBEE (wordmark) 317970 30-Sep-19 317970 26-Jan-20 Registered 28
Emirates
UnitedArab
JOLLIBEE (wordmark) 317971 30-Sep-19 317971 26-Jan-20 Registered 35
Emirates
UnitedArab
BEEHEADDEVICE 339687 19-Nov-20 339687 29-Mar-21 Registered 30
Emirates
UnitedArab
BEEHEADDEVICE 339688 19-Nov-20 339688 29-Mar-21 Registered 32
Emirates
UnitedArab
BEEHEADDEVICE 339689 19-Nov-20 339689 29-Mar-21 Registered 39
Emirates
UnitedArab
CRISPYLICIOUS (wordmark) 339673 19-Nov-20 339673 29-Mar-21 Registered 29
Emirates
UnitedArab
CRISPYLICIOUS (wordmark) 339674 19-Nov-20 339674 29-Mar-21 Registered 43
Emirates
UnitedArab
JOLLIBEE (wordmark) 339683 19-Nov-20 339683 29-Mar-21 Registered 30
Emirates
UnitedArab
JOLLIBEE (wordmark) 339684 19-Nov-20 339684 29-Mar-21 Registered 32
Emirates
Page 66
UnitedArab
BEEHEADDEVICE 351259 18-May-21 Pending 9
Emirates
UnitedArab
JOLLIBEE (wordmark) 351258 18-May-21 Pending 9
Emirates
United 29,
BEEHEADDEVICE 3086509 17-Dec-14 3086509 20-Mar-15 Registered
Kingdom 43
United
CHAMP (wordmark) 3086550 17-Dec-14 3086550 20-Mar-15 Registered 30
Kingdom
United 29,
CHICKENJOY 3086685 18-Dec-14 3086685 27-Mar-15 Registered
Kingdom 43
United EVERYDAY
(wordmark) 3086549 17-Dec-14 3086549 27-Mar-15 Registered 35
Kingdom DELICIOUS
HOMEOFTHE
United 29,
FAMOUS (wordmark) 3138210 27-Nov-15 UK00003138210 26-Feb-16 Registered
Kingdom 43
CHICKENJOY
JOLLIBEE
United
(STYLISED)& 2572105 14-Feb-11 2572105 14-Feb-21 Registered 43
Kingdom
DEVICE
United 29,
JOLLIBEE 3086498 17-Dec-14 3086498 20-Mar-15 Registered
Kingdom 43
United
YUM 3086691 18-Dec-14 3086691 27-Mar-15 Registered 30
Kingdom
United 21,29,30,
BEEHEADDEVICE 3502498 19-Jun-20 3502498 9-Oct-20 Registered
Kingdom 32,39,43
United 21,29,30,
JOLLIBEE (wordmark) 3502496 19-Jun-20 3502496 9-Oct-20 Registered
Kingdom 32,39,43
United 9,16.25,
JOLLIBEE (wordmark) 3357125 29-Nov-18 3357125 12-Mar-21 Registered
Kingdom 28,35
United
Jollybee Jollybee UK00910610632 02Feb-12 UK00910610632 24-May-12 Registered 25
Kingdom
UnitedStates
AMAZINGALOHA (wordmark) 78/773483 14-Dec-05 3399726 18-Mar-18 Registered 30
ofAmerica
UnitedStates
BEEHAPPY (wordmark) 76/355920 07-Jan-02 2,830,503 06-Apr-14 Registered 43
ofAmerica
UnitedStates 29,
BEEHEADDEVICE 85/513900 11-Jan-12 4426087 29-Oct-23 Registered
ofAmerica 43
UnitedStates
CHICKENJOY 85/524814 25-Jan-12 4874637 22-Dec-15 Registered 43
ofAmerica
Page 67
UnitedStates
JOLLIBEE&DEVICE 78/546427 12-Jan-05 3152057 3-Oct-16 Registered 43
ofAmerica
UnitedStates JOLLIBEEBURGER
(wordmark) 78/773477 14-Dec-05 3562559 13-Jan-19 Registered 29
ofAmerica STEAK
UnitedStates
JOLLIBEE 85524886 25-Jan-12 4426109 29-Oct-23 Registered 29
ofAmerica
UnitedStates
JOLLYCRISPYFRIES (wordmark) 87030021 09-May-16 5891569 22-Oct-19 Registered 29
ofAmerica
UnitedStates
JOLLYSPAGHETTI (wordmark) 78/773476 14-Dec-05 3374063 22-Jan-18 Registered 30
ofAmerica
UnitedStates
PALABOKFIESTA (wordmark) 78/773470 14-Dec-05 3393101 04-Mar-18 Registered 29
ofAmerica
UnitedStates
YUM 78-773,415 14-Dec-05 3,363,459 01-Jan-18 Registered 30
ofAmerica
UnitedStates
YUMBURGER (wordmark) 78/773383 14-Dec-05 3349864 04-Dec-17 Registered 30
ofAmerica
UnitedStates 16,21,25,
BEEHEADDEVICE 88632538 26-Sep-19 6351281 18-May-21 Registered
ofAmerica 28,35
UnitedStates 16,21,25,
JOLLIBEE (wordmark) 88632527 26-Sep-19 6351280 18-May-21 Registered
ofAmerica 28,35
UnitedStates
JOYSERVEDDAILY (wordmark) 90406641 23-Dec-20 6748184 31-May-22 Registered 43
ofAmerica
UnitedStates JOLLIBEE
90866840 05-Aug-21 6848458 13-Sep-22 Registered 30
ofAmerica CHICKENWICH
29,
Vietnam BEEDEVICE 4-2013-04474 12-Mar-13 225456 03-Jun-14 Registered
43
29,
Vietnam BEEHEADDEVICE 4-2012-08039 24-Apr-12 210299 13-Aug-13 Registered
43
29,
Vietnam CHICKENJOY 4-2012-08038 24-Apr-12 210298 24-Apr-22 Registered
43
HOMEOFTHE
29,
Vietnam FAMOUS (wordmark) 4-2017-31269 27-Sep-17 396138 18-Aug-21 Registered
43
CHICKENJOY
29,
Vietnam JOLLIBEE 4-2012-08037 24-Apr-12 210739 24-Apr-22 Registered
43
29,
Vietnam JOLLIBEEMASCOT 4-2008-25172 25-Nov-08 153633 25-Nov-18 Registered
43
Page 68
JOLLIBEEMASCOT
Vietnam 4-1995-22974 18-May-95 19997 18-May-15 Registered 29
DEVICE
JOLLIBEESTACKED 29,
Vietnam 4-2008-25170 25-Nov-08 153631 25-Nov-18 Registered
LOGO 43
29,
Vietnam PEEKINGBEE 4-2008-25171 25-Nov-08 153632 25-Nov-18 Registered
43
(CHICKENJOYin
Vietnam GÀGIÒNVUIVẺ 4-2018-30910 10-Sept-18 373534 17-Dec-20 Registered 29,43
Vietnamese)
16,21,25,
Vietnam BEEHEADDEVICE 4-2019-31693 19-Aug-19 397193 07-Sept-21 Registered
28,35
16,21,25,
Vietnam JOLLIBEE (wordmark) 4-2019-31692 19-Aug-19 397192 07-Sep-21 Registered
28,35
2. PROPERTIES
The Group’s head office is located at the 10th Floor, Jollibee Plaza Building, 10 F. Ortigas Jr.
Avenue, Ortigas Center, Pasig City. Each floor occupied by the Group has different lease terms
and the average lease term is seven years. It also leases additional office spaces in certain
buildings, including the Jollibee Center.
As of December 31, 2023, the Group leased the land or the building for Group-owned stores,
the term of which typically ranges between 3 to 20 years. The rates and terms of the lease vary
for each Group- owned store. Franchisees may own the land on which a store is located or enter
into independent leasing arrangements. The Group typically enters into independent leasing
arrangements for brands where the Group is a franchisee. The Group intends to lease additional
lots and/or buildings from third parties for the expansion of its network.
Under the Group’s lease agreements for its stores, the Group is obligated to pay all costs and
expenses with respect to the property leased by the Group from a third party including all taxes
and assessments, repairs and maintenance as well as insurance. As of December 31, 2023, there
were 1,093 properties leased for Group-owned stores.
All of the properties owned by the Company are free of liens and encumbrances.
In terms of store floor area, the largest company-owned Jollibee stores are provided below:
*Remarks
Figures for JB Iba Highway cover period of Rental Effectivity beginning June 1,
2023
3. LEGAL PROCEEDINGS
For purposes of this discussion, a legal proceeding is deemed “material” if the claim for damages
involved, exclusive of interest and costs, exceeds 10% of the Company’s current assets. As of
December 31, 2023, there are no pending material legal proceedings to which the Company is a
party. The Company has not been the subject of any bankruptcy petition, insolvency,
receivership, or similar proceedings.
The Company’s Common and Preferred Shares are traded at the Philippine Stock
Exchange.
The table below set forth the market prices of the Common Shares and Preferred
Shares in 2022 and 2023.
Common Shares
2023 2022
High Low High Low
1st Quarter 252.00 215.00 252.00 205.00
2nd Quarter 241.80 212.20 231.60 192.00
3rd Quarter 261.00 225.20 250.00 200.80
4th Quarter 251.60 206.00 256.00 225.22
Source: The Philippine Stock Exchange
2023 2022
High Low High Low
1st Quarter 963.50 920.00 1,010.00 985.00
2nd Quarter 968.00 918.50 1,020.00 952.00
3rd Quarter 950.00 920.50 985.00 921.00
4th Quarter 960.00 925.00 960.00 910.00
2023 2022
High Low High Low
1 Quarter
st
950.00 910.00 1,015.00 1,000.00
2nd Quarter 925.00 899.00 1,000.00 931.00
3rd Quarter 925.00 901.00 979.00 900.00
4th Quarter 945.00 901.00 965.00 895.00
The price information of preferred shares Series A and Series B as of the close of
the latest practicable trading date, January 31, 2024, are Php960.00 and Php925.00,
respectively.
Page 72
(2) Holders
Common Shares
There are 2,922 registered holders of common shares as of December 31, 2023.
The following table sets forth the Top 20 shareholders of the Company’s Common
Shares as of December 31, 2023.
(3) Dividends
Common Shares
The Company declares dividends on common shares on a semi-annual basis and upon approval by
the Board of Directors. The Jollibee Group has a cash dividend policy of declaring one-third of the
Jollibee Group’s net income for the year as cash dividends. It uses best estimate of its net income
as basis for declaring cash dividends.
The actual cash dividends per common share declared as a percentage of the Earnings Per Share is
28.2%, 35.9%, and 31.5% in 2023, 2022 and 2021, respectively.
Below are the cash dividend declarations of the Company on Common Shares for the years 2023,
2022 and 2021:
Preferred Shares
As and if cash dividends are declared by the Board of Directors on the Company’s preferred shares,
cash dividends shall be as follows:
Series A Preferred Shares dividends are at the fixed rate of 3.2821% per annum; and
Series B Preferred Shares dividends are at the fixed rate of 4.2405% per annum
Subject to the certain limitations, cash dividends on the Series A Preferred Shares and the Series B
Preferred Shares will be payable quarterly in arrears on January 14, April 14, July 14, and October
14 of each year
Below are the cash dividend declarations of the Company on preferred shares for the years 2023
and 2022:
The notes offered or sold by JWPL, a subsidiary of the Company, have not been registered with
the Philippine Securities and Exchange Commission under the Securities Regulation Code
of the Philippines (the SRC) because the offer involved an entity outside of the Philippines and
the shares were offered outside of the Philippines.
On January 10, 2017 and December 17, 2002, the SEC approved the exemption requested by the
Jollibee Group on the registration requirements of 31,500,000 and 101,500,000 options,
respectively, underlying the Parent Company’s common shares to be issued pursuant to the Jollibee
Group’s Senior Management Stock Option and Incentive Plan (the Plan). The Plan covers selected
key members of management of the Jollibee Group and designated affiliated entities.
On December 23, 2022, the Philippine SEC approved the registration of up to 136,000,000 common
shares with a par value of =
P1.00 per share to be issued at P
=167.20 to P
=216.80 per share to eligible
participants of the Company pursuant to the Plan.
The Plan is divided into two programs, namely, the Management Stock Option Program (MSOP)
and the Executive Long-term Incentive Program (ELTIP). The MSOP provides a yearly stock
option grant program based on company and individual performance while the ELTIP provides
stock ownership as an incentive to reinforce entrepreneurial and long-term ownership behavior of
executive participants.
MSOP. The MSOP is a yearly stock option grant program open to members of the senior
management committee of the Jollibee Group and members of the management committee, key
talents and designated consultants of some of the business units.
Each MSOP cycle refers to the period commencing on the MSOP grant date and ending on the last
day of the MSOP exercise period. Vesting is conditional on the employment of the employee-
participants in the Jollibee Group within the vesting period. The options will vest at the rate of
one-third of the total options granted on each anniversary of the MSOP grant date until the third
anniversary.
The exercise price of the stock options is determined by the Jollibee Group with reference to the
prevailing market prices over the three months immediately preceding the date of grant for the 1st
to the 7th MSOP cycle. Starting with the 8th MSOP cycle, the exercise price of the option is
determined by the Jollibee Group with reference to the market closing price at date of grant.
The options will vest at the rate of one-third of the total options granted from the start of the grant
date on each anniversary date which will start after a year from the grant date. For instance, under
the 1st MSOP cycle, the Compensation Committee of the Jollibee Group granted 2,385,000 options
to eligible participants on July 1, 2004. One-third of the options granted, or 795,000 options, vested
and may be exercised starting July 1, 2005. The exercise period for the 1st MSOP cycle was until
June 30, 2012. From July 1, 2005 to October 25, 2023, the Compensation Committee granted series
of MSOP grants under the 2nd to 20th MSOP cycle to eligible participants. Under the most recent
grant on October 25, 2023, the 20th MSOP cycle, the Compensation Committee granted 5,548,602
options. These options vest similar to the 1st MSOP cycle.
The options under MSOP expire eight years after grant date. The 1st, 2nd, 3rd, 4th, 5th, 6th, 7th,
8th, 9th, 10th,11th and 12th MSOP cycles expired in 2012, 2013, 2014, 2015, 2016, 2017, 2018,
2019, 2020, 2021, 2022, and 2023, respectively.
The movements in the number of stock options outstanding under MSOP and related weighted
average exercise prices (WAEP) in 2023, 2022 and 2021 follow:
Page 75
The weighted average share price of the Parent Company’s common shares is P =234.57, P
=228.53,
and P=200.38 in 2023, 2022 and 2021, respectively. The weighted average remaining contractual
life for the stock options outstanding is 5.16, 5.14 years and 4.73 years as at December 31, 2023,
2022 and 2021, respectively.
The weighted average fair value of stock options granted in 2023, 2022 and 2021 is P =77.52, P
=64.50
and P
=48.71, respectively. The fair value of share options as at the date of grant is estimated using
the Black-Scholes Option Pricing Model, taking into account, the terms and conditions upon which
the options were granted. The option style used for this plan is the American style because the
option plan allows exercise before the expiry date.
The inputs in the valuation of the options granted on the dates of grant for each MSOP cycle are
shown below:
Risk-free Expected Stock Price
MSOP Dividend Expected Interest Life of on Grant Exercise
Cycle Year of Grant Yield Volatility Rate the Option Date Price
12th 2015 2.00% 18.94% 2.98% 3-4 years =180.00
P =180.00
P
13th 2016 2.00% 17.76% 2.63% 3-4 years 236.00 236.00
14th 2017 2.00% 16.70% 3.92% 3-4 years 206.20 206.20
15th 2018 2.00% 28.98% 4.95% 3-4 years 245.00 245.00
16th 2019 2.00% 27.65% 4.18% 3-4 years 219.00 219.00
17th 2020 2.00% 35.17% 2.40% 3-4 years 138.00 138.00
18th 2021 1.70% 36.19% 2.29% 3-4 years 189.60 189.60
19th 2022 1.70% 37.18% 4.92% 3-4 years 218.00 218.00
20th 2023 1.56% 34.42% 6.63% 5 years 214.00 214.00
The expected life of the stock options is based on historical data and current expectations and
is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects
the assumption that the historical volatility over a period similar to the life of the options is
indicative of future trends, which may also not necessarily be the actual outcome.
ELTIP. The ELTIP entitlement is given to members of the senior management committee and
designated consultants of the Jollibee Group.
Each ELTIP cycle refers to the period commencing on the ELTIP entitlement date and ending
on the last day of the ELTIP exercise year. Actual grant and vesting are conditional upon
achievement of the Jollibee Group’s medium to long-term goals and individual targets in a given
period, and the employment of the employee-participants in the Jollibee Group within the
vesting period. If the goals are achieved, the options will be granted. For the 3rd ELTIP cycle,
a percentage of the options to be granted are based on the percentage of growth in annual
earnings per share such that 100%, 50% or 25% of the options granted when percentage of
growth in annual earnings per share are 12% and above, 10% to less than 12% or 8% to less
than 10%, respectively. For the 4th ELTIP cycle, the percentage of the options to be granted
and the targeted percentage of growth in annual earnings per share have been further revised
such that 150%, 100% or 50% of the options granted when percentage of growth in annual
earnings per share are 15% and above, 12% to less than 15% or 10% to less than 12%,
respectively.
Page 76
The exercise price of the stock options under ELTIP is determined by the Jollibee Group with
reference to the prevailing market prices over the three months immediately preceding the date
of entitlement for the first and second ELTIP cycles. Starting with the 3rd ELTIP cycle, the
exercise price of the option is determined by the Jollibee Group with reference to the closing
market price as at the date of entitlement.
The options will vest at the rate of one-third of the total options granted on each anniversary
date which will start after the goals are achieved. For instance, on July 1, 2004, the
Compensation Committee gave an entitlement of 22,750,000 options under the 1st ELTIP cycle
to eligible participants. One-third of the options granted, or 7,583,333 options, vested and were
exercised starting July 1, 2007 until June 30, 2012. On July 1, 2008, October 19, 2012, August
25, 2015, January 3, 2018 and May 19, 2021, entitlement to 20,399,999, 24,350,000,
11,470,000, 9,290,000 and 15,629,998 options were given to eligible participants under the
2nd, 3rd, 4th, 5th and 6th ELTIP cycles, respectively. The 1st, 2nd, 3rd and 4th ELTIP cycles
expired on June 30, 2012, April 30, 2017, April 30, 2020 and April 30, 2023, respectively. The
5th ELTIP cycle was not granted to ELTIP participants as the Jollibee Group did not achieve the
minimum hurdle rate of 10% of annual growth of the EPS due to the impact of the COVID-19
pandemic to Jollibee Group’s business performance in 2020.
The movements in the number of stock options outstanding for the 4th ELTIP cycle and related
WAEP in 2023, 2022 and 2021 follow:
The weighted average remaining contractual life for the stock options outstanding is nil, 0.33
year, and 1.33 years as at December 31, 2023, 2022 and 2021, respectively.
The inputs to the model used for the options granted on the date of grant for the 4th ELTIP cycle
are shown below:
Expected Stock Price
Year Dividend Expected Risk-free Life of on Grant Exercise
ELTIP Cycle of Grant Yield Volatility Interest Rate the Option Date Price
4th 2015 2.00% 18.94% 2.98% 3-4 years =180.00
P =180.00
P
The expected life of the stock options is based on historical data and current expectations and
is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects
the assumption that the historical volatility over a period similar to the life of the options is
indicative of future trends, which may also not necessarily be the actual outcome.
The cost of the stock options expense charged to operations for both MSOP and ELTIP in the
“General and administrative expenses” account amounted to =P353.9 million and = P185.0 million,
and P
=155.5 million in 2023, 2022 and 2021, respectively (see Notes 19, 22 and 27).
Correspondingly, a credit was made to additional paid-in-capital (see Note 19).
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The audit and audit-related fees cover professional services related to the performance of the
audit or review of the Company’s annual financial statements by the external auditor. The Audit
Committee reviews and approves the audit and non-audit services rendered by the Company’s
external auditors to ensure that the Company does not engage the external auditors for certain
non-audit services expressly prohibited by regulations of the Securities and Exchange
Commission to be performed by an external auditor for its audit clients. The proposal of external
auditors for professional services was submitted to, and reviewed by, the Audit Committee
which, in turn, is endorsed to the Board of Directors for approval.
For the 2023 audit, the aggregate fee for professional services rendered by the external
auditors is approximately Php100 Million. For the 2022 audit, the aggregate fee for
professional services rendered by the external auditors for the Jollibee Group was
approximately Php103 Million.
Tax Fees: In 2023 and 2022, fees for professional services rendered by the external auditors
for tax accounting, compliance, advise and other tax services amounted to PHP29.5 million
and PHP31.8 million, respectively.
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The following Management Discussion and Analysis should be read in conjunction with the
submitted Audited Consolidated Financial Statements as at December 31, 2023 and December 31,
2022 and for the years ended December 31, 2022 and 2021.
The accounting policies adopted are consistent with those of the previous financial year, except for
the adoption of new accounting pronouncements starting January 1, 2023. Adoption of these
pronouncements did not have any significant impact on the consolidated statement of financial
position and performance unless otherwise indicated.
Please refer to Note 2 of the attached Audited Consolidated Financial Statements for the Basis of
Preparation, Statement of Compliance, Changes in Accounting Policies and Basis of Consolidation.
Results of Operations
For the Year Ended December 31, 2023 vs. December 31, 2022
(All Amounts are in Million Pesos)
SWS is the JFC Group’s measure for all sales to consumers, both from company-owned and
franchised stores. Consolidated SWS increased by P48,502.0 million or 16.3% to P345,324.4
million for the year 2023 compared to P296,822.4 million for the year 2022.
The tables below show a breakdown of the growth of the Group’s SWS for the following categories
for the years ended December 31, 2023 and 2022:
Newly Acquired Impact of
FY 2023 Same Store Sales New Store Business FOREX on
(Unaudited) SWS Growth Growth Contribution Contribution SWS
Percent
Philippines 17.6 13.9 3.8 - -
People's Republic of China 21.9 12.4 12.4 - (2.9)
North America 11.6 4.4 5.1 - 2.1
Europe, Middle East, Asia (EMEA) 16.0 7.6 6.4 - 2.0
Coffee Bean & Tea Leaf 11.9 1.7 8.1 - 2.1
SuperFoods 6.4 (4.3) 10.8 - (0.2)
Milksha 29.6 14.8 17.2 - (2.4)
International 14.4 5.3 8.3 - 0.8
Total worldwide 16.3 10.6 5.4 - 0.3
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Consolidated revenues increased by P32,205.1 million or 15.2% to P244,107.3 million for the year
2023 compared to consolidated revenues for the year 2022.
The increase in SWS and revenues was driven by the continued strong performance of the
Philippine business which registered an increase of 17.6% driven by a 13.9% growth in same store
sales (SSS) from a volume growth of 8.2% and a 5.2% increase in average check.
SSS of the international business grew by 5.3%, with China increasing by 12.4%, Milksha by
14.8%, North America by 4.4%, Europe/Middle East and other parts of Asia (EMEAA) by 7.6%,
The Coffee Bean & Tea Leaf (CBTL) by 1.7%. SuperFoods’ SSS declined by 4.3% primarily due to
weak macros in Vietnam and increased competition in the coffee space.
As at December 31, 2023, the JFC Group had 6,885 company-owned and franchised stores globally,
growing 6.3% year-over-year.
The JFC Group opened 658 new stores in 2023: 123 in the Philippines and 535 overseas (101 in
China, 19 in NA and 40 in EMEAA. The JFC Group’s coffee and tea brands, SuperFoods, CBTL,
and Milksha continued to drive the growth in store network with the opening of 192, 138 and 45
stores, respectively. A total of 225 stores were permanently closed in 2023: 69 in the Philippines
and 156 abroad. Note: Please refer to pages 11 for details of store network, SWS and SSS growth
by brand.
Direct Costs
Consolidated direct costs for the year 2023 increased to P198,806.7 million, which is P23,860.8
million or 13.6% higher than the consolidated direct costs for the year 2022, primarily as a result
of an increase in: (i) cost of inventories and (ii) store and manufacturing costs arising from the
JFC Group’s organic expansion.
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The following table summarizes the breakdown of the Jollibee Group’s direct costs for the years
ended December 31, 2023 and 2022 and the percentage of each component and the consolidated
cost of sales to consolidated revenues:
Years Ended December 31 Change Pct to Rev
2023 2022
(Audited) (Audited) Amount Pct 2023 2022
Cost of Sales
Cost of inventories 113,996.9 99,273.2 14,723.8 14.8% 46.7% 46.8%
Personnel costs:
Salaries, wages and other employee benefits 25,776.1 23,278.2 2,497.9 10.7% 10.6% 11.0%
Pension expense 201.7 213.1 (11.4) -5.3% 0.1% 0.1%
Depreciation and amortization 16,236.9 14,908.0 1,328.9 8.9% 6.7% 7.0%
Contracted services 9,796.3 8,418.0 1,378.3 16.4% 4.0% 4.0%
Electricity and other utilities 6,254.8 5,468.6 786.2 14.4% 2.6% 2.6%
Rent 5,618.6 4,559.7 1,058.8 23.2% 2.3% 2.2%
Supplies 3,406.9 3,364.4 42.4 1.3% 1.4% 1.6%
Repairs and maintenance 2,876.5 2,576.4 300.1 11.6% 1.2% 1.2%
Security and janitorial 1,285.6 1,097.3 188.3 17.2% 0.5% 0.5%
Communication 408.3 371.1 37.2 10.0% 0.2% 0.2%
Professional fees 176.8 122.0 54.7 44.8% 0.1% 0.1%
Representation and entertainment 78.2 90.2 (12.0) -13.3% 0.0% 0.0%
Delivery costs, insurance and others 8,632.7 7,806.1 826.5 10.6% 3.5% 3.7%
194,746.3 171,546.3 23,200.0 13.5% 79.8% 81.0%
Cost of Services
Advertising expense 4,060.4 3,399.6 660.8 19.4% 1.7% 1.6%
198,806.7 174,945.9 23,860.8 13.6% 81.4% 82.6%
Consolidated cost of inventories increased at a slower rate than revenues due to rising inflation
and higher freight costs. As a percentage of revenues, it improved by 10 basis points (bps) to
46.7% driven by volume growth with a little lift from price adjustments implemented in 2022 and
2023 to support its profit margins.
Consolidated store and manufacturing costs increased by 13.5% and improved YoY as a percentage
of revenues. The increase was primarily driven by owned stores opened during the period. The JFC
Group opened 345 owned stores and closed 96 owned stores globally in 2023 compared to 2022. As
a percentage of revenues, consolidated store and manufacturing costs decreased YoY by 120 bps
primarily due to an improvement in sales of the JFC Group’s businesses, both domestic and
international, and supply chain efficiency savings.
The following discussion details the components of store and manufacturing costs, for the year
ended December 31, 2023, compared to December 31, 2022:
For the year 2023, all expense items except representation and entertainment increased YoY driven
by the JFC Group’s continued store expansion. Professional fees increased too, mainly due to the
resumption of store and commissary projects after the Covid-related restrictions in previous years.
Delivery costs, insurance and others likewise increased due to higher delivery costs arising from the
increased sales contribution of the delivery channel.
Representation and entertainment decreased in the first nine months due to lower spending of the
foreign subsidiaries this year compared to last year.
Gross Profit
As a result of the foregoing, gross profit increased by P8,344.3 million or 22.6% from P36,956.3
million for the year 2022 to P45,300.6 million for the year 2023. Gross profit margin improved
from 17.4% in 2022 to 18.6% in 2023.
Page 81
The table below provides a breakdown of the gross profit margin for the Philippine and International
businesses for the years ended December 31, 2023 and 2022:
The improvement in the gross profit margin was driven by the Philippine business primarily due to
strong topline growth and effective cost management in supply chain, commissaries and stores.
Expenses
Consolidated expenses increased by P3,871.7 million or 14.3% from P27,015.0 million for the year
2022 to P30,886.7 million for the year 2023, primarily driven by an increase in labor costs as the
JFC Group continues to invest in its organization, particularly for its international business.
The following table summarizes the breakdown of the JFC Group’s expenses for the years ended
December 31, 2023 and 2022 and the percentage of each expense item to consolidated revenues:
Personnel costs:
Salaries, wages and other employee benefits 13,111.6 11,517.3 1,594.3 13.8% 5.4% 5.4%
Stock options expense 353.9 185.0 168.8 91.3% 0.1% 0.1%
Pension expense 244.2 254.5 (10.3) -4.0% 0.1% 0.1%
Taxes and licenses 2,827.1 2,075.6 751.5 36.2% 1.2% 1.0%
Professional fees 1,467.5 1,377.2 90.3 6.6% 0.6% 0.6%
Contracted services 1,174.1 915.6 258.5 28.2% 0.5% 0.4%
Depreciation and amortization 716.9 690.6 26.3 3.8% 0.3% 0.3%
Transportation and travel 633.3 492.7 140.6 28.5% 0.3% 0.2%
Impairment in value of:
Receivables 278.8 415.4 (136.6) -32.9% 0.1% 0.2%
Inventories 177.9 274.3 (96.4) -35.1% 0.1% 0.1%
Property, plant & equipment 160.4 107.9 52.5 -48.6% 0.1% 0.1%
Other current assets 8.1 121.5 (113.4) 93.4% 0.0% 0.1%
Trademark - 463.1 (463.1) 100.0% 0.0% 0.2%
Rent 562.1 498.4 63.7 12.8% 0.2% 0.2%
Membership and subscriptions 540.0 505.4 34.6 6.8% 0.2% 0.2%
Repairs and maintenance 484.4 491.2 (6.7) -1.4% 0.2% 0.2%
Loss on retirements and disposals of property,
plant and equipment, investment properties and tangibles 400.9 363.1 37.7 10.4% 0.2% 0.2%
Communication 177.3 274.0 (96.7) -35.3% 0.1% 0.1%
Reversals of provision for impairment on:
Right-of-use assets (130.8) (87.0) (43.9) 100.0% -0.1% 0.0%
Property, plant & equipment (49.8) (262.3) 212.5 81.0% 0.0% -0.1%
Inventories (44.7) (49.3) 4.6 -9.3% 0.0% 0.0%
Receivables (7.8) (4.1) (3.7) 88.6% 0.0% 0.0%
Insurance 202.7 170.8 31.9 18.7% 0.1% 0.1%
Supplies 167.3 149.0 18.4 12.3% 0.1% 0.1%
Corporate events 155.3 88.8 66.5 74.9% 0.1% 0.0%
Donations 148.9 97.9 50.9 52.0% 0.1% 0.0%
Training 83.5 94.7 (11.1) -11.8% 0.0% 0.0%
Representation and entertainment 68.1 54.6 13.5 24.7% 0.0% 0.0%
Electricity and other utilities 56.0 47.3 8.7 18.3% 0.0% 0.0%
Association dues 52.5 37.0 15.5 41.8% 0.0% 0.0%
Security and janitorial 18.4 9.0 9.4 103.4% 0.0% 0.0%
Research and development and others 2,046.0 1,536.7 509.3 33.1% 0.8% 0.7%
Total General and Administrative Expenses 26,084.1 22,905.9 3,178.2 13.9% 10.7% 10.8%
Advertising and promotions 4,802.6 4,109.1 693.5 16.9% 2.0% 1.9%
30,886.7 27,015.0 3,871.7 14.3% 12.7% 12.7%
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The following discussion details the components of the JFC Group’s expenses for the year ended
December 31, 2023 compared to December 31, 2022:
Personnel costs increased, mainly due to: (1) headcount increase; and (2) higher performance-related
increases in basic pay, employee promotions, bonuses and upgrades in employee benefits.
Taxes and licenses increased due to higher business-related taxes and license fees, both domestic and
foreign businesses resulting from increase in revenues.
Professional fees increased mainly due to higher fees relating to talent search and acquisition, market
research, and other consulting and legal fees.
Contracted services increased driven by the JFC Group’s Business Technology projects.
Depreciation and amortization increased mainly due to the Group’s fixed asset base resulting from
the growth of the Group’s businesses.
Transportation and travel expenses increased, primarily due to resumption of business travels arising
from the easing of restrictions various countries where JFC operates.
The JFC Group recognized provisions for impairment of value of receivables, inventories, property,
plant and equipment and other current assets totaling to P625.2 million, following certain
assessments performed by the JFC Group, In addition, the JFC Group recognized a reversal of
P233.1 million on previously recognized provisions for impairment on right-of-use assets, property,
plant and equipment, inventories and receivables, in 2022 following certain assessments performed
by the JFC Group. See Note 22 of the accompanying Audited Consolidated Financial Statements for
details.
Rent increased due to additional office spaces for some foreign subsidiaries in 2023.
Membership and subscription expenses increased primarily due to an increase in license and
subscription fees.
The JFC Group incurred loss on retirements and disposal of property, plant and equipment
amounting to P400.9 million resulting from a change in store ownership, store closures and fixed
asset disposals.
Consolidated insurance expense increased due to additional coverage resulting to a higher annual
premium for the Philippine business. For the international operations, the increase was significantly
due to insurance renewals for property, auto, general liability, etc. for a subsidiary of the Parent
Company.
Consolidated supplies increased due to quarterly update of menu boards and implementation of
return to office for the Parent and most of its subsidiaries.
Corporate events increased due to the resumption of various businesses’ events such as National
Conventions particularly in the Philippines and North America.
Donations increased mainly due to higher consolidate income in 2023 compared in 2022 which is
the basis for donations made to the Jollibee Group Foundation (JGF).
Training expenses decreased on account of a higher base due to a series of one-off conversion costs
to online modules.
Page 83
Representation and entertainment expenses increased driven by the international business due to
increased activities related to store expansion.
Electricity and water increased primarily due to higher consumption as office-based employees in
the Philippines and in some countries have started to work onsite two days a week.
Association dues increased driven by monthly subscription for recruitment advertising platforms of
the Parent Company’s foreign subsidiaries.
Security and janitorial expenses increased due to the partnership of JFC Group and Republic Cement
and Building Materials, Inc. (“Republic Cement”) aimed at recovering and diverting post-consumer
packaging wastes through co-processing.
Research and development and others increased due to higher research and development expenses of
the JFC Group.
The increase in advertising and promotions was primarily due to product launches and other
marketing campaigns of the Philippine and international business and timing factor due to delayed
billings by advertising agencies.
Years Ended December 31 Change Pct to Rev
2023 2022
(Audited) (Audited) Amount Pct 2023 2022
Advertising and promotion 4,802.6 4,109.1 693.6 16.9% 2.0% 1.9%
Operating Income
As a result of the foregoing, operating income increased by P4,472.6 million or 45.0% from an
operating income of P9,941.4 million for the year 2022 to P14,414.0 million for the year 2023.
Interest expense increased mainly due to increased interest expense from bank loans and debt
securities and higher interest expense on PFRS 16–Leases.
Equity in net earnings of joint ventures and an associate for 2023 pertains primarily to the equity in
net earnings of Titan Dining L.P., C-Joy Poultry Meats Productions, Inc, Golden Bee (Jollibee
UAE), Entrek (Jollibee Brunei), CentralHub and Yoshinoya, offset by the equity in net losses of
Tortas Frontera, Panda Express, and Beeworks Food (Jollibee West Malaysia). See Note 11 to the
accompanying Audited Consolidated Financial Statements for details.
Page 84
The decrease in consolidated other income - net was primarily on account of a higher base driven by
gains from land conveyance and disposals in the previous year P4,896.6 million. The significantly
lower write-off of liabilities compared to the same period last year also contributed to the decline in
other income.
Provision for income tax for the year increased due mainly to higher taxable income of Parent and
Philippine-based subsidiaries and final tax on royalty income.
Net Income
As a result of the foregoing, net income increased by P1,647.0 million or 22.4%, from P7,338.5
million for the year 2022 to P8,985.5 million for the year 2023.
Net income attributable to the equity holders of the Parent Company increased by P1,207.6 million
or 16.0% from P7,558.5 million for the year 2022 to P8,766.1 million for the year 2023. Basic
earnings per shares increased by 16.5% to P7.455.
Page 85
The table below sets forth a breakdown of JFC’s key operating measures for domestic and
international segments for the year 2023 compared to 2022. Domestic business remains to be the
main driver of growth contributing 96.9% Operating Income to Global JFC. International business
posted an improvement as it contributed 3.1% Operating Income to Global JFC in 2023 compared to
-11.6% in 2022.
The table below sets forth a breakdown of JFC’s key profitability margins for domestic and international
segments for the period ended December 31, 2023, compared to 2022.
EBITDA
The table below sets forth a breakdown of EBITDA for domestic and international segments for the
period ended December 31, 2023, compared to same period in 2022.
The table below sets forth a breakdown of JFC’s key topline measures by brand for the period ended
December 31, 2023 compared to same period in 2022.
SWS %
Store Count Contribution SWS G% SSS G%
SBU COO FR Total FY 2023 FY 2022 vs LY vs LY
Jollibee 437 802 1,239 37.0% 36.4% 18.3% 15.1%
Chowking 174 387 561 7.5% 7.4% 17.4% 15.7%
Greenwich 118 154 272 3.1% 3.2% 12.7% 11.0%
Red Ribbon 177 341 518 2.6% 3.3% -8.9% -9.5%
Mang Inasal 15 558 573 8.2% 7.8% 22.5% 21.4%
Burger King 132 - 132 2.3% 2.1% 28.1% 2.9%
Panda Express (JV) 29 - 29 0.4% 0.3% 54.9% -30.0%
Yoshinoya (JV) 9 - 9 0.1% 0.1% 107.7% 1.9%
Common Man Coffee Roasters (JV) 1 - 1 0.0% -- 100.0% --
Multibrand - 5 5 0.1% 0.0% 822.3% --
Total - Philippines 1,092 2,247 3,339 61.1% 60.5% 17.6% 13.9%
Coffee Bean & Tea Leaf 376 788 1,164 9.7% 10.1% 11.9% 1.7%
Financial Condition
The Jollibee Group ended the year 2023 with consolidated total assets of P244,174.2 million, 4.6%
higher than the P233,402.7 million as at the end of 2022. The following explain the significant
movements in the asset accounts:
- The JFC Group’s consolidated cash and cash equivalents increased to P33,232.5 million, P4,363.2
million or 15.1% higher than the balance at year-end 2022. The movements in the JFC Group’s
cash will be explained further in the cash flow discussion.
- Financial assets at fair value through profit or loss decreased by P397.2 million or 4.8% to P7,853.8
million, primarily due to partial redemption partly offset by marked-to-market gain and favorable
currency translation.
- Consolidated receivables and contract assets decreased by P1,060.0 million or 11.0% to P8,567.4
million, primarily as a result of collection from franchisees of royalty payments and commissary
purchases. Days receivable improved from 15 days at end of 2022 to 14 days at end of 2023.
- Consolidated other current assets increased by P1,360.2 million or 13.3% to P11,556.5 million
primarily as a result of increased prepaid taxes resulting from increasing revenues and increased
prepaid rent.
The Company has a current ratio of 1.09:1.00 as at December 31, 2023, lower than the current ratio of
1.22:1.00 as at December 31, 2022.
- Financial assets at fair value through profit or loss increased by P288.7 million or 1,049.8% to
P316.2 million, primarily due to marked-to-market gain and favorable currency translation.
- Interests in and advances to joint ventures and associates increased by P2,981.7 million or 16.5%
to P21,093.0 million primarily due to additional investments in Titan (P2,019.2 million), advances
to various joint ventures (P261.1 million) and equity share in net earnings (P530.6 million).
- Consolidated property, plant and equipment increased by P3,339.6 million or 9.2% to P39,825.3
million primarily due to increased asset base from new stores opened during the period.
- Right-of-use assets increased by P2,888.1 million or 6.9% to P44,966.1 million primarily due to
additions and translation adjustments during the period partly offset by depreciation for the year
2023 and pre-termination of leases due to closed stores.
- Consolidated finance lease receivables decreased by P40.8 million or 98.1% to P811 thousand,
primarily due to pre-termination and end of lease term.
- Consolidated deferred tax assets – net increased by P1,397.2 million or 23.2% to P7,424.1 million
due to change of position of some entities to Net Deferred Tax Liability.
Page 89
- Consolidated other noncurrent assets increased by P290.1 million or 7.2% to P4,345.4 million,
primarily as a result of the increase in refundable and security deposits for new stores.
Consolidated current liabilities amounted to P67,758.5 million, P6,266.4 million or 10.2% higher than
the 2022 year-end balance of P61,492.1 million. The following explain the significant movements in
current liabilities:
- Consolidated trade payables and other current liabilities and contract liabilities increased by
P3,591.8 million or 8.3% to P46,835.5 million primarily due to higher tax and store-related
accruals.
- Consolidated income tax payable decreased by P16.3 million or 5.0% to P309.8 million,
primarily due to payment of income tax, significantly from SuperFoods Group.
- Consolidated short-term debt increased by P1,375.3 million or 31.4% to P5,751.7 million due
to subsequent drawdowns from credit facilities of CBTL and Smashburger amounting to
SGD10.0 million and USD5.0 million, respectively, and currency translations. See Notes
18 and 31 to the accompanying Audited Consolidated Financial Statements for details.
- Senior debt securities decreased by 0.6% to P33,077.8 million due to forex translation.
- Provisions consist mainly of provisions for asserted claims which are normal to the JFC
Group’s business.
Page 90
Consolidated total equity increased by P5,341.7 million or 6.6% to P86,256.7 million from
P80,915.0 million as at December 31, 2022. The following explain the significant movements in
Equity:
- The change of P293.6 million in cumulative translation adjustment was due to the appreciation
of the Philippine Peso versus the RMB for the year 2023 (Peso to RMB: 7.81) compared to
December 31, 2022 (Peso to RMB: 8.04) and the appreciation of the Philippine Peso versus
the USD for the year 2023 (Peso to USD: 55.37) compared to December 31, 2022
(Peso to USD: 55.76) which decreased the value of the JFC Group’s net assets.
- The increase in remeasurement loss on net defined benefit plan – net of tax by P296.8 million
to P990.1 million was primarily as result of actuarial changes arising from changes in financial
assumptions, basically due to lower discount rates.
- The increase in consolidated retained earnings by P5,720.4 million or 15.7% to P42.041.9 million
pertains to the consolidated net income attributable to equity holders of the Parent Company of
P8,766.1 million for 2023 offset by P3,045.8 million cash dividend payments and accrual for
common and preferred shares.
- The increase in minority interests by P360.5 million or 23.0% to P1,931.0 million pertains mainly
to share in net losses of non-wholly owned subsidiaries partly offset by the equity share of Meko
Holdings Limited.
The JFC Group’s primary source of liquidity is its cash flows from operations generated from revenues
coming from store operations, franchising, and commissary sales to stores.
The cash reserves of the JFC Group in the form of financial assets at FVTPL was at ₱7,853.8 million at
yearend 2023. The JFC Group’s continued strong earnings recovery resulted to an EBITDA of ₱33,814.7
million for the year 2023, an increase of 8.3% or ₱2,601.0 million compared to 2022.
Overall, the JFC Group has financed operations and capital expenditures of its business units and
additional investments primarily through its cash generated from its operations and local bank loans by
the subsidiaries. The capital expenditures spent for the year 2023 amounted to ₱11,337.8 million were
primarily for new stores, store renovations and investments in technology and commissaries.
Consolidated net cash provided by operating activities amounted to ₱37,813.1 million as at December 31,
2023, an increase of ₱13,891.2 or 58.1% million compared to the consolidated net cash provided by
operating activities of ₱23,921.9 million as at December 31, 2022. The increase resulted mainly from a
favorable change in working capital for 2023 compared to 2022 and an increase in EBITDA.
Consolidated net cash used in investing activities amounted to ₱13,771.2 million as at December 31,
2023, an increase of ₱10,800.7 million or 363.6% compared to the net cash provided by investing
activities as at December 31, 2022 of ₱2,970.5 million. This was primarily a result of capital
expenditures for the year 2023 of ₱11,337.8 million and ₱2,214.5 million acquisitions of interests in joint
ventures and associates.
Consolidated net cash used in financing activities amounted to ₱19,665.1 million as at December 31,
2023, primarily as a result of payments of lease liabilities, long-term and short-term debts, interest,
coupons for senior perpetual securities and cash dividends, partly offset by new short-term and long-term
debts.
Cash and cash equivalents at the end of the year 2023 stood at ₱33,232.5 million, ₱4,363.2 million or
15.1% higher than the December 31, 2022 balance of ₱28,869.3 million.
Page 91
1. Any event that will trigger direct or contingent financial obligation that is material to the company,
including any default or acceleration of an obligation.
No events during the period will trigger direct or contingent financial obligation material to the JFC
Group.
No material off-balance sheet transactions, arrangements, obligations were created during the
reporting period.
3. Any material commitments for capital expenditures, the general purpose such commitments, and the
expected sources of funds for such expenditures.
The JFC Group is allocating Php20-23 billion for its Capital Expenditure (CAPEX) budget for 2024
for new stores and renovations, construction of new commissary in Cebu, maintenance of existing
commissaries, main office improvements and investments in technology.
Funding for the 2024 CAPEX will come from JFC’s internally generated funds, issuance of preferred
shares and bank loans.
4. Any seasonal aspects that had a material effect on the financial condition or results of operations.
Food service operations have both peak and lean seasons. Historically, sales in the second and fourth
quarters are strong due to the summer and the Christmas seasons, respectively. Demand during the
first and third quarters usually slackens. The material financial impact of this seasonality has been
considered in the JFC Group’s consolidated financial forecast.
5. Any known trends, events or uncertainties that have had or that are reasonably expected to have a
material favorable or unfavorable impact on net sales or revenues or income from continuing
operations should be described.
- The resurgence of the Covid-19 infections poses a risk for businesses if restrictions are
reimposed. This may adversely affect the financial results, condition, and outlook of the JFC
Group.
- Increased commodity prices driven by rising inflation and fuel price hikes may impact consumer
disposable income and spending habits thus affecting sales volumes. Continued increase in raw
material prices, labor cost and freight charges may result in cost pressures for the JFC Group.
6. Any significant elements of income or loss that did not arise from the registrant’s continuing
operations.
On March 8, 2024, the BOD of the Parent Company approved the following:
- Declaration of a regular cash dividend of ₱8.20525 per share (₱24.6 million) and ₱10.60125 per
shares (₱95.4 million) of preferred shares-Series A and preferred shares-Series B, respectively, to
stockholders of record as at March 25, 2024. The cash dividend is expected to be paid out on
April 15, 2024.
- Appropriation of ₱23,400.0 million from the Parent Company’s unappropriated retained earnings
for capital expenditures in 2024.
- Plan to offer and issue in the Philippines an additional 5.0 million preferred shares with an
oversubscription option of up to 3.0 million preferred shares. The preferred shares will be sold at
a subscription price of ₱1,000.00 per share, with an estimated issue size of ₱5.0 billion up to
₱8.0 billion, if the oversubscription option is fully exercised. These will be cumulative, non-
voting, non-participating, non-convertible, redeemable, peso denominated perpetual preferred
shares.
Discussion of the Jollibee Group's Top Five (5) Key Performance Indicators
System Wide Sales is a measure of all sales to consumers both from company-owned and franchised
stores.
Revenues
Revenues is a measure of (1) all sales made by the Jollibee Group’s company-owned stores (both food
and novelty sales); (2) Commissary sales to franchised stores; (3) fees from stores operated by
franchisees; (4) rental revenues of the Jollibee Group’s investment properties; and (5) revenues from
services rendered by the in-house Construction.
Net Income Margin is the ratio of the Jollibee Group's earnings after interest and tax. This is computed
by dividing consolidated net income by consolidated revenues. The quotient is expressed in
percentage. This measures the Jollibee Group’s return for every peso of revenue earned, after
deducting cost of sales, operating expenses, interest and taxes.
EPS is the portion of the Jollibee Group’s profit allocated to each outstanding share of common stock.
This is computed by dividing the net income for the period attributable to the equity holders of the
Parent Company by the weighted average outstanding shares during the same period. This serves as
an indicator of the Jollibee Group’s profitability.
ROE is the ratio of the JFC Group’s net income attributable to equity holders of the Parent Company
to equity. It is computed by dividing net income attributable to equity holders of the Parent Company
by average equity attributable to equity holders of the Parent Company (average means average of
the amounts as of the beginning and end of the same period). ROE is a measure of return for every
peso of invested equity. The JFC Group also uses ROE for comparing its profitability with other firms
in the same industry.
Financial Ratios
Jollibee Foods Corporation and Subsidiaries
Dec-23 Dec-22
Formula Audited Audited
Liquidity Ratios
The following Management Discussion and Analysis should be read in conjunction with the
submitted Audited Consolidated Financial Statements as at December 31, 2022 and December 31,
2021 and for the years ended December 31, 2022 and 2021.
The accounting policies adopted are consistent with those of the previous financial year, except for
the adoption of new accounting pronouncements starting January 1, 2022. Adoption of these
pronouncements did not have any significant impact on the consolidated statement of financial
position and performance unless otherwise indicated.
Please refer to Note 2 of the attached Audited Consolidated Financial Statements for the Basis of
Preparation, Statement of Compliance, Changes in Accounting Policies and Basis of Consolidation.
Results of Operations
For the Year Ended December 31, 2022 vs. December 30, 2021
(All Amounts are in Million Pesos)
SWS is the JFC Group’s measure for all sales to consumers, both from company-owned and
franchised stores. Consolidated SWS increased by ₱85,102.9 million or 40.2% to ₱296,822.4
million for the year 2022 compared to ₱211,719.5 million for the year 2021.
The tables below show a breakdown of the growth of the Group’s SWS for the following categories
for the years ended December 31, 2022 and 2021:
In Percent Newly
SWS Acquired Impact of
YTD December 2022 (Percent SWS Growth Same Store Store Business FOREX
(Unaudited) Contribution) vs YTD 2021 Sales Growth Network Contribution on SWS
Philippines 60.5 44.6 40.6 3.9 -
PRC 6.2 (0.2) (12.6) 6.3 - 6.0
NA 13.1 29.9 7.1 12.2 - 10.6
EMEAA 6.2 42.0 10.2 20.5 - 11.4
CBTL 10.1 33.0 15.1 7.2 - 10.6
SuperFoods 2.6 100.2 41.3 48.8 - 10.1
Milksha 1.4 - - - - -
Foreign Business 39.5 34.0 7.7 10.5 4.7 11.1
Total Worldwide 100.0 40.2 27.0 6.1 2.0 5.2
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YTD December
(Unaudited) 2022 2021
Percent
Same store sales growth 27.0 13.4
New store contribution 6.1 6.4
Acquisition-driven growth 2.0 -
Foreign exchange rate changes 5.2 0.5
(4) Same store sales growth refers to food sales (net of discount and returns) of JFC Group-owned and
franchised stores that have been in operation for at least 15 months. It excludes sales from new store
openings.
(5) Store network pertains to contribution of new stores opened and acquisition-driven growth refers to the
incremental sales contributed by a newly acquired majority-owned business during theperiod.
(6) Foreign exchange rate changes refer to the impact of currency fluctuations. To eliminate the impact of
currency fluctuations, the JFC Group utilizes constant currencies by converting current SWS using prior
period’s average exchange rate.
Consolidated revenues increased by P58,326.6 million or 38.0% to ₱211,902.2 million for the year
2022 compared to consolidated revenues for the year 2021.
The increase in SWS and revenues was driven by strong same store sales growth which was boosted
by increased mobility amid easing restrictions in various markets where the JFC Group operates, and
menu price adjustments implemented in 2022. Global store network expansion, new acquisition and
currency translation also contributed to the growth.
Same store sales of the Philippine business increased by 40.6% in 2022 compared to 2021. The
international business also grew by 7.7%, with North America increasing by 7.1%, Europe/Middle
East and other parts of Asia (EMEAA) by 10.2%, The Coffee Bean & Tea Leaf (CBTL) by 15.1%,
and SuperFoods by 41.3%. China business’ same store sales declined by 12.6% primarily due to
softness in the economy and COVID- 19 related restrictions imposed in some parts of the country.
As at December 31, 2022, the JFC Group ended with 6,480 company-owned and franchised stores
globally, of which 1% were temporarily closed due to restrictions related to the Covid-19 pandemic
compared to 3% as at December 31, 2021.
The table below shows the percentages of the JFC Group’s temporarily closed stores due to
the Covid-19 pandemic by geographic region and as at the dates indicated:
Months
Dec-2021 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Philippines 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
China 1% 3% 2% 17% 22% 18% 3% 1% 2% 1% 3% 10% 4%
NA (ex-CBTL) 2% 2% 2% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0%
EMEAA (ex-SuperFoods) 0% 0% 2% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
CBTL 7% 6% 7% 6% 3% 3% 4% 4% 4% 3% 3% 2% 2%
SuperFoods 9% 7% 7% 6% 5% 5% 4% 4% 4% 3% 3% 3% 3%
Total 3% 2% 2% 3% 3% 2% 1% 1% 1% 1% 1% 1% 1%
Note: Excludes Milksha
The JFC Group opened 542 new stores in 2022: 123 in the Philippines and 419 overseas (86 in China,
25 in NA and 35 in EMEAA. CBTL, SuperFoods, and Milksha opened 103, 137 and 33 stores,
respectively. A total of 259 stores were permanently closed in 2022: 58 in the Philippines and 201
abroad.
Direct Costs
Consolidated direct costs for the year 2022 increased to ₱174,945.9 million, which is ₱47,449.2
million or 37.2% higher than the consolidated direct costs for the year 2021, primarily as a result
of an increase in: (i) the cost of inventories and (ii) store and manufacturing costs.
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The following table summarizes the breakdown of the Jollibee Group’s direct costs for the years
ended December 31, 2022 and 2021 and the percentage of each component and the consolidated cost
of sales to consolidated revenues:
Years Ended December 31 Change Pct to Rev
2022 2021
(Audited) (Audited) Amount Pct 2022 2021
Cost of Sales
Cost of inventories 99,273.2 68,694.6 30,578.6 44.5% 46.8% 44.7%
Personnel costs:
Salaries, wages and other employee benefits 23,278.2 18,543.9 4,734.2 25.5% 11.0% 12.1%
Pension expense 213.1 149.3 63.7 42.7% 0.1% 0.1%
Depreciation and amortization 14,908.0 12,831.6 2,076.3 16.2% 7.0% 8.4%
Contracted services 8,418.0 6,358.7 2,059.3 32.4% 4.0% 4.1%
Electricity and other utilities 5,468.6 4,030.7 1,437.9 35.7% 2.6% 2.6%
Rent 4,559.7 2,741.7 1,818.0 66.3% 2.2% 1.8%
Supplies 3,364.4 2,474.0 890.5 36.0% 1.6% 1.6%
Repairs and maintenance 2,576.4 1,884.2 692.2 36.7% 1.2% 1.2%
Security and janitorial 1,097.3 905.2 192.1 21.2% 0.5% 0.6%
Communication 371.1 328.6 42.5 12.9% 0.2% 0.2%
Professional fees 122.0 86.1 36.0 41.8% 0.1% 0.1%
Representation and entertainment 90.2 61.6 28.6 46.5% 0.0% 0.0%
Delivery costs, insurance and others 7,806.1 6,127.5 1,678.7 27.4% 3.7% 4.0%
171,546.3 125,217.8 46,328.5 37.0% 81.0% 81.5%
Cost of Services
Advertising expense 3,399.6 2,278.8 1,120.7 49.2% 1.6% 1.5%
174,945.9 127,496.7 47,449.2 37.2% 82.6% 83.0%
Consolidated cost of inventories increased at a faster rate than revenues. As a percentage of revenues,
consolidated cost of inventories increased primarily due to increase in raw material prices and freight
costs driven by macroeconomic factors including the conflict in Russia and Ukraine, changes in
exchange rate against local currencies, rising inflation, supply chain issues, Covid-19 surge in some
areas of the global market. The JFC Group’s raw material price inflation increased by low double-
digits in 2022 compared to low-single digits in 2021. The JFC Group has effectively mitigated cost
inflation risks through (i) pricing actions at the commissary and store levels; (ii) effective cost
management in supply chain, commissaries and stores; and (iii) global procurement initiatives and
constant cost analysis.
Consolidated store and manufacturing costs increased year-on-year resulting from new corporate store
additions. As a percentage of revenue, consolidated store and manufacturing costs decreased by 2.6%
driven by the strong revenue growth.
The following discussion details the components of store and manufacturing costs, for the year
ended December 31, 2022 compared to December 31, 2021:
For the year 2022, personnel costs, depreciation, contracted services, rent, electricity and water,
supplies, repairs and maintenance, security and janitorial, communication and representation and
entertainment expenses increased as a result of the JFC Group’s continued store expansion, new
acquisition and resumption of business activities. There were also lesser number of temporarily
closed stores in 2022 compared to 2021 as shown in the table above (please refer to JFC Group’s
temporarily closed stores due to Covid-19 on page 2).
Professional fees increased, primarily as a result of the resumption of store and commissary projects
due to easing of restrictions.
Delivery costs, insurance and others increased, primarily due to higher delivery costs because of
increased sales of the delivery business.
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Gross Profit
As a result of the foregoing, gross profit increased by ₱10,877.4 million or 41.7% from ₱26,078.9
million for the year 2021 to ₱36,956.3 million for the year 2022.
The table below provides a breakdown of the gross profit margin for the Philippine and International
businesses for the years ended December 31, 2022 and 2021:
The improvement in the gross profit margin was driven by the Philippine business primarily due to
strong topline growth and effective cost management in supply chain, commissaries and stores.
Expenses
Consolidated expenses increased by ₱7,210.7 million or 36.4%. from ₱19,804.3 million for the year
2021 to ₱27,015.0 million for the year 2022, primarily as a result of increased headcount particularly
for the international operations and implementation of the hybrid work arrangement in the corporate
headquarters. Increased provisions and advertising and promotions expenses also contributed to the
increase. Consolidate expenses as a percentage of revenue improved by 0.2%.
Page 99
The following table summarizes the breakdown of the Jollibee Group’s expenses for the years ended
December 31, 2022 and 2021 and the percentage of each expense item to consolidated revenues:
Personnel costs:
Salaries, wages and other employee benefits 11,517.3 8,994.5 2,522.8 28.0% 5.4% 5.9%
Stock options expense 185.0 155.5 29.5 19.0% 0.1% 0.1%
Pension expense 254.5 169.0 85.5 50.6% 0.1% 0.1%
Taxes and licenses 2,075.6 1,571.7 503.9 32.1% 1.0% 1.0%
Professional fees 1,377.2 1,143.6 233.6 20.4% 0.6% 0.7%
Contracted services 915.6 718.6 197.0 27.4% 0.4% 0.5%
Depreciation and amortization 690.6 650.6 40.0 6.1% 0.3% 0.4%
Impairment in value of:
Trademark 463.1 - 463.1 100.0% 0.2% 0.0%
Receivables 415.4 210.9 204.5 97.0% 0.2% 0.1%
Inventories 274.3 23.7 250.6 1056.3% 0.1% 0.0%
Other current assets 121.5 - 121.5 100.0% 0.1% 0.0%
Property, plant & equipment 107.9 44.4 63.5 100.0% 0.1% 0.0%
Operating lease receivables - 8.0 (8.0) -100.0% 0.0% 0.0%
Membership and subscriptions 505.4 391.0 114.4 29.3% 0.2% 0.3%
Rent 498.4 427.1 71.2 16.7% 0.2% 0.3%
Transportation and travel 492.7 336.6 156.1 46.4% 0.2% 0.2%
Repairs and maintenance 491.2 348.5 142.7 40.9% 0.2% 0.2%
Loss on retirements and disposals of property,
plant and equipment and intangibles 363.1 54.6 308.6 565.6% 0.2% 0.0%
Communication 274.0 233.3 40.7 17.5% 0.1% 0.2%
Reversals of provision for impairment on:
Property, plant & equipment (262.3) (390.0) 127.8 -32.8% -0.1% -0.3%
Right-of-use assets (87.0) (285.6) 198.7 100.0% 0.0% -0.2%
Inventories (49.3) (9.5) (39.8) 420.4% 0.0% 0.0%
Receivables (4.1) (54.2) 50.1 -92.4% 0.0% 0.0%
Insurance 170.8 114.0 56.8 49.9% 0.1% 0.1%
Supplies 149.0 103.6 45.4 43.8% 0.1% 0.1%
Donations 97.9 54.2 43.8 80.8% 0.0% 0.0%
Training 94.7 59.7 35.0 58.5% 0.0% 0.0%
Corporate events 88.8 32.9 55.9 169.8% 0.0% 0.0%
Representation and entertainment 54.6 49.9 4.8 9.6% 0.0% 0.0%
Electricity and other utilities 47.3 39.3 8.0 20.4% 0.0% 0.0%
Association dues 37.0 46.2 (9.2) -19.9% 0.0% 0.0%
Security and janitorial 9.0 11.7 (2.6) -22.5% 0.0% 0.0%
Research and development and others 1,536.7 1,219.6 317.1 26.0% 0.7% 0.8%
Total General and Administrative Expenses 22,905.9 16,473.1 6,432.8 39.1% 10.8% 10.7%
Advertising and promotions 4,109.1 3,331.2 777.9 23.4% 1.9% 2.2%
27,015.0 19,804.3 7,210.7 36.4% 12.7% 12.9%
The following discussion details the components of the JFC Group’s expenses for the year ended
December 31, 2022 compared to December 31, 2021:
Personnel costs increased, primarily as a result of: (1) headcount increase; and (2) higher
performance-related increases in basic pay, employee promotions, bonuses and upgrades
in employee benefits.
Taxes and licenses increased due to higher business-related taxes and license fees, both domestic
and foreign businesses resulting from increase in revenues.
Professional fees increased mainly due to higher fees relating to talent search and acquisition, market
research, and other consulting and legal fees.
Contracted services increased driven by the JFC Group’s Business Technology projects.
Depreciation and amortization increased primarily as a result of the Group’s fixed asset base
resulting from the growth of the Group’s businesses.
Page 100
The JFC Group recognized provisions for impairment of value of trademark, receivables,
inventories, other current assets and property, plant and equipment totaling to ₱1,382.2 million,
following certain assessments performed by the JFC Group, In addition, the JFC Group recognized
a reversal of ₱402.7 million on previously recognized provisions for impairment on property, plant
and equipment, inventories and receivables, in 2022 following certain assessments performed by the
JFC Group. See Note 22 of the accompanying Audited Consolidated Financial Statements for
details.
Membership and subscription expenses increased primarily due to an increase in cloud subscriptions.
Rent increased on account of a lower base last year due to work from home arrangement and
additional office spaces for some foreign subsidiaries in 2022.
Transportation and travel expenses increased, primarily due to resumption of business travels arising
from the easing of restrictions in the Philippines and other countries where the JFC Group has
operations.
Repair and maintenance expenses increased due to higher business software license fees.
The JFC Group incurred loss on retirements and disposal of property, plant and equipment
amounting to P363.1 million as a result of change in store ownership, store closures and fixed
asset disposals.
Communication expenses increased due to higher call center charges for the Philippine business.
Consolidated insurance expense increased due to additional coverage resulting to a higher annual
premium for the Philippine business. For the international operations, the increase was
significantly due to insurance renewals for property, auto, general liability, etc. for a subsidiary of
the Parent Company.
Consolidated supplies increased due to quarterly update of menu boards, deployment of Jollibot
robot servers and implementation of return to office for the Parent and most of its subsidiaries.
Donations increased mainly due to donations made to the Jollibee Group Foundation, Inc.
Training expenses increased, primarily due to resumption of some training programs resulting
from the easing of Covid restrictions.
Corporate events increased due to the resumption of various businesses’ events such as National
Conventions particularly in the Philippines and North America.
Representation and entertainment expenses increased driven by the international business due to
increased activities related to store expansion.
Electricity and water increased primarily due to higher consumption as office-based employees in the
Philippines and in some countries have started to work onsite two days a week.
Association dues decreased on account of a higher base due to monthly subscription related to site
usage, postings of foreign subsidiaries of the Parent Company.
Security and janitorial expenses decreased on account of a higher base due to late billing of
charges in 2022.
Research and development and others increased due to higher research and development expenses of
the JFC Group.
Page 101
The increase in advertising and promotions was primarily due to product launches and other
marketing campaigns of the Philippine and international business and timing factor due to delayed
billings by advertising agencies.
Years Ended December 31 Change Pct to Rev
2022 2021
(Audited) (Audited) Amount Pct 2022 2021
Advertising and promotion 4,109.1 3,331.2 777.9 23.4% 1.9% 2.2%
Operating Income
As a result of the foregoing, operating income increased by ₱3,666.8 million or 58.4% from an
operating income of ₱6,274.6 million for the year 2021 to ₱9,941.4 million for year 2022.
Interest income increased primarily as a result of higher cash balance and higher money market
placement interest rates in the Philippines.
Interest expense increased mainly due to increased interest expense from bank loans and debt
securities and higher interest expense on PFRS 16–Leases.
Equity in net earnings of joint ventures and an associate for 2022 pertains primarily to the equity in
net earnings of Golden Bee (Jollibee UAE), Entrek (Jollibee Brunei), CentralHub and C-Joy Poultry
Meats Productions, Inc., offset by the equity in net losses of Tortas Frontera, Titan Dining L.P.,
Beeworks Food (Jollibee West Malaysia), Panda Express, and Yoshinoya. See Note 11 to the
accompanying Audited Consolidated Financial Statements for details.
Page 102
Gain on land conveyance and disposals 4,896.6 - 4,896.6 100.0% 2.3% 0.0%
Write-off of liabilities 1,922.5 2,824.0 (901.5) -31.9% 0.9% 1.8%
Marked-to-market gain (loss) on financial assets at FVTPL (1,050.2) 197.0 (1,247.2) -633.2% -0.5% 0.1%
Bank charges (668.5) (470.6) (197.8) -42.0% -0.3% -0.3%
Provisions (565.7) 291.1 (856.8) 100.0% -0.3% 0.2%
Rebates, suppliers' incentives and government subsidies 476.7 462.8 13.9 3.0% 0.2% 0.3%
Gain on pre-termination of lease agreements 171.6 258.3 (86.7) -33.6% 0.1% 0.2%
Foreign exchange gain - net 44.0 41.1 2.8 6.9% 0.0% 0.0%
Penalties and charges 29.8 35.0 (5.2) -14.8% 0.0% 0.0%
Other rentals 29.5 9.7 19.7 202.9% 0.0% 0.0%
Charges to franchisees 6.2 4.6 1.6 35.2% 0.0% 0.0%
Insurance claims and others 377.2 240.0 137.2 57.2% 0.2% 0.2%
5,669.7 3,893.0 1,776.7 45.6% 2.7% 2.5%
The increase in consolidated other income - net was primarily due to gains from land conveyance and
sale of a land property in the US partly offset by marked-to-market loss on financial assets at FVTPL,
provision for contingencies, and lower (1) other income from reversal of prior years’ accruals and
liabilities; and (2) government subsidy due to Covid-19 pandemic compared to 2021.
Provision for income tax for 2022 increased due mainly to higher taxable income, particularly of
Philippine entities and foreign, derecognition of DTA on Royalty Payable due to equitization. The
JFC Group also benefited from DTA on Net Operating Loss Carry Over (NOLCO) of certain
subsidiaries in 2021.
Net Income
As a result of the foregoing, net income increased by ₱1,836.5 million or 33.4%, from ₱5,502.0
million for the year 2021 to ₱7,338.5 million for the year 2022.
Net income attributable to the equity holders of the Parent Company increased by ₱1,576.8 million
or 26.4% from ₱5,981.7 million for the year 2021 to P7,558.5 million for the year 2022. Basic
earnings per shares increased by 20.7% to ₱6.400.
Page 103
The table below sets forth a breakdown of JFC’s key operating measures for domestic and
international segments for the year 2022 compared to 2021 and 2019. Domestic business remains
to be the main driver of growth contributing 111.6% Operating Income to Global JFC.
International business was challenged due to China, North America and Europe operations –
higher Operating Expenses and Advertising (Opex and Ads) on this segment is driven by business
building efforts to mirror JFC’s success in the domestic front.
The table below sets forth a breakdown of JFC’s key profitability margins for domestic and
international segments for the period ended December 31, 2022, compared to same periods in 2021
and 2019. Drag from International business was primarily due to lockdowns in China and operating
losses from US and European markets which are still in investment phase.
EBITDA
The table below sets forth a breakdown of EBITDA for domestic and international segments for the
period ended December 31, 2022, compared to same period in 2021.
in Php Mn Change vs LY
Dec YTD Metrics
2022 2021 Amount %
Philippines 23,812 16,044 7,768 48.4
International 7,402 7,562 (160) (2.1)
Global 31,214 23,606 7,607 32.2
Page 105
The table below sets forth a breakdown of JFC’s key topline measures by brand for 2022 compared to
2021 and 2019.
Yonghe King 305 116 421 5.1% 7.5% 6.2% -12.0% -17.7%
Hong Zhuang Yuan 51 7 58 0.8% 1.0% 1.0% -14.5% -2.7%
Dunkin' Donuts - - - 0.0% 0.0% 0.1% -30.6% --
Tim Ho Wan (JV) 17 17 0.2% 0.2% 0.0% -30.7% --
Total - China 373 123 496 6.2% 8.7% 7.2% -12.6% -16.0%
Jollibee - Other Asia 166 57 223 3.5% 3.1% 2.5% 13.3% 9.2%
Jollibee - Europe / Guam 15 1 16 0.7% 0.6% 0.3% 0.0% -16.5%
Jollibee Middle East - 53 53 1.5% 1.7% 1.4% 13.2% 0.2%
Chowking Middle East - 36 36 0.6% 0.7% 0.7% -2.6% -6.9%
Total - EMEAA 181 147 328 6.2% 6.1% 5.0% 10.2% 2.8%
Coffee Bean and Tea Leaf 318 753 1,071 10.1% 10.7% 3.4% 15.1% 11.3%
Total - Superfoods 509 126 635 2.6% 1.8% 2.3% 41.3% 2.9%
Total - Foreign Business 1,676 1,519 3,195 39.5% 41.4% 29.2% 7.7% 7.3%
Total - World Wide 2,766 3,714 6,480 100.0% 100.0% 100.0% 27.0% 2.7%
Page 106
Financial Condition
The Jollibee Group ended the year 2022 with consolidated total assets of P233,402.7 million,
10.7% higher than the P210,838.2 million as at the end of 2021. The following explain the
significant movements in the asset accounts:
- The JFC Group’s consolidated cash and cash equivalents increased to P28,869.3 million,
P4,176.6 million or 16.9% higher than the balance at year-end 2021. The movements in
the JFC Group’s cash will be explained further in the cash flow discussion.
- Financial assets at fair value through profit and loss (FVTPL) pertain to unused proceeds
from the issuance of senior perpetual securities and senior debt securities in January 2020
and June 2020, respectively, which were invested by the JFC Group in portfolio
investments. The decline was primarily due to partial redemption and marked-to-market
foreign exchange (forex) loss, net of additional placements and forex translation.
The Company has a current ratio of 1.22:1.00 as at December 31, 2022, lower than the current
ratio of 1.43:1.00 as at December 31, 2021.
- Consolidated goodwill and other intangible assets increased by P1,104.7 million or 2.2% to
P51,715.5 million primarily due to translation adjustment and provisional goodwill
resulting from Milksha acquisition, partly offset by amortization of other intangibles.
- Consolidated deferred tax assets – net decreased by P848.0 million to P6,026.8 million due
to set-up of additional DTL for Asset Swap and Sublease Arrangement, utilization of DTA
on NOLCO by Philippine Entities and lower DTA on accrued expenses of US entities.
- Consolidated trade payables and other current liabilities and contract liabilities increased by
P10,290.9 million or 31.2% to P43,243.7 million primarily due to higher inventories and
store-related accruals resulting.
- Consolidated income tax payable increased by P177.4 million or 119.4% to P326.1 million,
primarily due to higher taxable income resulting from business recovery, partly offset by the
2021 income taxes due for the Philippine entities which were paid in April 2022.
- Senior debt securities increased by 9.4% to P33,288.3 million due to forex translation.
Page 108
- Consolidated pension liability decreased by P525.2 million or 21.7% to P1,891.3 million, primarily
due to actuarial changes arising from changes in financial assumptions and other adjustments,
partially offset by additional accruals during the year.
- Provisions consist mainly of provisions for asserted claims which are normal to the JFC Group’s
business.
Consolidated total equity increased by P6,730.9 million or 9.1% to P80,915.0 million from
P74,184.2 million as at December 31, 2021. The following explain the significant movements in
Equity:
- On October 14, 2021, the Parent Company issued Preferred Shares – Series A (3.0 million)
and Series B (9.0 million) totaling 12.0 million shares, with a par value of P1.00 per share.
The Preferred Shares were listed on the Philippine Stock Exchange on the same date.
- Capital Stock and Additional paid-in capital increased due to issuance of new shares
pertaining to the company’s stock option program and the related stock option expense
accrual.
- The change of P616.9 million in cumulative translation adjustment was due to the
depreciation of the Philippine Peso versus the RMB for the year 2022 (Peso to RMB: 8.04)
compared to December 31, 2021 (Peso to RMB: 7.97) and the depreciation of the
Philippine Peso versus the USD for the year 2022 (Peso to USD: 55.76) compared to
December 31, 2021 (Peso to USD: 51.00) which increased the value of the JFC Group’s
net assets.
- The decrease in remeasurement loss on net defined benefit plan – net of tax by P 447.5
million to P693.3 million was primarily as result of actuarial changes arising from changes
in financial assumptions, basically due to higher discount rates.
- Comprehensive loss on derivative liability turned nil due to pre-termination of interest rate
swap as a result of the prepayment of JWPL’s USD110.0 million loan in January 2022.
The JFC Group’s primary source of liquidity is from its cash flows from operations generated
from revenues coming from store operations, franchising, and commissary sales to stores.
Page 109
The cash reserves of the JFC Group in the form of financial assets at FVTPL was at ₱8,251.0
million as at December 31, 2022, a decrease of 42.8% compared to the ₱14,413.0 million balance
as at December 31, 2021. This was partly used to service its USD-denominated debt and
financing obligations, and fund the working capital and capital expenditures, especially for the
Group’s North America and Europe store expansion as their respective economies continue to
recover from the pandemic. The funds were also used for additional investments in Tim Ho Wan,
through Titan Dining LP, and the acquisition of Milksha. The JFC Group’s continued strong
earnings recovery resulted to an EBITDA of ₱31,213.7 million for the year 2022, an increase of
32.2% or ₱7,607.3 million compared to the EBITDA of ₱23,606.5 million for the year 2021.
Overall, the JFC Group has financed operations and capital expenditures of its business units and
additional investments primarily through its cash generated from its operations and from its cash
reserves (reflected in the balance sheet as financial assets at FVTPL). The capital expenditures
spent for the year 2022 amounted to ₱9,682.7 million were primarily related to new stores and
renovations.
Consolidated net cash used in investing activities amounted to ₱2,970.5 million as at December
31, 2022, a decrease of ₱10,935.3 million or 137.3% compared to the net cash provided by
investing activities as at December 31, 2021 of ₱7,964.9 million. This was primarily a result of
capital expenditures for the year 2022 of ₱9,682.7 and ₱1,210.0 million acquisitions of interests
in joint ventures and associates as well as an increase in financial assets at fair value through
profit or loss of ₱1,531.2 million.
Consolidated net cash used in financing activities amounted to ₱16,772.3 million as at December
31, 2022, primarily as a result of payments of short-term debt, lease liabilities, long-term debt,
interest, coupons for senior perpetual securities and cash dividends, partly offset by the issuance
of preferred shares and new loans.
Cash and cash equivalents at the end of the year 2022 stood at ₱28,869.3 million, ₱4,176.6
million or 16.9% higher than the December 31, 2021 balance of ₱24,692.7 million.
1. Any event that will trigger direct or contingent financial obligation that is material to the
company, including any default or acceleration of an obligation.
No events during the period will trigger direct or contingent financial obligation material to
the JFC Group.
3. Any material commitments for capital expenditures, the general purpose such commitments,
and the expected sources of funds for such expenditures.
Page 110
The JFC Group spent ₱9,682.7 million for capital expenditures for 2022, 23.1% higher
compared to the ₱7,863.8 million spent in December 2021. These capital expenditures were
primarily funded by cash generated from operations, bank loans and excess cash from the
remaining proceeds from the bond issuances.
JFC opened 542 new stores in 2022, of which 291 are owned stores. JFC plans to build a new
commissary facility in Cebu in order to support its expansion plans in Visayas and Mindanao.
4. Any seasonal aspects that had a material effect on the financial condition or results of
operations.
Food service operations have both peak and lean seasons. Historically, sales in the second and
fourth quarters are strong due to the summer and the Christmas seasons, respectively. Demand
during the first and third quarters usually slackens. The material financial impact of this
seasonality has been considered in the JFC Group’s consolidated financial forecast.
5. Any know trends, events or uncertainties that have had or that are reasonably expected to
have a material favorable or unfavorable impact on net sales or revenues or income from
continuing operations should be described.
- The resurgence of the Covid-19 infections poses a risk for businesses if restrictions are
reimposed. This may adversely affect the financial results, condition and outlook of the
JFC Group.
- Increased commodity prices driven by rising inflation and fuel price hikes may impact
consumer disposable income and spending habits thus affecting sales volumes. Continued
increase in raw material prices, labor cost and freight charges may result in cost pressures
for the JFC Group.
- The pandemic has disrupted global supply chains and will likely have an ongoing impact
this year. Strong consumer demand for restaurant food because of easing Covid-19
restrictions and increased mobility can further exacerbate supply issues. Supply shortage
will have a negative impact on restaurant sales.
6. Any significant elements of income or loss that did not arise from the registrant’s continuing
operations.
All of the JFC Group’s income arose from its continuing operations.
Dividend Declaration
On March 14, 2023, the Board of Directors of Jollibee Foods Corporation approved the
declaration of a regular cash dividend of ₱8.20525 per share for Series A preferred shares and
₱10.60125 per share for Series B preferred shares, for a total payout of ₱24,615.8 million and
₱95,411.3 million, respectively. The regular cash dividend will be given to JFC stockholders
of record as of March 29, 2023 (ex-dividend date of March 24, 2023). Payment date is on
April 14, 2023.
Page 111
Discussion of the Jollibee Group's Top Five (5) Key Performance Indicators
System Wide Sales is a measure of all sales to consumers both from company-owned and franchised
stores.
Revenues
Revenues is a measure of (1) all sales made by the Jollibee Group’s company-owned stores (both food
and novelty sales); (2) Commissary sales to franchised stores; (3) fees from stores operated by
franchisees; (4) rental revenues of the Jollibee Group’s investment properties; and (5) revenues from
services rendered by the in-house Construction.
Net Income Margin is the ratio of the Jollibee Group's earnings after interest and tax. This is computed
by dividing consolidated net income by consolidated revenues. The quotient is expressed in
percentage. This measures the Jollibee Group’s return for every peso of revenue earned, after
deducting cost of sales, operating expenses, interest and taxes.
EPS is the portion of the Jollibee Group’s profit allocated to each outstanding share of common stock.
This is computed by dividing the net income for the period attributable to the equity holders of the
Parent Company by the weighted average outstanding shares during the same period. This serves as
an indicator of the Jollibee Group’s profitability.
ROE is the ratio of the JFC Group’s net income attributable to equity holders of the Parent Company
to equity. It is computed by dividing net income attributable to equity holders of the Parent Company
by average equity attributable to equity holders of the Parent Company (average means average of the
amounts as of the beginning and end of the same period). ROE is a measure of return for every peso
of invested equity. The JFC Group also uses ROE for comparing its profitability with other firms in
the same industry.
Financial Ratios
Jollibee Foods Corporation and Subsidiaries
Dec-22 Dec-21
Formula Audited Audited
Liquidity Ratios
Mr. Tan Caktiong, born in 1953, 70, Filipino, is the Chairman of the Board of Directors of the
Company. He has been a member of the Board since 1978 and was President and Chief
Executive Officer of the Company until July 1, 2014, after which he continued to serve as
Chairman of the Board. Mr. Tan Caktiong is a member of the Executive, Nomination, and
Corporate Governance Committees of the Board of Directors. He is also the Chairman of the
Compensation Committee.
Listed
Companies DoubleDragon Properties Corp.
Non-Executive
Director and
Co- chairman
Non-listed Companies
Director Mang Inasal Phils. Inc.
Director RRB Holdings, Inc.
Director Red Ribbon Bakeshop, Inc. 5
Director Honeystar Holdings Corporation
Director Chanceux, Inc.
Director Bee Good! Inc.
Director SJBF LLC
Director Honeybee Foods (Canada) Corporation
Director Honeybee Foods Corp.
Director Red Ribbon Bakeshop Inc. (USA)
Director Chowking Food Corporation (USA)
Director Yong He Holdings Co. Ltd.
Director Centenary Ventures Limited
Director Southsea Binaries Limited
Director Belmont Enterprises Ventures Ltd.
Director Jollibee International (BVI) Ltd.
5 No longer director of RRB Holdings, Inc. and Red Ribbon Bakeshop, Inc. as of January 8, 2024.
Page 114
Mr. Tan Untiong, born in 1953, 70, Filipino, has been the Corporate Secretary of the
Company since 1994, and a member of the Board since 1993. He is a member of the
Executive, Nomination and Audit Committees of the Board of Directors.
Mr. Tan Untiong has also been the Vice President for Real Estate since 1989Mr. Tan Untiong
also served as the Chief Real Estate Officer of JFC, and is now the Chief Business Support
Officer, effective December 2023.
Page 115
Listed Companies
Non-Executive Director DoubleDragon Properties Corp.
Non-listed Companies
Ernesto Tanmantiong
Mr. Tanmantiong, born in 1958, 65, Filipino, is the President and Chief Executive Officer of
the Corporation, effective January 1, 2014. He has been a member of the Board since 1987, and
previously served as the Treasurer and Chief Operating Officer of the Company. He is also a
member of the Executive and Nomination Committees of the Board of Directors.
6
No longer director of RRB Holdings, Inc. and Red Ribbon Bakeshop, Inc. as of January 8, 2024.
Page 116
Mr. Ang, born in 1950, 73, Filipino, has been a member of the Board since 1978. He is a
Page 117
Mr. Chua Poe Eng, born in 1947, 76, Filipino, has been a member of the Board since 1978. He
is a member of the Audit Committee of the Board of Directors.
Mr. Panganiban, born in 1936, 87, was elected to the Board of Directors in 2012. Mr.
Panganiban was the Chief Justice of the Philippine Supreme Court from 2005 to 2006.
Concurrent with his position as Chief Justice, he was also the Chairperson of the Presidential
Electoral Tribunal, the Judicial and Bar Council and the Philippine Judicial Academy. Prior to
his elevation as Chief Justice in 2005, Mr. Panganiban was a Justice of the Supreme Court in
1995 to 2005. He is also a column writer for the Philippine Daily Inquirer and Senior Legal
Advisor for the Department of Energy’s Law and Energy Advisory Panel.
Mr. Panganiban is a member of the Executive and Compensation Committees and is the
Chairman of the Nomination Committee.
Listed Companies
Independent Director Asian Terminals, Inc.
Independent Director GMA Network, Inc.
Independent Director GMA Holdings, Inc.
Independent Director JG Summit Holdings, Inc.
Independent Director MERALCO
Independent Director Petron Corporation
Independent Director Philippine Long Distance Telephone Company
Independent Director RL Commercial REIT, Inc..
Senior Adviser Metropolitan Bank and Trust Company
Member, Advisory Council Bank of the Philippine Islands
Adviser DoubleDragon Properties Corp.
Adviser MerryMart Consumer Corporation
Non-listed Companies
Independent Advisor Metro Pacific Investments Corp.
Independent Director Asian Hospital Inc.
Independent Director TeaM Energy Corporation
Independent Director Metro Pacific Tollways Corp.
Chairman Board of Advisers - Metrobank Foundation
Chairman Pan Philippine Resources Corp.
Page 118
Cesar V. Purisima
Mr. Purisima, born in 1960, 63, Filipino, was elected as an Independent Director of the
Company in 2020. He is a member of the Nomination and Corporate Governance Committees.
He is also the Chairman of the Audit Committee of the Board of Directors.
Mr. Purisima was the Secretary of the Department of Finance of the Philippines from 2010 to
2016 and also the Secretary of the Department of Trade and Industry of the Philippines from
2004 to 2005. Aside from his work in the public sector, his positions in the private sector include
being the Managing Partner for Assurance and Business Advisory for Andersen Worldwide and
the Chairman and Managing Partner of SGV & Co.
Listed Companies
Independent Director Ayala Land
Independent Director Ayala Corporation
Independent Director Universal Robina Corporation
Independent Director AIA Group Limited
Member of Global Advisory Sumitomo Mitsui Banking Corporation
Council
Member, Board of Advisors ABS-CBN Corporation
Independent Director Bank of the Philippine Islands
Kevin Goh
Mr. Goh, born in 1975, 48, Singaporean, is an Independent Director of Jollibee Foods
Corporation since 2021. He is currently the Chief Executive Officer of Lodging for CapitaLand
Limited which is a publicly listed company in Singapore as well Chief Executive Officer of The
Ascott Limited. In addition, Mr. Goh also oversees CapitaLand’s Group Centre of
Excellence for Digital & Technology. Under his leadership, Ascott continued its global
expansion in 2020 despite the COVID-19 pandemic, adding over 14,200 new units across 71
Page 119
properties and opening of over 3,900 units in 25 properties. He also played an instrumental role
in the combination of Ascott Residence Trust (ART) and Ascendas Hospitality Trust in
December 2019, which has resulted in the creation of the largest hospitality trust in Asia-
Pacific. Mr. Goh was previously the COO of Ascott, a role he assumed in December 2016,
where he oversaw operational aspects of the serviced residence business and new growth
opportunities. Prior to this, he was Ascott’s MD for North Asia since 2013, where he
spearheaded Ascott’s investments and operations in China, Japan and Korea. After joining
Ascott China in 2007, Mr. Goh was based in China for over 10 years. During his stay in China,
he served as Regional GM for South & East China, Vice President for Asset Management
and Vice President for Corporate Services. Prior to joining Ascott, Mr. Goh was with
Accenture, one of Fortune 500’s largest global management consulting, technology services
and outsourcing companies. Throughout his seven-year career with Accenture, he worked on
various systems implementation projects in the telecommunications and high-technology
industries in both Singapore and Australia. Mr. Goh was awarded the prestigious Medal of
Commendation at the NTUC Singapore May Day Awards 2020 for his strong advocate
for productivity improvement and upgrading of employees’ capabilities to ensure a dynamic
and digitally savvy workforce. Moreover, Mr. Goh holds a Bachelor of Mechanical Engineering
(Honours) from NUS and is a Chartered Financial Analyst charter holder.
Ee Rong Chong
Ms. Chong, born in 1975, 47, Singaporean, has been an Independent Director of Jollibee Foods
Corporation since 2021. She is a business leader, Non-Executive Director and an active
Committee Member with over twenty five years of board and executive management
experience across corporate, professional services and not-for-profit organizations. Ms.
Chong’s expertise include business consulting, risk and reputation management, stakeholder
engagement, strategic brand management and integrated marketing. Additionally, Ms. Chong
has an impressive track record as a commercial and marketing leader. She was most recently
Deputy Managing Director of Raffles Medical Group (RMG), charged with transforming the
commercial operations of one of the region’s largest healthcare players. Prior to RMG she spent
eighteen years with Ogilvy & Mather, in local and regional roles across Singapore, Australia
and Malaysia. Her last role was Group Managing Director, Company Director and Executive
Committee Member of Ogilvy Singapore where she spearheaded the agency’s growth and
transformation to realign capabilities, digitizing the core, expansion of the client portfolio and
strategic investments into digital marketing and social commerce. Moreover, Ms. Chong has
worked extensively around the region, collaborating across multi-cultural organizations and
teams. A large part of her experience is strategic stakeholder engagement, working with public
and private sector clients across FMCG, financial services, hospitality and Government
Agencies across B2C, B2B, B2G and G2G campaigns. She has a stellar reputation and business
network and is active in the local community having served on several high-profile National
Committees, Statutory Agencies, non-profit and corporate entities. She completed her Bachelor
of Economics degree in University of Adelaide in 1996 and Master of Arts from the University
of South Australia in 2004. She has a Diploma in Executive Directorship from the Singapore
Management University, given in 2019.
Page 120
Non-Listed Companies
Director Certis Group (Certis Cisco Security, Pte
Ltd)
Vice-Chair National Volunteer and Philanthropy Centre
Vice-Chair Singapore Business Federation
Corporate Officers
The following table sets forth the Company’s corporate officers as of December 31, 2023:
Mr. Lim, Filipino, born in 1981, Filipino, is the Treasurer and Chief Strategist and M&A
Officer leading the mergers and acquisitions of the Group. He also serves as a Director on the
Board of several of the Company’s subsidiaries and is the Executive Assistant to the Chairman
and Founder of the Company. He joined Jollibee Foods Corporation in 2005. Mr. Lim has been
a part-time faculty with the Ateneo de Manila University and was previously a Finance
Manager of Procter & Gamble. He graduated with a Bachelor of Science degree in Business
Management, Honors Program, with Latin Honors and with the departmental award from the
Ateneo de Manila University in 2003.
Atty. Amante, born in 1974, Filipino, is the Chief Legal, Ethics, and Compliance Officer of
the Jollibee Group and Assistant Corporate Secretary. She joined the Company in 2007, and
was previously connected with Ayala Land, Inc. and SyCip Salazar Hernandez & Gatmaitan.
She obtained her Bachelor of Arts degree in Psychology, cum laude, from the University of
the Philippines in 1995 and graduated as salutatorian from the University of the Philippines
College of Law in 2000 and placed 7th in the Philippine Bar Examinations of the same year.
Mr. Shin, born in 1967, Canadian, is the Chief Financial Officer and Chief Risk Officer. He
joined the Company in 2022 and was previously the Group Chief Financial Officer for Grobest
Group Holdings Limited. He was also the Regional APAC CFO for 12 years in William Grant
Page 121
& Sons Singapore, Ralph Lauren Asia Pacific, and Bacardi Martini Asia Pacific.
Tony Tan Caktiong, Ernesto Tanmantiong, and William Tan Untiong are brothers. Ang Cho Sit
is the brother-in-law of Tony Tan Caktiong. Antonio Chua Poe Eng is the brother-in-law of
Tony Tan Caktiong, Ernesto Tanmantiong, and William Tan Untiong.
Some of the Company’s directors own franchises or have minority interests in companies which
own and operate franchised stores of the Company. All such franchises and all related party
transactions are subject to contracts which have been entered into in on an arms-length basis
and on terms similar to those granted to other parties.
Neither the Company nor any of its directors or officers were involved in any bankruptcy
petition or have been convicted by final judgment in a criminal proceeding, domestic or foreign,
excluding traffic violations and other minor offenses, or has been by final judgment or have
been subject to any order, judgment or decree or have violated a securities or commodities law
and enjoined from engaging in any business, securities, commodities or banking activities
within the past five (5) years.
2. EXECUTIVE COMPENSATION
Pursuant to Part IV, Paragraph (B) of Annex C of SRC Rule 12, below is a summary
compensation table of the Chief Executive Officer and the four (4) most highly compensated
Corporate Officers of the Company:
All other officers and directors as a group 2022 701,838,454 314,332,778 1,016,171,232
unnamed**
2023 764,299,035 346,910,943 1,111,209,978
*Estimates
** The figures in the table “other officers and directors as a group unnamed” comprises of the Company’s
employees that have the positions of Vice President and above.
Compensation of Directors
Page 122
Standard Arrangements
Regular directors receive a per diem of Php60,000.00 or USD1,200.00 for attendance in a board
meeting, as well as for attendance in Committee meetings. The Company also pays some of its
non-executive directors a quarterly fee of USD12,500.00 or Php625,000.00. Board meetings
are scheduled monthly.
Other Arrangements
The Company has no other arrangements pursuant to which a director is compensated or to be
compensated, directly or indirectly.
Employment Contracts
The Company maintains standard employment contracts with executive officers. The contracts
provide for annual salary increases and bonuses. Other than these employment contracts, there
are no special compensatory plans or arrangements which result from the resignation,
retirement or any other termination of employment of executive officers other than the
Company’s retirement plan which is made applicable to all of the Company’s employees.
Senior Management Stock Option and Incentive Plan [Please see discussion in previous
pages]
Outstanding Warrants
There are no outstanding warrants held by the Chief Executive Officer, other officers and
directors as a group.
Page 123
Title of Name and Address of Name of Beneficial Owner Citizenship No. of Shares Percent
Class Record Owner and Relationship with Record Held
Owner
PCD Nominee
Corporation
G/F Makati Stock Various stockholders Non-
Common 283,025,099 25.27%
Exchange Filipino
6767 Ayala Ave., Makati
City
PCD Nominee
Corporation
Common G/F Makati Stock Various stockholders Filipino 194,197,757 15.19%
Exchange
6767 Ayala Ave., Makati
City
*Inclusive of indirect shares of some shareholders included in the Top 20 Shareholders.
The common shares of the Company owned by its directors are as follows:
Direct 9,354,565
Tony Tan Caktiong Filipino Indirect 646,666 Total: 5.44%
Director, Chairman (lodged through PCD)
Indirect (Honeysea 50,908,863
Corporation)
Direct 8,035,141
Ernesto Tanmantiong Filipino Indirect 857,019
Director, President and Chief (lodged through PCD and Total: 1.31%
Executive Officer spouse)
Indirect – Kingsworth 5,808,198
Corporation
Direct 8,323,388
William Tan Untiong Filipino Indirect 468,001
Director, Corporate Secretary (lodged through PCD) Total: 1.34%
Direct
Antonio Chua Poe Eng Filipino 1
Page 124
Direct 1
C.J. Artemio V. Panganiban Filipino
Total: 0.00%
Director Indirect 54,300
(lodged through PCD)
Direct -
Cesar V. Purisima Filipino
Independent Director Indirect 1 Total: 0.00%
(lodged through PCD)
Direct -
Kevin Goh Singaporean
Independent Director Indirect 1 Total: 0.00%
(lodged through PCD)
Direct -
Ee Rong Chong Singaporean
Independent Director Indirect 1 Total: 0.00%
(lodged through PCD)
A summary of the trades of the directors and corporate officers of the Company is provided
below:
Balance as of Balance as of
December 31, December 31,
Directors 2022 Acquired Disposed 2023
19,402,887
Antonio Chua Poe Eng 6,000,000 112,070 112,000 25,402,957
Director
C.J. Artemio V.
Panganiban 31,301 23,000 - 54,301
Director
Cesar V. Purisima 1 - - 1
Independent Director
Page 125
Kevin Goh 1 - - 1
Independent Director
Ee Rong Chong 1 - - 1
Independent Director
Balance as of Balance as of
December 31, December 31,
Officers 2022 Acquired Disposed 2023
There are no voting trust agreements granting any person the right to exercise the voting rights
of a holder of 5% or more of a class of shares.
There are no arrangements which may result in a change in control of the Company.
5. Corporate Governance
The Company has adopted a Manual of Corporate Governance (“Manual”) which was filed
with and duly approved by the SEC. Under the terms of the Manual, the Company is required
to measure compliance by the Board of Directors and management with the terms of the
Manual. Pursuant to the Manual, the Compliance Officer is required annually to prepare a self-
rating report on the extent of the Company’s compliance with the Manual, explaining reasons
for deviation, if any.
Pursuant to SEC Memorandum Circular No. 9, series of 2014, the Company filed its Amended
Manual of Corporate Governance on July 24, 2014. Pursuant to SEC Memorandum Circular
No. 19, series of 2016, the Company filed its New Manual on Corporate Governance on May
30, 2017. The Company filed its latest Manual on Corporate Governance on March 15, 2023
upon approval of the Board.
On May 30, 2023, the Company filed its IACGR for the year ended December 31, 2023, as
approved by the PSE on May 31, 2023.
6. Sustainability Report
In compliance with SEC MC No. 4, series of 2019 on Sustainability Reporting Guidelines for
Publicly-Listed Companies, the Sustainability Report of the Company for the year ended
December 31, 2023 is found via the following link:
https://bucketeer-3eb16243-2c1c-43d2-be4e-1c2b3664d293.s3.amazonaws.com/2024/03/JFC-2023-
Sustainability-Report.pdf
Page 127
(632) 8634-1111
Telephone Number
17C
Disbursement Report on the Use of Proceeds
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Attached are the letter of the Treasurer and the Certification of SGV & Co., the external auditor of
the corporation.
1 Expenses related to the Offering include: (i) underwriting fees, issuer manager fees, legal and other professional fees,
(ii) taxes and filing fees paid to the BIR, SEC, and PSE, respectively; and (iii) stock transfer service fees and lodgement
fees, and other miscellaneous expenses.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
SIGNATURE:
We submit herewith the quarterly report on the use of proceeds from Jollibee Foods Corporation’s (“JFC”
or the “Corporation”) Follow-on Public Offering (the “Offer”) of 8,000,000 Preferred Shares with an
Oversubscription Option of up to 4,000,000 Preferred Shares, issued into two series designated as Series
A Preferred Shares (“JFCPA”) and Series B Preferred Shares (“JFCPB”), which were listed on October
14, 2021.
Please be informed that the disbursement of the proceeds of the Offer as of December 31, 2022 is as
follows:
We trust that this sufficiently complies with your requirements. Thank you.
Very truly yours,
Jollibee Foods Corporation Doing business under the name and style of Jollibee
10th Floor Jollibee Plaza Building
10 F. Ortigas Jr. Avenue
Ortigas Center, Pasig City
We have performed the procedures which were agreed to by Jollibee Foods Corporation (the
“Company”) and enumerated below with respect to the Quarterly Progress Report for the
three months period ended December 31, 2022 (“Subject Matter”). Our report is solely for
the purpose of assisting the Company in complying with the requirements of Philippine Stock
Exchange (PSE) relating to the application of proceeds from the preferred shares offering,
and this may not be suitable for another purpose.
Restriction on Use
This agreed-upon procedures report (“AUP Report”) is intended solely for the information and
use of the Company and the PSE and is not intended to be and should not be used by anyone
else.
The Company has acknowledged that the agreed-upon procedures are appropriate for the
purpose of the engagement.
The Company is responsible for the Subject Matter on which the agreed-upon procedures are
performed. The sufficiency of these procedures is solely the responsibility of the Company.
Practitioner’s Responsibilities
Our firm applies Philippine Standard on Quality Control (PSQC) 1, Quality Control for Firms
that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related
Services Engagements, and accordingly, maintains a comprehensive system of quality control
including documented policies and procedures regarding compliance with ethical
requirements, professional standards, and applicable legal and regulatory requirements.
We have performed the procedures described below, which were agreed upon with the
Company in the terms of engagement dated January 7, 2022, on the Subject Matter.
1. Obtained from the Company its Quarterly Progress Report for the three months period
ended December 31, 2022, on the Application of the Proceeds from the preferred
shares offering (“Offering’), showing the following information:
We checked the mathematical accuracy of the Quarterly Progress Report for the three
months period ended December 31, 2022, on the Application of the Proceeds from
the Offering. No exceptions were noted.
(632) 8634-1111
Telephone Number
17C
Disbursement Report on the Use of Proceeds
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Attached are the letter of the Treasurer and the Certification of SGV & Co., the external auditor of
the corporation.
1 Expenses related to the Offering include: (i) underwriting fees, issuer manager fees, legal and other professional fees,
(ii) taxes and filing fees paid to the BIR, SEC, and PSE, respectively; and (iii) stock transfer service fees and lodgement
fees, and other miscellaneous expenses.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
SIGNATURE:
We submit herewith the quarterly report on the use of proceeds from Jollibee Foods Corporation’s (“JFC”
or the “Corporation”) Follow-on Public Offering (the “Offer”) of 8,000,000 Preferred Shares with an
Oversubscription Option of up to 4,000,000 Preferred Shares, issued into two series designated as Series
A Preferred Shares (“JFCPA”) and Series B Preferred Shares (“JFCPB”), which were listed on October
14, 2021.
Please be informed that the disbursement of the proceeds of the Offer as of December 31, 2022 is as
follows:
Jollibee Foods Corporation Doing business under the name and style of Jollibee
10th Floor Jollibee Plaza Building
10 F. Ortigas Jr. Avenue
Ortigas Center, Pasig City
We have performed the procedures which were agreed to by Jollibee Foods Corporation (the
“Company”) and enumerated below with respect to the Annual Summary Report for the year
ended December 31, 2022 (“Subject Matter”). Our report is solely for the purpose of
assisting the Company in complying with the requirements of Philippine Stock Exchange (PSE)
relating to the application of proceeds from the preferred shares offering, and this may not be
suitable for another purpose.
Restriction on Use
This agreed-upon procedures report (“AUP Report”) is intended solely for the information and
use of the Company and the PSE and is not intended to be and should not be used by anyone
else.
The Company has acknowledged that the agreed-upon procedures are appropriate for the
purpose of the engagement.
The Company is responsible for the Subject Matter on which the agreed-upon procedures are
performed. The sufficiency of these procedures is solely the responsibility of the Company.
Practitioner’s Responsibilities
Our firm applies Philippine Standard on Quality Control (PSQC) 1, Quality Control for Firms
that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related
Services Engagements, and accordingly, maintains a comprehensive system of quality control
including documented policies and procedures regarding compliance with ethical
requirements, professional standards, and applicable legal and regulatory requirements.
We have performed the procedures described below, which were agreed upon with the
Company in the terms of engagement dated January 7, 2022, on the Subject Matter.
1. Obtained from the Company its Annual Summary Report for the year ended
December 31, 2022, on the Application of the Proceeds from the preferred shares
offering (“Offering’), showing the following information:
We checked the mathematical accuracy of the Annual Summary Report for the year
ended December 31, 2022, on the Application of the Proceeds from the Offering. No
exceptions were noted.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
Cash Dividend
Secondary License Type, If Applicable
STAMPS
(632) 8634-1111
Telephone Number
17C
Cash Dividend Declaration
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The Board of Directors of Jollibee Foods Corporation approved on March 14, 2023, the declaration
of a regular cash dividend of Php8.20525 per share for Series A preferred shares, for a total payout
of Php24,615,750.00. The regular cash dividend will be given to JFC stockholders of record as of
March 29, 2023 (ex-dividend date of March 24, 2023). Payment date is on April 14, 2023.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
Cash Dividend
Secondary License Type, If Applicable
STAMPS
(632) 8634-1111
Telephone Number
17C
Cash Dividend Declaration
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The Board of Directors of Jollibee Foods Corporation approved on March 14, 2023, the declaration
of a regular cash dividend of Php10.60125 per share for Series B preferred shares, for a total
payout of Php95,411,250.00. The regular cash dividend will be given to JFC stockholders of record
as of March 29, 2023 (ex-dividend date of March 24, 2023). Payment date is on April 14, 2023
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
17C
Amendment of By-Laws
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
SECTION FROM TO
Section 12, Article III Section 12. NOMINATION OF DIRECTORS. The Section 12. NOMINATION OF DIRECTORS. The Board
Board shall constitute a Nomination Committee in shall constitute a Nomination Committee in
accordance with Article IV, Section 9 of these By- accordance with Article IV, Section 9 of these By-
Laws. Laws.
xxx xxx
After such nomination process, the Nominations After such nomination process, the Nominations
committee shall prepare a Final List of Candidates committee shall prepare a Final List of Candidates
containing all information about all nominees for containing all information about all nominees for
directors. All nominations for election of Directors directors. All nominations for election of Directors by
by stockholders must be submitted in writing to the stockholders must be submitted in writing to the
Corporate Secretary at least fifteen (15) Business Corporate Secretary at least thirty (30) Business Days
Days prior to the date of the relevant stockholders’ prior to the date of the relevant stockholders’
meeting. meeting.
xxx xxx
Section 1, Article V Section 1. ELECTION AND TERM OF OFFICE. The Section 1. ELECTION AND TERM OF OFFICE. The Board
Board of Directors shall annually, at the of Directors shall annually, at the organizational
organizational meeting, elect a Chairman of the meeting, elect a Chairman of the Board, a President,
Board, a President, a Vice President, a Treasurer a Treasurer and a Secretary may also, from time to
and a Secretary may also, from time to time, create time, create such other additional positions, and/or
such other additional positions, and/or appoint appoint such other officers and agents as it may deem
such other officers and agents as it may deem proper.
proper.
Section 3, Article V Section 3. PRESIDENT. The President, who shall be Section 3. PRESIDENT. The President, who shall be a
a director, shall be the Chief Executive Officer. He director, shall have general charge, supervision, and
shall have general charge, supervision, and control control or the business and affairs of the Corporation,
or the business and affairs of the Corporation, subject, however, to the control of the Board of
subject, however, to the control of the Board of Directors.
Directors.
Section 4, Article V Section 4. VICE PRESIDENT. The Vice President if Removed
qualified shall succeed the President during the
absence, inability to act, or disqualification of the
latter for any cause and shall assist him in all his
duties and Functions. He shall perform such other
duties as may From time to time be delegated to
him by the Board of Directors, or the President. (As
amended on December 20, 1988).
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer &
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
17C
Press Release: JFC Reports Quarter 4 and
Full Year 2022 Financial Results
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Please see attached Press Release re: JFC Reports Quarter 4 and Full Year 2022 Financial Results
JOLLIBEE FOODS CORPORATION
JFC Reports Quarter 4 and Full Year 2022 Financial Results
Sales for the Year Up 40.2%, Operating Income by 58.4%
Metro Manila, Philippines, March 16, 2023 – Jollibee Foods Corporation (PSE: JFC) –
Financial Results for the Fourth Quarter and Year Ended December 31, 2022
Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today reported its
financial results of operations for the fourth quarter and full year ended December 31, 2022, based on its
Audited Consolidated Financial Statements.
Commenting on the JFC Group’s performance for 2022, JFC CEO, Ernesto Tanmantiong stated:
“The JFC Group delivered another year of strong growth in challenging macroeconomic conditions.
System wide sales (SWS) and revenue for the entire year grew by 40.2% and 38.0%, respectively, both at
the high end of our 35% to 40% guidance range for the year.
Our 2022 sales growth was driven by 27.0% same store sales growth (SSS), 6.1% from new stores, the
impact of the Milksha acquisition, and 5.2% contributed by foreign currency translation gain. Dine-in
sales improved significantly driven by increased mobility due to easing of restrictions in markets where
we operate. Off-premise channels, particularly delivery showed continued resilience and we expect
sustained robust growth as we improve further our digital touchpoints.
In 2022, the JFC Group continued its global expansion momentum. We opened 542 stores and grew store
network by +9.2% versus prior year, exceeding our guidance for 2022. This is the highest number of stores
opened in a single year in JFC’s history.
Against a backdrop of high inflation and Covid-related disruptions in China, the JFC Group generated
an operating profit of Php9.9 billion, 58.4% higher compared to 2021 and 6.5% better than our 2018
pre-pandemic operating income level of Php9.3 billion, our guidance for 2022.
Looking ahead, while we expect macroeconomic challenges to persist in 2023, we are confident that the
JFC Group is resilient and well-positioned to drive near-term growth. We have clear priorities on
profitability while we continue to invest strategically to deliver long-term growth and value for our
shareholders.”
Fourth Quarter and Full Year 2022 Financial Highlights
Consolidated revenues grew by 36.8% for the quarter and 38.0% for the entire year. System wide sales, a
measure of all sales to consumers, both from company owned and franchised stores grew by 38.5% in the
4th quarter of 2022 compared to the same period in 2021 and by 40.2% for the entire year of 2022.
Full year SWS in the Philippines grew by 44.6% and International SWS grew by 34.0% led by
SuperFoods (+100.2%), EMEAA (+42.0%), The Coffee Bean and Tea Leaf (CBTL +33.0%) and North
America (+29.9%). China’s performance was flat due to strict Covid-related health measures and
lockdowns.
Full year SSS in the Philippines grew by 40.6% driven by volume or transaction count
(+28.0%). International SSS% grew by 7.7%, led by SuperFoods (+41.3%), CBTL (+15.1%), EMEAA
(+10.2%), and North America (+7.1%). China’s SSS declined by 12.6%. Excluding China, same store
sale of the foreign business grew by 12.1% while the global business grew by 30.2%.
At the end of 2022, the JFC Group operated 6,480 stores worldwide: Philippines (3,285) and International
(3,195).
The JFC Group posted 4th quarter Operating Income of Php1.9 billion, a decrease of 23.7% versus prior
year mainly due to provisions to curtail non-priority brands (Php0.6 billion) and increased A&P spend (as
% of SWS 3.4% versus 2.9% prior year). Excluding one-off items and A&P spend timing difference, the
JFC Group’s operating income is Php3.6 billion, 44.0% higher than the operating income for Q4 2021 of
Php2.5 billion. Gross Profit (+37.6% versus prior year) protection through pricing and cost efficiencies
yielded a +10bps margin rate improvement versus prior year 4th quarter to 18.3%, amidst consistent
inflationary pressures which peaked at 21.5% in the 4th quarter versus 2.8% in prior year.
Other Income for the 4th quarter includes general provisions (Php0.3 billion) and lower write-off of
liabilities resulting from continuous reviews and process improvements (Php0.5 billion), offset by gain
from financial assets at FVTPL (Php0.3 billion.)
Full year consolidated Operating Income grew by 58.4% to Php9.9 billion, with Operating Margins
improving from 4.1% of revenues in 2021 to 4.7% in 2022.
JFC Chief Financial Officer, Mr. Richard Shin gave the following statement:
“The JFC Group demonstrated strong operating leverage in 2022 with store and manufacturing costs
and operating expenses declining by 2.6% and 0.2% of revenues, respectively. Despite industry-wide
headwinds, margins for the 4th quarter remained resilient due to pricing actions and cost management
initiatives. The JFC Group also stepped-up investments in brand building as well as organization
capabilities, particularly for our international business which will help drive profitable growth over
time.”
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year
reached Php31.2 billion, up by 32.2% from Php23.6 billion in the same period last year. Before income
tax, the JFC Group generated Php11.2 billion or 82.1% year-on-year growth. Provision for income tax
significantly increased in 2022 versus 2021 primarily driven by a deferred tax benefit of Php1.4 billion in
2021 compared to an expense of Php334.4 million in the current year. Net income attributable to equity
holders of the Parent Company amounted to Php7.6 billion, an increase of 26.4% compared to Php6.0
billion in 2021. Earnings per share (Basic) grew by 20.7% to Php6.400.
Based on its target for the year, the JFC Group projects full year systemwide sales to be up by 15.0% to
20.0%, with same store sales growth of 7% to 10.0% and store network increase of not less than 5.0%.
Operating income growth will be in the range of 20.0% to 25.0%.
The JFC Group plans to open 550 to 600 owned and franchised stores (gross) in 2023 and expects capital
expenditures to be in the range of Php17.0 to 19.0 billion.
For the third straight year, the JFC Group is named among the World’s Best Employers by Forbes in
2022. The JFC Group is the highest-ranking restaurant company as well as the highest-ranking
Philippine-based company.
The JFC Group was also recognized by the ASEAN Corporate Governance Scorecard Golden Arrow
Awards, which measures a company’s performance in such areas as facilitating the rights and equitable
treatment of shareholders, ensuring transparency through timely disclosure of material information, and
monitoring how the board guides the company strategically and its accountability to its stakeholders.
Corporate Actions
The JFC Board of Directors, in its meeting held on March 14, 2022, approved the following:
- The declaration of a regular cash dividend of Php8.20525 per share for Series A preferred shares, for a
total payout of Php24.6 million. The regular cash dividend will be given to JFC stockholders of record
as of March 29, 2023 (ex-dividend date of March 24, 2023). Payment date is on April 14, 2023.
- The declaration of a regular cash dividend of Php10.60125 per share for Series B preferred shares, for a
total payout of Php95.4 million. The regular cash dividend will be given to JFC stockholders of record
as of March 29, 2023 (ex-dividend date of March 24, 2022). Payment date is on April 14, 2023.
Actual results could differ materially from those contemplated in the relevant forward-looking statement
and the JFC Group gives no assurance that such forward-looking statements will prove to be correct or
that such intentions will not change. This Press Release discloses important factors that could cause actual
results to differ materially from the JFC Group’s expectations. All subsequent written and oral forward-
looking statements attributable to the JFC Group or persons acting on behalf of the JFC Group are
expressly qualified in their entirety by the above cautionary statements.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer &
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
17C
Press Release: JFC Reports Quarter 4 and
Full Year 2022 Financial Results
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Please see attached Press Release re: JFC Reports Quarter 4 and Full Year 2022 Financial Results
JOLLIBEE FOODS CORPORATION
JFC Reports Quarter 4 and Full Year 2022 Financial Results
Sales for the Year Up 40.2%, Operating Income by 58.4%
Metro Manila, Philippines, March 16, 2023 – Jollibee Foods Corporation (PSE: JFC) –
Financial Results for the Fourth Quarter and Year Ended December 31, 2022
Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today reported its
financial results of operations for the fourth quarter and full year ended December 31, 2022, based on its
Audited Consolidated Financial Statements.
Commenting on the JFC Group’s performance for 2022, JFC CEO, Ernesto Tanmantiong stated:
“The JFC Group delivered another year of strong growth in challenging macroeconomic conditions.
System wide sales (SWS) and revenue for the entire year grew by 40.2% and 38.0%, respectively, both at
the high end of our 35% to 40% guidance range for the year.
Our 2022 sales growth was driven by 27.0% same store sales growth (SSS), 6.1% from new stores, the
impact of the Milksha acquisition, and 5.2% contributed by foreign currency translation gain. Dine-in
sales improved significantly driven by increased mobility due to easing of restrictions in markets where
we operate. Off-premise channels, particularly delivery showed continued resilience and we expect
sustained robust growth as we improve further our digital touchpoints.
In 2022, the JFC Group continued its global expansion momentum. We opened 542 stores and grew store
network by +9.2% versus prior year, exceeding our guidance for 2022. This is the highest number of stores
opened in a single year in JFC’s history.
Against a backdrop of high inflation and Covid-related disruptions in China, the JFC Group generated
an operating profit of Php9.9 billion, 58.4% higher compared to 2021 and 6.5% better than our 2018
pre-pandemic operating income level of Php9.3 billion, our guidance for 2022.
Looking ahead, while we expect macroeconomic challenges to persist in 2023, we are confident that the
JFC Group is resilient and well-positioned to drive near-term growth. We have clear priorities on
profitability while we continue to invest strategically to deliver long-term growth and value for our
shareholders.”
Fourth Quarter and Full Year 2022 Financial Highlights
Consolidated revenues grew by 36.8% for the quarter and 38.0% for the entire year. System wide sales, a
measure of all sales to consumers, both from company owned and franchised stores grew by 38.5% in the
4th quarter of 2022 compared to the same period in 2021 and by 40.2% for the entire year of 2022.
Full year SWS in the Philippines grew by 44.6% and International SWS grew by 34.0% led by
SuperFoods (+100.2%), EMEAA (+42.0%), The Coffee Bean and Tea Leaf (CBTL +33.0%) and North
America (+29.9%). China’s performance was flat due to strict Covid-related health measures and
lockdowns.
Full year SSS in the Philippines grew by 40.6% driven by volume or transaction count
(+28.0%). International SSS% grew by 7.7%, led by SuperFoods (+41.3%), CBTL (+15.1%), EMEAA
(+10.2%), and North America (+7.1%). China’s SSS declined by 12.6%. Excluding China, same store
sale of the foreign business grew by 12.1% while the global business grew by 30.2%.
At the end of 2022, the JFC Group operated 6,480 stores worldwide: Philippines (3,285) and International
(3,195).
The JFC Group posted 4th quarter Operating Income of Php1.9 billion, a decrease of 23.7% versus prior
year mainly due to provisions to curtail non-priority brands (Php0.6 billion) and increased A&P spend (as
% of SWS 3.4% versus 2.9% prior year). Excluding one-off items and A&P spend timing difference, the
JFC Group’s operating income is Php3.6 billion, 44.0% higher than the operating income for Q4 2021 of
Php2.5 billion. Gross Profit (+37.6% versus prior year) protection through pricing and cost efficiencies
yielded a +10bps margin rate improvement versus prior year 4th quarter to 18.3%, amidst consistent
inflationary pressures which peaked at 21.5% in the 4th quarter versus 2.8% in prior year.
Other Income for the 4th quarter includes general provisions (Php0.3 billion) and lower write-off of
liabilities resulting from continuous reviews and process improvements (Php0.5 billion), offset by gain
from financial assets at FVTPL (Php0.3 billion.)
Full year consolidated Operating Income grew by 58.4% to Php9.9 billion, with Operating Margins
improving from 4.1% of revenues in 2021 to 4.7% in 2022.
JFC Chief Financial Officer, Mr. Richard Shin gave the following statement:
“The JFC Group demonstrated strong operating leverage in 2022 with store and manufacturing costs
and operating expenses declining by 2.6% and 0.2% of revenues, respectively. Despite industry-wide
headwinds, margins for the 4th quarter remained resilient due to pricing actions and cost management
initiatives. The JFC Group also stepped-up investments in brand building as well as organization
capabilities, particularly for our international business which will help drive profitable growth over
time.”
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year
reached Php31.2 billion, up by 32.2% from Php23.6 billion in the same period last year. Before income
tax, the JFC Group generated Php11.2 billion or 82.1% year-on-year growth. Provision for income tax
significantly increased in 2022 versus 2021 primarily driven by a deferred tax benefit of Php1.4 billion in
2021 compared to an expense of Php334.4 million in the current year. Net income attributable to equity
holders of the Parent Company amounted to Php7.6 billion, an increase of 26.4% compared to Php6.0
billion in 2021. Earnings per share (Basic) grew by 20.7% to Php6.400.
Based on its target for the year, the JFC Group projects full year systemwide sales to be up by 15.0% to
20.0%, with same store sales growth of 7% to 10.0% and store network increase of not less than 5.0%.
Operating income growth will be in the range of 20.0% to 25.0%.
The JFC Group plans to open 550 to 600 owned and franchised stores (gross) in 2023 and expects capital
expenditures to be in the range of Php17.0 to 19.0 billion.
For the third straight year, the JFC Group is named among the World’s Best Employers by Forbes in
2022. The JFC Group is the highest-ranking restaurant company as well as the highest-ranking
Philippine-based company.
The JFC Group was also recognized by the ASEAN Corporate Governance Scorecard Golden Arrow
Awards, which measures a company’s performance in such areas as facilitating the rights and equitable
treatment of shareholders, ensuring transparency through timely disclosure of material information, and
monitoring how the board guides the company strategically and its accountability to its stakeholders.
Corporate Actions
The JFC Board of Directors, in its meeting held on March 14, 2022, approved the following:
- The declaration of a regular cash dividend of Php8.20525 per share for Series A preferred shares, for a
total payout of Php24.6 million. The regular cash dividend will be given to JFC stockholders of record
as of March 29, 2023 (ex-dividend date of March 24, 2023). Payment date is on April 14, 2023.
- The declaration of a regular cash dividend of Php10.60125 per share for Series B preferred shares, for a
total payout of Php95.4 million. The regular cash dividend will be given to JFC stockholders of record
as of March 29, 2023 (ex-dividend date of March 24, 2022). Payment date is on April 14, 2023.
Actual results could differ materially from those contemplated in the relevant forward-looking statement
and the JFC Group gives no assurance that such forward-looking statements will prove to be correct or
that such intentions will not change. This Press Release discloses important factors that could cause actual
results to differ materially from the JFC Group’s expectations. All subsequent written and oral forward-
looking statements attributable to the JFC Group or persons acting on behalf of the JFC Group are
expressly qualified in their entirety by the above cautionary statements.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer &
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
17C
JFC Group’s Unaudited Consolidated Statements of Comprehensive Income for the Fourth
Quarter of 2022 and 2021 and JFC Group’s Store Count for 2022
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Please see attached Press Release re: JFC Group’s Unaudited Consolidated Statements of Comprehensive Income for
the Fourth Quarter of 2022 and 2021 and JFC Group’s Store Count for 2022
JOLLIBEE FOODS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in Thousands except per Share Data)
DIRECT COSTS
Cost of inventories 29,336,751 47.7% 20,383,189 45.3% 8,953,562 43.9%
Store and manufacturing costs 20,969,307 34.1% 16,451,494 36.6% 4,517,813 27.5%
50,306,058 81.7% 36,834,683 81.8% 13,471,375 36.6%
EXPENSES
General and administrative expenses - net 7,598,405 12.3% 4,587,523 10.2% 3,010,882 65.6%
Advertising and promotions 1,758,884 2.9% 1,113,875 2.5% 645,009 57.9%
9,357,289 15.2% 5,701,398 12.7% 3,655,891 64.1%
INCOME BEFORE INCOME TAX 1,703,765 2.8% 2,919,688 6.5% (1,215,923) -41.6%
TOTAL COMPREHENSIVE INCOME (LOSS) (123,852) -0.2% 2,838,681 6.3% (2,962,533) -104.4%
15/03/2023 3:02 pm
Jollibee Foods Corporation - Number of Stores
Dec-21 January - December Ownership Adjustment/ Dec-22
Stores Open Close Net Change Acquisition Stores
Jollibee
Co-owned 435 12 8 4 (3) - 436
Franchised 749 23 7 16 3 - 768
Total 1,184 35 15 20 - - 1,204
Chowking
Co-owned 186 4 5 (1) (2) - 183
Franchised 370 7 2 5 2 377
Total 556 11 7 4 - - 560
Greenwich
Co-owned 145 1 3 (2) (10) - 133
Franchised 124 6 2 4 10 - 138
Total 269 7 5 2 - - 271
Red Ribbon
Co-owned 181 5 8 (3) (1) - 177
Franchised 338 21 10 11 1 - 350
Total 519 26 18 8 - - 527
Mang Inasal
Co-owned 15 - - - - - 15
Franchised 563 5 9 (4) - - 559
Total 578 5 9 (4) - - 574
PHO24 4 - 4 (4) - - -
Panda Express 4 10 - 10 - - 14
Yoshinoya 3 4 - 4 - - 7
Multibrand - 3 - 3 - - 3
Yonghe King
Co-owned 287 44 26 18 - - 305
Franchised 107 20 11 9 - - 116
Total 394 64 37 27 - - 421
Hongzhuangyuan
Co-owned 48 8 5 3 - - 51
Franchised 3 5 1 4 - - 7
Total 51 13 6 7 - - 58
Tim Ho Wan 8 9 - 9 - - 17
North America
Jollibee US 54 7 - 7 - - 61
Jollibee Canada 21 4 - 4 - - 25
Red Ribbon 34 5 - 5 - - 39
Chowking 16 1 - 1 - - 17
Total NA PH brands 125 17 - 17 - - 142
Smashburger
Co-owned 128 7 1 6 1 - 135
Franchised 117 1 9 (8) (1) - 108
Total 245 8 10 (2) - - 243
Other Asia
Jollibee:
Vietnam 150 7 2 5 - - 155
Hongkong 16 5 - 5 - - 21
Brunei 18 1 - 1 - - 19
Singapore 17 2 1 1 - - 18
Co-owned* 11 1 1 - - - 11
Franchised 6 1 - 1 - - 7
Macau 2 2 - 2 - - 4
Malaysia 1 - - - - - 1
West Malaysia - 5 - 5 - - 5
Total - Other Asia 204 22 3 19 - - 223
Jollibee Foods Corporation - Number of Stores
Dec-21 January - December Ownership Adjustment/ Dec-22
Stores Open Close Net Change Acquisition Stores
Middle East
Jollibee
Saudi Arabia 12 1 - 1 - - 13
Qatar 11 1 - 1 - - 12
Kuwait* 8 - 1 (1) - - 7
UAE* 19 2 2 - - - 19
Bahrain 1 - - - - - 1
Oman 1 - - - - - 1
Chowking:
UAE 19 3 2 1 - - 20
Qatar 4 2 1 1 - - 5
Oman 2 - - - - - 2
Kuwait* 5 - - - - - 5
Saudi Arabia 3 1 - 1 - - 4
Total - Middle East 85 10 6 4 - - 89
Europe (Jollibee)
Italy (Milan) 2 - - - - - 2
United Kingdom 9 3 - 3 - - 12
Spain 1 - - - - - 1
Total - Europe 12 3 - 3 - - 15
Oceania
Jollibee Guam 1 - - - - - 1
Total - EMEAA PH Brands 302 35 9 26 - - 328
Coffee Bean
Co-owned 292 36 10 26 - - 318
Franchised 756 67 70 (3) - - 753
Total 1,048 103 80 23 - - 1,071
SuperFoods
Highlands Coffee
Co-owned 411 96 12 84 - - 495
Franchised 72 41 3 38 - - 110
Total 483 137 15 122 - - 605
PHO24
Co-owned 34 - 20 (20) - - 14
Franchised 16 - - - - - 16
Total 50 - 20 (20) - - 30
Milksha
Co-owned - 2 1 1 (1) 18 18
Franchised - 31 16 15 1 246 262
Total - 33 17 16 - 264 280
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer &
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
17C
JFC Enters Strategic Partnership to Accelerate
Jollibee Hong Kong Growth
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Please see attached Press Release re: JFC Enters Strategic Partnership to Accelerate Jollibee Hong Kong Growth
JFC Enters Strategic Partnership to Accelerate
Jollibee Hong Kong Growth
Metro Manila, Philippines, April 5, 2023 – Jollibee Foods Corporation (PSE: JFC)
Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today
announced that it will purchase a majority stake in Meko Holdings Limited (Meko), Jollibee brand’s
master franchisee in Hong Kong. Golden Plate Pte. Ltd., a Singapore-based wholly owned subsidiary of
Jollibee Worldwide Pte. Ltd. which is 100% owned by JFC will acquire shares from the shareholders of
Meko for a total of 60% ownership equivalent to US$16.08 million, subject to adjustments. The
remaining 40% will continue to be owned by the current shareholders of Meko. The Share Purchase
Agreement (SPA) and Shareholders’ Agreement (SHA) are expected to be signed by the parties on
April 5, 2023, subject to fulfillment of agreed closing conditions.
Hong Kong is an important market for Jollibee and an important part of JFC China’s strategy to
elevate the Jollibee brand in a general population or mainstream market. Hong Kong is renowned for its
relationship with a vast variety of food and attracts both a strong base of local consumers and
tourists. Upon completion of this transaction, JFC will have 60% ownership of this once 100%
franchised market.
At the end of February 2023, the JFC Group operated 6,506 stores worldwide: Philippines (3,281)
and International (3,225): 501 in China, 385 in North America, 333 in EMEAA, 640 with SuperFoods
mainly in Vietnam, 1,079 with CBTL and 287 with Milksha. Its largest brands by store outlets worldwide
are Jollibee with 1,594, CBTL 1,079, Chowking 613, Mang Inasal 571 and Highlands Coffee 610.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer &
Corporate Information Officer
COVER SHEET
(632) 8634-1111
Telephone Number
17C
Disbursement Report on the Use of Proceeds
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Attached are the letter of the Treasurer and the Certification of SGV & Co., the external auditor of
the corporation.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
1 Expenses related to the Offering include: (i) underwriting fees, issuer manager fees, legal and other professional fees,
(ii) taxes and filing fees paid to the BIR, SEC, and PSE, respectively; and (iii) stock transfer service fees and lodgement
fees, and other miscellaneous expenses.
SIGNATURE:
We submit herewith the quarterly report on the use of proceeds from Jollibee Foods Corporation’s (“JFC”
or the “Corporation”) Follow-on Public Offering (the “Offer”) of 8,000,000 Preferred Shares with an
Oversubscription Option of up to 4,000,000 Preferred Shares, issued into two series designated as Series
A Preferred Shares (“JFCPA”) and Series B Preferred Shares (“JFCPB”), which were listed on October
14, 2021.
Please be informed that the disbursement of the proceeds of the Offer as of March 31, 2023 is as follows:
We trust that this sufficiently complies with your requirements. Thank you.
Very truly yours,
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
Cash Dividend
Secondary License Type, If Applicable
STAMPS
(632) 8634-1111
Telephone Number
17C
Cash Dividend Declaration
(Form Type)
Cashier LCU
DTU
77487
S.E.C REG. No.
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Jollibee Foods Corporation (JFC) today announced that its Board of Directors approved on April 17,
2023, a cash dividend of Php1.07 per share of common stock for all shareholders of record as of May
3, 2023 (ex-dividend date of April 27, 2023). Payment date will be on May 22, 2023.
The source of the cash dividend payment is the unrestricted retained earnings as of December 31,
2017.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Please see attached Press Release re: JFC Discontinues PHO24 Operations to Focus on New Businesses
The JFC Group of Companies
Metro Manila, Philippines, May 10, 2023 – Jollibee Foods Corporation (PSE: JFC)
Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today disclosed
that the SuperFoods Group which owns Highlands Coffee and PHO24 signed agreements to transfer the
assets of the PHO24 business to East-West Restaurant Concepts (Acquiring Company). PHO24 operates
14 stores (owned) in Vietnam. It also operates a pho factory in Vietnam. The franchise agreement for the
operation of PHO24 stores in the Philippines was also terminated.
PHO24’s operating assets shall be transferred from SuperFoods Group to the Acquiring Company,
which is a wholly-owned subsidiary of Viet Thai International Joint Stock Company (VTI). VTI is the
partner of JFC’s wholly owned subsidiary, JSF Investments Pte. Ltd. (JSF) in the SuperFoods Group.
The JFC Group will concentrate its resources in building and growing its new businesses: Tim Ho
Wan, Yoshinoya and Milksha.
The JFC Group has a joint venture agreement with the Tim Ho Wan Group to open and operate Tim
Ho Wan restaurants in Mainland China. It opened its first Michelin-starred Tim Ho Wan restaurant in
Shanghai’s Changning District in September 2020. Tim Ho Wan is targeting to open 100 restaurants within
the next few years in China, which remains one of the JFC Group’s four pillar markets. It currently has 16
stores in Shanghai and 2 in Beijing.
In October 2021, the JFC Group completed its 50/50 joint venture with Yoshinoya International
Philippines with a plan to open 50 stores in the Philippines in the long-term. Yoshinoya is a beef bowl
business based in Japan and one of the largest and most recognized Japanese restaurant brands globally.
The joint venture, Yoshinoya Jollibee Foods, Inc. is the franchisee of Yoshinoya in the Philippines. It has
7 stores in the country.
In February 2022, the JFC Group, through its wholly owned subsidiary, Jollibee Worldwide Pte. Ltd.
(JWPL) completed the acquisition of 51% stake in Milkshop International Co. Ltd. (Milkshop). Milkshop
owns Milksha, a popular Taiwanese bubble tea brand with 283 outlets in Taiwan (260), Hong Kong (11),
Australia (3), Canada (1), Singapore (7) and United Kingdom (1). The JFC Group, together with
Milkshop’s Founder, plans to grow the Milksha brand globally.
JFC will continue to drive strong sustainable profitable growth of these new businesses, along with
its other businesses in the years ahead.
At the end of January 2023, the JFC Group was operating 6,481 stores worldwide: 3,280 in the
Philippines and 3,201 in international: 520 in China, 383 in North America, 305 in EMEAA, 639 with
SuperFoods mainly in Vietnam, 1,071 for CBTL and 283 for Milksha. Its largest brands by store outlets
worldwide are Jollibee with 1,585, CBTL 1,071, Chowking 613, Highlands Coffee 609, and Mang Inasal
573.
*************************************************************************************
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer &
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
17C
JFC Reports Quarter 1 2023 Financial Results
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Please see attached Press Release re: 2023 1st Quarter Financial Results.
JOLLIBEE FOODS CORPORATION
JFC Reports Quarter 1 2023 Financial Results
Strong Start to the Year
Revenues Rise +28.5%, Operating Income Up +80.9%
Metro Manila, Philippines, May 9, 2023 – Jollibee Foods Corporation (PSE: JFC) – Financial Results
for the First Quarter Ended March 31, 2023
Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today reported its
financial results of operations for the first quarter ended March 31, 2023, based on its Unaudited
Consolidated Financial Statements.
JFC CEO, Ernesto Tanmantiong gave the following statement on JFC’s first quarter performance:
“Our first quarter financial results reflected continued strong momentum, delivering another quarter of
strong topline and operating income growth. System wide sales (SWS) and revenues for the quarter rose
by 31.1% and 28.5%, respectively while operating profit grew by 80.9%.
SWS growth was broad-based with all brands posting strong double-digit growth compared to the first
quarter of 2022. Same store sales grew by 22.4%, with the Philippine business growing by 31.6% and
the international businesses by 8.8%. Our same store sales growth was driven by a 6.3% increase in
average check and a 15.1% growth in volume or transaction count following a softer first quarter 2022
due to the omicron surge. Compared to the first quarter of 2019, JFC’s SWS grew by 44.9%.
We continued to invest in new stores that will help drive sustainable value for our shareholders. We opened
111 stores and grew store network by +4.7% versus prior year. We are on track to achieving our 550-600
new store target for 2023.
We delivered strong operating profit growth despite continued macro challenges. We remain focused on
navigating through these uncertainties and are confident in our ability to deliver another year of strong
growth.”
Quarter 1
Note: The Q1 2022 EBITDA, net income and EPS include Php1.8B one-off gain from land conveyance
and sale of other properties.
Consolidated revenues grew by 28.5% for the quarter. System wide sales, a measure of all sales to
consumers, both from company owned and franchised stores grew by 31.1% in Q1 2023 compared to Q1
2022.
v
First quarter SWS in the Philippines grew by 36.7% and International SWS grew by +23.3% with China
growing by +20.7%, North America +20.2%, EMEAA +20.0%, The Coffee Bean and Tea Leaf (CBTL
+18.7%), SuperFoods +28.5% and Milksha +182.6%.
First quarter same store sales (SSS) in the Philippines grew by 31.6% driven by improvement in volume
or transaction count (+17.3%) and increase in average check (+12.2%). International SSS% grew by
8.8%, led by SuperFoods (+21.6%), China (+12.5%), EMEAA (+8.6%), CBTL (6.7%) and North
America (+6.7%).
At the end of March 2023, JFC operated 6,542 stores worldwide: Philippines (3,281) and International
(3,261).
JFC’s Operating Income for the quarter was Php3.6 billion, an increase of 80.9%, resulting in an
operating income margin improvement of 190 bps (Q1 23: 6.5%; Q1 22: 4.6%). JFC’s Gross Profit
margin expanded from 16.1% in Q1 2022 to 18.2% in Q1 2023 driven by a 280 bps improvement in store
and manufacturing costs, partially offset by an 80 bps increase in cost of inventory due to higher raw
material and supply chain costs.
Other Income for Q1 2023 was Php311.1 million, a decrease of Php1.4 billion or 81.8% compared to Q1
2022 mainly due to a Php1.8 billion gain on land conveyance and sale of other land properties in Q1
2022. As a result, net income attributable to equity holders of the Parent Company declined by 10.6% to
Php2.1 billion. Earnings per share (EPS) likewise declined by 11.8% to Php1.749. Excluding the impact
of the one-off gain in Q1 2022, net income attributable to equity holders of the Parent Company and EPS
grew by 331.9% and 431.2%, respectively.
JFC Chief Financial Officer, Mr. Richard Shin gave the following statement:
“We remain focused on continued improvement in our business fundamentals, which resulted in sustained
gross profit margin expansion and significant growth in underlying profit performance. We are confident
in our ability to execute our strategies and deliver our financial goals for 2023.”
Corporate Actions
The JFC Board of Directors approved on April 17, 2023, the declaration of a regular cash dividend of
Php1.07 per share of common stock for all shareholders of record as of May 3, 2023. Payment date will
be on May 22, 2023.
The foregoing disclosure contains forward-looking statements that are based on certain assumptions of
Management and are subject to risks and opportunities or unforeseen events.
Actual results could differ materially from those contemplated in the relevant forward-looking statement
and the JFC Group gives no assurance that such forward-looking statements will prove to be correct or
that such intentions will not change. This Press Release discloses important factors that could cause actual
results to differ materially from the JFC Group’s expectations. All subsequent written and oral forward-
looking statements attributable to the JFC Group or persons acting on behalf of the JFC Group are
expressly qualified in their entirety by the above cautionary statements.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer &
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
Acquisition or Disposition of Assets
Secondary License Type, If Applicable
STAMPS
(632) 8634-1111
Telephone Number
17C
Acquisition or Disposition of Assets
(Form Type)
Cashier LCU
DTU
77487
S.E.C REG. No.
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Jollibee Foods Corporation (JFC), through the SuperFoods Group which owns Highlands Coffee and PHO24 signed agreements
to transfer the assets of the PHO24 business to East-West Restaurant Concepts (Acquiring Company) which is a wholly-owned
subsidiary of Viet Thai International Joint Stock Company (VTI). VTI is the partner of JFC’s wholly owned subsidiary, JSF
Investments Pte. Ltd. (JSF) in the SuperFoods Group.
Rationale for the transaction including the benefits which are expected to be accrued to the Issuer as a result of the
transaction
The JFC Group will concentrate its resources in building and growing its new businesses: Tim Ho Wan, Yoshinoya and Milksha.
Date 05/10/2023
JFC, through the SuperFoods Group transferred PHO24’s operating assets to Acquiring Company.
Manner
The Parties executed transfer agreements covering operating assets related to Pho24 business.
Description of the assets involved
Less than 1% of the total assets of the company as April 30, 2023.
Appropriate financial and operational due diligence customary to this kind of transaction and acceptable to both parties.
Terms of payment
The transfers are subject to certain closing conditions such as the transfer of material contracts, among others.
None.
Identity of the person(s) from whom the assets were acquired or to whom they were sold
Nature of any material relationship with the Issuer, their directors/ officers, or any of
Name
their affiliates
a wholly-owned subsidiary of Viet Thai International Joint Stock Company (VTI). VTI is the
East-West Restaurant Concepts
partner of JFC’s wholly owned subsidiary, JSF Investments Pte. Ltd. (JSF) in the SuperFoods
Limited Liability Company
Group
Effect(s) on the business, financial condition and operations of the Issuer, if any
The disposition will allow the JFC Group to concentrate its resources in building and growing its new businesses: Tim Ho Wan,
Yoshinoya and Milksha
If the transaction being reported is an acquisition, kindly submit the following additional information:
Source(s) of funds
n/a
If any asset so acquired by the issuer or its subsidiaries constituted plant, equipment or other physical property, state
the nature of the business in which the assets were used by the persons from whom acquired and whether the issuer
intends to continue such use or intends to devote the assets to other purposes, indicating such other purposes
n/a
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
Cash Dividend
Secondary License Type, If Applicable
STAMPS
(632) 8634-1111
Telephone Number
17C
Cash Dividend Declaration
(Form Type)
Cashier LCU
DTU
77487
S.E.C REG. No.
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The Board of Directors of Jollibee Foods Corporation approved on June 16, 2023, the declaration of
a regular cash dividend of Php10.60125 per share for Series B preferred shares, for a total payout
of Php95,411,250.00. The regular cash dividend will be given to JFC stockholders of record as of
July 4, 2023 (ex-dividend date of June 29, 2023). Payment date is on July 14, 2023.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
Cash Dividend
Secondary License Type, If Applicable
STAMPS
(632) 8634-1111
Telephone Number
17C
Cash Dividend Declaration
(Form Type)
Cashier LCU
DTU
77487
S.E.C REG. No.
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The Board of Directors of Jollibee Foods Corporation approved on June 16, 2023, the declaration
of a regular cash dividend of Php8.20525 per share for Series A preferred shares, for a total
payout of Php24,615,750.00. The regular cash dividend will be given to JFC stockholders of
record as of July 4, 2023 (ex-dividend date of June 29, 2023). Payment date is on July 14, 2023
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Marks highest sales growth, operating profit, and store expansion in JFC’s 45-year history
New Record for a Brighter Future. In his report to shareholders, Jollibee Group President and CEO
Ernesto Tanmantiong shared about the company’s record growth in 2022 and reiterated the company’s
commitment to sustainability with Joy for Tomorrow, its sustainability agenda.
MANILA, Philippines. 30 June 2023– In 2022, Jollibee Foods Corporation (Jollibee Group)
attained record-high business results by overcoming challenging macroeconomic headwinds,
proving once again the strength of its business fundamentals and growth plans.
The Jollibee Group achieved a record-high operating profit of Php9.9 billion for FY 2022, which
is 58.4% higher than in 2021 and 6.5% better than its highest pre-pandemic operating income
level of Php9.3 billion.
Speaking during Jollibee Foods Corporation’s Annual Stockholders Meeting, Jollibee Group
President and CEO Ernesto Tanmantiong shared updates on the company’s performance in
2022 and Q1 2023.
“We have accomplished another year of excellent financial performance despite the many
challenges we have had to overcome over the past few years,” shared Tanmantiong. “Through
increased dine-in sales, the resilience of our off-premise channels, continued product innovation
product offerings, and accelerated global expansion, we were able to achieve a record year for
the company. This was made possible by the support of our JFC team, and our customers and
business partners around the world.”
Jollibee Group’s overall sales grew significantly due to the easing of pandemic restrictions in
key markets, continued network expansion, and strong same-store sales. Systemwide sales
(SWS) in 2022 amounted to Php296.8 billion—its highest-ever systemwide sales.
The Jollibee Group opened a total of 542 stores around the world, the majority of which were
opened in international markets. This marks the third consecutive year of accelerated
international store expansion and the highest number of overall store openings in a single year.
“Our success in 2022 has proven that by staying true to our mission of serving great-tasting
food and bringing the joy of eating to everyone, a brighter, more joyful future is ahead of us,”
added Tanmantiong.
The Jollibee Group continued to deliver strong business results in Q1 2023, with an operating
income of Php3.6 billion and SWS of Php78.6 billion, equivalent to an increase of 80.9% and
31.1% versus the previous year, respectively.
The Jollibee Group also opened 111 stores in the first quarter, on target for its full-year
guidance of 550-600 stores for FY 2023.
FOR IMMEDIATE RELEASE
The Jollibee Group likewise reiterated its commitment to its Global Sustainability Agenda, Joy
for Tomorrow, which aims to strengthen the company’s commitment to sustainable business
practices focusing on the pillars of Food, People, and Planet.
“We believe that we can only do well and continue to achieve great success by doing good, and
that includes being more mindful of our impact on the world and helping the communities we
operate in grow with us,” said Tanmantiong.
As part of this agenda, Jollibee Group Foundation (JGF)’s Farmer Entrepreneurship Program
(FEP) has enabled over 700 smallholder farmers to directly deliver their produce to Jollibee
Group. A total of 834,000 kilos of vegetables were delivered by FEP farmer groups in 2022:
adding to the over 9 million kilos of produce delivered since the program begun in 2009.
‘
As the Jollibee Group celebrates its 45th year anniversary this year, Tanmantiong expressed his
gratitude to shareholders, business partners, customers, and the JFC team for contributing to
the company’s success.
“While we acknowledge that many more challenges lie ahead, we are ready to take them on,
learn from them, and emerge stronger just as we have done in the last few years. We stay true
to our focus on growth and success as we work together towards our shared goals and compete
in the global QSR landscape. To our customers, shareholders, business partners, and the JFC
Team around the world: we are grateful for your unwavering support and confidence,” said
Tanmantiong.
###
Jollibee Foods Corporation (JFC, also known as Jollibee Group) is one of the fastest-growing restaurant companies in
the world. Its mission is to serve great-tasting food and bring the joy of eating to everyone through its 16 brands with
over 6,500 stores across 34 countries including the Philippines, United States, Canada, the People's Republic of China,
United Kingdom, Vietnam, United Arab Emirates, and Australia.
The Jollibee Group has eight wholly owned brands (Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal,
Yonghe King, Hong Zhuang Yuan, Smashburger); four franchised brands (Burger King, Panda Express, and
Yoshinoya in the Philippines, and Tim Ho Wan in certain territories in China); 80% ownership of The Coffee Bean and
Tea Leaf; 60% ownership in the SuperFoods Group that owns Highlands Coffee; and 51% ownership of Milksha, a
popular Taiwanese bubble tea brand.
The Jollibee Group, through its subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) owns 90% participating interest in
Titan Dining LP, a private equity fund that owns the Tim Ho Wan brand. The Jollibee Group has a joint venture with
the THW Group to open and operate THW restaurants in Mainland China. It also has a business venture with award-
winning Chef Rick Bayless for Tortazo, a Mexican fast-casual restaurant business in the United States.
The Jollibee Group has launched its global sustainability agenda dubbed Joy for Tomorrow, which aims to strengthen
the company’s commitment to sustainable business practices. The agenda centers on the key pillars of Food, People,
and Planet, and consists of 10 focus areas namely: food safety, food quality, nutrition & transparency, employee
welfare, farmers livelihood, community support, good governance, packaging & recycling, waste reduction, and energy
& water efficiency. Each focus area sets goals and initiatives that contribute and align with the United Nations
Sustainable Development Goals (UN SDGs).
The Jollibee Group was named the Philippines' most admired company by the Asian Wall Street Journal for ten years.
It was also honored as one of Asia's Fab 50 Companies and among the World's Best Employers and World’s Top
FOR IMMEDIATE RELEASE
Female-Friendly Companies by Forbes. The company is also a two-time recipient of Gallup’s Exceptional Workplace
Award, making it the only Philippine-based company to receive the distinction.
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer and
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
STAMPS
(632) 8634-1111
Telephone Number
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
6/30/23, 5:43 PM EDGE Submission System
The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate
disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange,
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6/30/23, 5:43 PM EDGE Submission System
and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to
the Corporate Information Officer of the disclosing party.
Results of the 2023 Organizational Meeting of Jollibee Foods Corporation (the “Company”)
List of elected officers for the ensuing year with their corresponding shareholdings in the Issuer
Shareholdings in the Listed
Name of Person Position/Designation Company Nature of Indirect Ownership
Direct Indirect
Held through Spouse (857,019) and
Ernesto President and Chief Executive
8,035,141 6,665,217 through Kingsworth Corporation
Tanmantiong Officer
(5,808,198)
Held Through PCD (468,001) and
William Tan
Corporate Secretary 8,323,388 6,722,928 through Centregold Corporation
Untiong
(6,254,927)
Assistant Corporate Secretary
Valerie F. Amante - 44,837 Held through PCD
and Compliance Officer
Richard Chong
Chief Financial Officer - - -
Woo Shin
Don Alexander
Treasurer 200,000 184,800 Held through PCD
C. Lim
List of other material resolutions, transactions and corporate actions approved by the Board of Directors
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SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer and
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17-C
STAMPS
(632) 8634-1111
Telephone Number
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
6/30/23, 5:42 PM EDGE Submission System
The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate
disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange,
and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to
the Corporate Information Officer of the disclosing party.
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6/30/23, 5:42 PM EDGE Submission System
Results of the 2023 Annual Stockholders’ Meeting of Jollibee Foods Corporation (the “Company”)
List of elected directors for the ensuing year with their corresponding shareholdings in the Issuer
Shareholdings in the Listed
Name of Person Company Nature of Indirect Ownership
Direct Indirect
Held through PCD (646,666) and through Honeysea
Tony Tan Caktiong 9,354,565 51,555,529
Corporation (50,908,863)
Held through Spouse (857,019) and through Kingsworth
Ernesto Tanmantiong 8,035,141 6,665,217
Corporation (5,808,198)
Held through PCD (468,001) and through Centregold
William Tan Untiong 8,323,388 6,722,928
Corporation (6,254,927)
Ang Cho Sit 11 8,892,237 Held through Venice and Longshore
Antonio Chua Poe Eng 1 25,422,886 Held through Honeyworth Corporation
Ret. C.J Artemio V.
1 54,300 Held through PCD
Panganiban
Cesar V. Purisima - 1 Held through PCD
Kevin Goh - 1 Held through PCD
Ee Rong Chong - 1 Held through PCD
List of other material resolutions, transactions and corporate actions approved by the stockholders
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6/30/23, 5:42 PM EDGE Submission System
1. Minutes of the last annual stockholders’ meeting held on June 24, 2022 was approved.
2. The Audited Financial Statements for the year ended December 31, 2022 and Annual Report were approved.
3. Actions taken by the Board of Directors and Officers since the last annual stockholders’ meeting last June 24, 2022
were approved.
4. Approval of the Amendments to the Second Article of the Amended Articles of Incorporation to remove ownership of
land.
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SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer and
Corporate Information Officer
COVER SHEET
(632) 8634-1111
Telephone Number
17C
Disbursement Report on the Use of Proceeds
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The balance of proceeds also earned Php 60,151,620.19 in interest as of June 30, 2023. The balance of the
proceeds, including interest income earned, from the offering of the company is at Php1,384,396,807.75 as
of June 30, 2023. Attached are the letter of the Treasurer and the Certification of SGV & Co., the external
auditor of the corporation.
1 Expenses related to the Offering include: (i) underwriting fees, issuer manager fees, legal and other professional fees, (ii)
taxes and filing fees paid to the BIR, SEC, and PSE, respectively; and (iii) stock transfer service fees and lodgement fees, and
other miscellaneous expenses.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
SIGNATURE:
We submit herewith the quarterly report on the use of proceeds from Jollibee Foods Corporation’s (“JFC”
or the “Corporation”) Follow-on Public Offering (the “Offer”) of 8,000,000 Preferred Shares with an
Oversubscription Option of up to 4,000,000 Preferred Shares, issued into two series designated as Series
A Preferred Shares (“JFCPA”) and Series B Preferred Shares (“JFCPB”), which were listed on October
14, 2021.
Please be informed that the disbursement of the proceeds of the Offer as of June 30, 2023 is as follows:
We trust that this sufficiently complies with your requirements. Thank you.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
17C
JFC to Bring Tiong Bahru Bakery and
Common Man Coffee Roasters to the Philippines
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Please see attachment re: JFC to Bring Tiong Bahru Bakery and Common Man Coffee Roasters to the Philippines
JOLLIBEE FOODS CORPORATION
Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, and Food
Collective, Pte. Ltd. (FCPL) today announced the establishment of a joint venture company (JVCo) that
will own and operate Tiong Bahru Bakery and Common Man Coffee Roasters in the Philippines.
JFC will own 60% of the business while FCPL will own the remaining 40%. Both companies
have committed to invest up to PHP250.0 million to the JVCo, which shall have its own resources and
personnel with JFC taking the lead in the management and operation of the business. The JVCo will be the
franchisee of both brands in the Philippines.
FCPL is a majority-owned subsidiary of Titan Lifestyle Holdings Pte. Ltd., a wholly owned
subsidiary of Titan Dining LP in which JFC has a 90% participating interest. The company is
incorporated in Singapore and its primary activity is owning and operating lifestyle brands, including
Tiong Bahru Bakery and Common Man Coffee Roasters. There are currently 16 Tiong Bahru Bakery and
5 Common Man Coffee Roasters, across Singapore and Malaysia.
Tiong Bahru Bakery is famous for being the "Home of the Hand-made Croissants" and for its
baked goods and Coffee, with a commitment to producing high quality food and coffee and celebrating
traditional techniques and its local neighborhoods. Common Man Coffee Roasters operates all-day dining
restaurants in Singapore and Malaysia, with an aim to be a Champion for Specialty Coffee and the Best
all-day dining concept in Asia. Common Man Coffee Roasters also does coffee roasting, sale of coffee
products and operates a Coffee Barista Academy.
JFC Chief Executive Officer, Mr. Ernesto Tanmantiong commented: “We are excited to enter this
joint venture with FCPL to own and operate the Tiong Bahru Bakery and Common Man Coffee Roasters
in the Philippines. These brands will be a strong addition to JFC’s foreign franchised brands and will
allow JFC to capture an even greater opportunity and strengthen JFC’s position for further growth in the
Philippine market.”
JFC currently operates three foreign franchised brands in the Philippines, namely Burger King
(127 stores), Panda Express (18 stores), and Yoshinoya (7 stores). These brands contribute ~3% to JFC’s
consolidated system wide sales. Common Man Coffee Roasters will start its operation in the Philippines
in 2023.
At the end of June 2023, the JFC Group operated 6,617 stores worldwide: Philippines (3,287) and
International (3,330): 511 in China, 389 in North America, 340 in EMEA, 673 with Highlands Coffee
mainly in Vietnam, 1,117 with CBTL and 300 with Milksha. Its largest brands by store outlets worldwide
are Jollibee with 1,609, CBTL 1,117, Chowking 613, Mang Inasal 569 and Highlands Coffee 673.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
17C
JFC Announces Strong Second Quarter 2023 Results
System-wide Sales +17%, Operating Profit +31%
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Please see attached Press Release re: 2023 2nd Quarter Financial Results.
JOLLIBEE FOODS CORPORATION
JFC Announces Strong Second Quarter 2023 Results
System-wide Sales +17%, Operating Profit +31%
Metro Manila, Philippines, August 8, 2023 – Jollibee Foods Corporation (PSE: JFC) – Financial
Results for the Second Quarter and First Half Ended June 30, 2023
Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today reported its
financial results of operations for the second quarter and first half ended June 30, 2023, based on its
Unaudited Consolidated Financial Statements.
JFC CEO, Ernesto Tanmantiong gave the following statement on JFC’s second quarter performance:
“I am pleased with our financial results for the second quarter which reflected continued strong sales and
operating profit growth. Compared to the same quarter last year, system-wide sales of the Philippine
business grew by 14.5% while international business grew by 20.9%. Our China business posted the
highest year-on-year incremental international sales driven by consumption recovery from pandemic
disruption last year. Overall system-wide sales for the second quarter grew by 16.9%, with 9% growth in
same store sales, 6.2% from new stores and 1.7% from currency translation. JFC opened 270 stores
during the first half, 230 of which are in the international markets.
As a result of JFC’s continued strong topline growth and prudent management of expenses, JFC
generated an operating profit of Php4.0 billion during the quarter. This represents an increase of 31.0%
compared to the operating profit for the second quarter of 2022 and 11.1% higher compared to the first
quarter of 2023. Our operating profit margin for the quarter proved resilient, improving both on year-on-
year (70 bps) and quarter-on-quarter (10 bps) metrics. JFC’s financial results for the second quarter and
first half affirm our confidence in our full-year guidance for 2023.”
Note: EBITDA, net income, and EPS for the second quarter and first half 2022 include one-off gains from land conveyance and
sale of other properties which amounted to Php1.1Bn and Php2.9Bn, respectively.
System wide sales (SWS), a measure of all sales to consumers, both from company owned and franchised
stores grew by 16.9% in Q2 and 23.3% in the first half of 2023 compared to same periods last year.
Revenues grew in line with system wide sales.
For the quarter, system wide sales of the Philippine business grew by 14.5% while international business
increased by 20.9%, fueled by the China business which posted a growth of 76.9%. SWS of North
America and EMEA Philippine brands grew by 15.1% and 16.1%, respectively. SWS of JFC’s coffee
and tea business increased by 11.0%. The Jollibee brand, which has over 1,600 stores globally and
accounts for 49.0% of JFC’s SWS posted a robust growth of 16.0%.
Global same store sales (SSS) for the quarter increased by 9.0% driven by a 6.5% growth in transaction
count or volume and a 2.4% growth in average check. Performance across regions/ brands was mixed.
The Philippines grew by 11.3% driven by improvement in volume or transaction count (7.1%) and
increase in average check (3.9%). International SSS% grew by 5.0%, led by China (35.3%), EMEA
Philippine brands (5.1%) and North America (2.6%). SSS% of JFC’s coffee and tea business declined by
1.8%. CBTL was -0.4% due to high-base effect, particularly for Singapore and Malaysia where coffee
sales in Q2 2022 rebounded from pre-pandemic levels driven by the reopening of international borders.
Highlands Coffee saw its SSS% fall 7.5% due to weak demand.
JFC’s strong topline performance translated to a record operating income of Php4.0 billion for the quarter,
significantly contributed by the Philippine business. This represents a year-on-year increase of 31.0% and
a margin improvement of 70 bps, from 5.9% of revenues in Q2 2022 to 6.6% in Q2 2023. The results for
the quarter and the first half reflected the impact of inflationary pressures, with cost of inventories
increasing by 40 bps. This was however, offset by an improvement in store and manufacturing costs and
general administrative expenses which fell by 40 bps and 70 bps, respectively.
JFC CFO, Richard Shin commented, “JFC delivered another quarter of solid performance, with strong
double-digit growth in sales and operating income. This demonstrates the strength and resiliency of JFC.
We remain focused on improving our margins through strong revenue generation and operational
efficiencies and will continue to execute on our strategic priorities including accelerating the growth and
improving the profitability of our international business.”
Net income attributable to equity holders of the Parent Company for Q2 2023 and earnings per share
(EPS) declined by 16.6% to Php2.3 billion and 14.1% to Php1.984, respectively. The net income for Q2
2022 includes a one-off gain from land conveyance and sale of land properties. Excluding the impact of
the one-off gain in Q2 2022, net income attributable to equity holders of the Parent Company and EPS
grew by 34.6% and 46.5%, respectively.
At the end of June 2023, JFC’s store network increased by 5.1% compared to a year ago. The JFC Group
operated 6,617 stores worldwide: Philippines (3,287) and International (3,330): 511 in China, 389 in
North America, 340 in EMEA, 673 with Highlands Coffee mainly in Vietnam, 1,117 with CBTL and 300
with Milksha. Its largest brands by store outlets worldwide are Jollibee with 1,609, CBTL 1,117,
Chowking 613, Highlands Coffee 673 and Mang Inasal 569.
Corporate Actions
The JFC Board of Directors approved on June 16, 2023 the following:
- The declaration of a regular cash dividend of Php8.20525 per share for Series A preferred shares, for a
total payout of Php24.6 million. The regular cash dividend will be given to JFC stockholders of record
as of July 4, 2023 (ex-dividend date of June 29, 2023). Payment date is on July 14, 2023.
- The declaration of a regular cash dividend of Php10.60125 per share for Series B preferred shares, for a
total payout of Php95.4 million. The regular cash dividend will be given to JFC stockholders of record
as of July 4, 2023 (ex-dividend date of June 29, 2023). Payment date is on July 14, 2023.
Forward-Looking Statements Disclaimer
The foregoing disclosure contains forward-looking statements that are based on certain assumptions of
Management and are subject to risks and opportunities or unforeseen events.
Actual results could differ materially from those contemplated in the relevant forward-looking statement
and the JFC Group gives no assurance that such forward-looking statements will prove to be correct or
that such intentions will not change. This Press Release discloses important factors that could cause actual
results to differ materially from the JFC Group’s expectations. All subsequent written and oral forward-
looking statements attributable to the JFC Group or persons acting on behalf of the JFC Group are
expressly qualified in their entirety by the above cautionary statements.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer &
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
17C
JFC Enters Strategic Partnership to Accelerate
Jollibee Hong Kong Growth
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Please see attached Press Release re: JFC Enters Strategic Partnership to Accelerate Jollibee Hong Kong Growth
9/1/23, 9:10 AM Material Information/Transactions
C02550-2023
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9/1/23, 9:10 AM Material Information/Transactions
The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate
disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange,
and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to
the Corporate Information Officer of the disclosing party.
Metro Manila, Philippines, April 5, 2023 – Jollibee Foods Corporation (PSE: JFC)
Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today announced that it will purchase
a majority stake in Meko Holdings Limited (Meko), Jollibee brand’s master franchisee in Hong Kong. Golden Plate Pte.
Ltd., a Singapore-based wholly owned subsidiary of Jollibee Worldwide Pte. Ltd. which is 100% owned by JFC will
acquire shares from the shareholders of Meko for a total of 60% ownership equivalent to US$16.08 million, subject to
adjustments. The remaining 40% will continue to be owned by the current shareholders of Meko. The Share Purchase
Agreement (SPA) and Shareholders’ Agreement (SHA) are expected to be signed by the parties on
April 5, 2023, subject to fulfillment of agreed closing conditions.
Hong Kong is an important market for Jollibee and an important part of JFC China’s strategy to elevate the Jollibee brand
in a general population or mainstream market. Hong Kong is renowned for its relationship with a vast variety of food and
attracts both a strong base of local consumers and
tourists. Upon completion of this transaction, JFC will have 60% ownership of this once 100% franchised market.
At the end of February 2023, the JFC Group operated 6,506 stores worldwide: Philippines (3,281) and International
(3,225): 501 in China, 385 in North America, 333 in EMEAA, 640 with SuperFoods mainly in Vietnam, 1,079 with CBTL
and 287 with Milksha. Its largest brands by store outlets worldwide are Jollibee with 1,594, CBTL 1,079, Chowking 613,
Mang Inasal 571 and Highlands Coffee 610.
https://edge.pse.com.ph/openDiscViewer.do?edge_no=40f23ba69fa9a09e9e4dc6f6c9b65995 2/3
9/1/23, 9:10 AM Material Information/Transactions
https://edge.pse.com.ph/openDiscViewer.do?edge_no=40f23ba69fa9a09e9e4dc6f6c9b65995 3/3
JFC Enters Strategic Partnership to Accelerate
Jollibee Hong Kong Growth
Metro Manila, Philippines, April 5, 2023 – Jollibee Foods Corporation (PSE: JFC)
Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today
announced that it will purchase a majority stake in Meko Holdings Limited (Meko), Jollibee brand’s
master franchisee in Hong Kong. Golden Plate Pte. Ltd., a Singapore-based wholly owned subsidiary of
Jollibee Worldwide Pte. Ltd. which is 100% owned by JFC will acquire shares from the shareholders of
Meko for a total of 60% ownership equivalent to US$16.08 million, subject to adjustments. The
remaining 40% will continue to be owned by the current shareholders of Meko. The Share Purchase
Agreement (SPA) and Shareholders’ Agreement (SHA) are expected to be signed by the parties on
April 5, 2023, subject to fulfillment of agreed closing conditions.
Hong Kong is an important market for Jollibee and an important part of JFC China’s strategy to
elevate the Jollibee brand in a general population or mainstream market. Hong Kong is renowned for its
relationship with a vast variety of food and attracts both a strong base of local consumers and
tourists. Upon completion of this transaction, JFC will have 60% ownership of this once 100%
franchised market.
At the end of February 2023, the JFC Group operated 6,506 stores worldwide: Philippines (3,281)
and International (3,225): 501 in China, 385 in North America, 333 in EMEAA, 640 with SuperFoods
mainly in Vietnam, 1,079 with CBTL and 287 with Milksha. Its largest brands by store outlets worldwide
are Jollibee with 1,594, CBTL 1,079, Chowking 613, Mang Inasal 571 and Highlands Coffee 610.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer &
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
Cash Dividend
Secondary License Type, If Applicable
STAMPS
(632) 8634-1111
Telephone Number
17C
Cash Dividend Declaration
(Form Type)
Cashier LCU
DTU
77487
S.E.C REG. No.
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The Board of Directors of Jollibee Foods Corporation approved on September 19, 2023, the
declaration of a regular cash dividend of Php10.60125 per share for Series B preferred shares, for a
total payout of Php95,411,250.00. The regular cash dividend will be given to JFC stockholders
of record as of October 4, 2023 (ex-dividend date of October 3, 2023). Payment date is
on October 16, 2023.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
Cash Dividend
Secondary License Type, If Applicable
STAMPS
(632) 8634-1111
Telephone Number
17C
Cash Dividend Declaration
(Form Type)
Cashier LCU
DTU
77487
S.E.C REG. No.
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The Board of Directors of Jollibee Foods Corporation approved on September 19, 2023, the
declaration of a regular cash dividend of Php8.20525 per share for Series A preferred shares, for a
total payout of Php24,615,750.00. The regular cash dividend will be given to JFC
stockholders of record as of October 4, 2023 (ex-dividend date of October 3, 2023).
Payment date is on October 16, 2023.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
(632) 8634-1111
Telephone Number
17C
Disbursement Report on the Use of Proceeds
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The balance of proceeds also earned Php76,706,910.49 in interest as of September 30, 2023. The
balance of the proceeds, including interest income earned, from the offering of the company is at
Php1,276,201,643.43 as of September 30, 2023. Attached are the letter of the Treasurer and the
Certification of SGV & Co., the external auditor of the corporation.
1 Expenses related to the Offering include: (i) underwriting fees, issuer manager fees, legal and other professional fees,
(ii) taxes and filing fees paid to the BIR, SEC, and PSE, respectively; and (iii) stock transfer service fees and lodgement
fees, and other miscellaneous expenses.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
SIGNATURE:
We submit herewith the quarterly report on the use of proceeds from Jollibee Foods Corporation’s (“JFC”
or the “Corporation”) Follow-on Public Offering (the “Offer”) of 8,000,000 Preferred Shares with an
Oversubscription Option of up to 4,000,000 Preferred Shares, issued into two series designated as Series
A Preferred Shares (“JFCPA”) and Series B Preferred Shares (“JFCPB”), which were listed on October
14, 2021.
Please be informed that the disbursement of the proceeds of the Offer as of September 30, 2023 is as
follows:
We trust that this sufficiently complies with your requirements. Thank you.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
Cash Dividend
Secondary License Type, If Applicable
STAMPS
(632) 8634-1111
Telephone Number
17C
Cash Dividend Declaration
(Form Type)
Cashier LCU
DTU
77487
S.E.C REG. No.
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The board of directors of Jollibee Foods Corporation approved in its meeting held on
November 10, 2023 the declaration of a regular cash dividend of Php1.23 per share of
common stock for all shareholders of record as of November 24, 2023 (ex-dividend date of
November 23, 2023). This will bring JFC’s regular cash dividend to a total of Php2.30
per share in 2023, the same amount declared and paid in 2022. Payment date will be on
December 11, 2023.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
(Form Type)
________________________________
Amendment Designation (If applicable)
___________________________________
(Secondary License Type and File Number)
___________________ ___________________
Cashier LCU
___________________
DTU
77487
S.E.C REG. No.
___________________ ___________________
Central Receiving Unit File Number
___________________
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
7. 10/F JOLLIBEE PLAZA BUILDING, 10 F. ORTIGAS JR. AVENUE, ORTIGAS CENTER, PASIG CITY
Address of registrant’s principal office
1605
Postal Code
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
Please see attached Press Release re: 2023 3rd Quarter Financial Results.
JOLLIBEE FOODS CORPORATION
JFC Announces Third Quarter 2023 Results
Delivers Record-high Operating Profit of Php4.3 Billion
Metro Manila, Philippines, November 10, 2023 – Jollibee Foods Corporation (PSE: JFC) – Financial
Results for the Third Quarter and Nine Months Ended September 30, 2023
Jollibee Foods Corporation (JFC), one of the largest Asian food service companies, today reported its
financial results of operations for the third quarter and nine months ended September 30, 2023, based on
its Unaudited Consolidated Financial Statements.
JFC CEO, Ernesto Tanmantiong gave the following statement on JFC’s third quarter performance:
“We delivered another strong performance in the third quarter with a record-high operating profit of
Php4.3 billion, increasing by 42.8% year-on-year from a revenue growth of 11.0%. This is JFC’s third
consecutive quarter of record-high operating income. Both our Philippine and international businesses
achieved strong operating profit growth reflecting the strength and resilience of our brands in an
environment that remains volatile and challenging.
Overall system-wide sales for the quarter grew by 11.8% driven by the robust performance of the
Philippine business which posted a 16.5% system-wide sales growth and a 13.0% same store sales
growth. The international business saw a growth of 5.4% in system wide sales and 2.6% in same store
sales. Our Jollibee brand, which has over 1,600 stores globally and accounts for 49.0% of JFC’s system-
wide sales grew by 16.7% in the third quarter. JFC opened 429 stores, of which 365 stores are in the
international markets.
While we anticipate continued positive momentum in our business performance, we are maintaining our
2023 growth guidance for revenue (+10% to +15%), same store sales (+7% to +10%), operating income
(+20% to +25%) and store network (+5%) as we recognize the ongoing macroeconomic and geopolitical
volatility.”
Note: EBITDA, net income, and EPS for the third quarter and YTD September 2022 include one-off gains from land conveyance
and sale of other properties which amounted to Php2.4Bn and Php5.3Bn, respectively.
System-wide sales (SWS), a measure of all sales to consumers, both from company owned and franchised
stores grew by 11.8% in Q3 and 19.1% in YTD September 2023 compared to same periods last year.
Revenues grew in line with system wide sales.
For the quarter, system-wide sales of the Philippine business grew by 16.5%, with most brands growing
by high double-digits. The international business increased by 5.4% with the China business growing by
2.6%, North America 7.5%, and EMEA Philippine brands 11.8%. SWS of JFC’s coffee and tea business
increased by 2.7%.
Global same store sales (SSS) for the quarter increased by 8.8% driven by a 4.9% growth in transaction
count or volume and a 3.7% growth in average check. Performance across regions/ brands was mixed.
The Philippines grew by 13.0% driven by improvement in volume or transaction count (7.7%) and
increase in average check (4.9%). International SSS% grew by 2.6%, led by Milksha (12.3%), EMEA
Philippine brands (6.3%), North America (6.0%) and China (1.9%). SSS% of Highlands Coffee and
CBTL fell 12.3% and 1.5%, respectively due to weak macros in Vietnam and increased competition in the
coffee space.
JFC’s strong topline performance and robust gross profit margin of 18.3% (120 bps vs same period last
year) produced a record operating income of Php4.3 billion for the quarter and a 7.0% operating income
margin. This represents a year-on-year increase of 42.8% and a margin improvement of 160 bps. JFC’s
operating income for YTD September stood at Php11.9 billion, +47.7% versus same period last year.
Net income attributable to equity holder of the Parent Company (NIAT) for the quarter increased by
13.6% to Php2.4 billion, despite a higher base as last year’s third quarter net income included a Php2.4
billion gain from land conveyance and disposals). For YTD September 2023, NIAT amounted to Php6.8
billion, 5.7% lower compared to the Php7.2 billion NIAT for YTD September 2022 which included a
Php5.3 billion gain from land conveyance and disposals. Basic Earnings per share (EPS) grew by 7.8% to
Php2.081 for the quarter and declined by 6.5% to Php5.815 for YTD September 2023.
JFC CFO, Richard Shin commented, “Our strong results for the quarter demonstrated JFC’s continued
financial resilience highlighted by our record-high quarterly system-wide sales and operating income.
While the external environment has not improved, we remain confident in our ability to deliver
sustainable growth as we continue to focus on what we can control, invest in line with long-term strategy,
prudently manage our expenses, and drive efficiencies in our organization.”
At the end of September 2023, JFC’s store network increased by 5.8% compared to a year ago. JFC
operated 6,720 stores worldwide: Philippines (3,295) and International (3,425): 538 in China, 388 in
North America, 330 in EMEA, 725 with Highlands Coffee mainly in Vietnam, 1,132 with CBTL and 312
with Milksha. Its largest brands by store outlets worldwide are Jollibee with 1,624, CBTL 1,132,
Highlands Coffee 725, Chowking 612, and Mang Inasal 569.
Corporate Action
The JFC Board of Directors approved on November 10, 2023 the declaration of a regular cash dividend of
Php1.23 per share of common stock for all shareholders of record as of November 24, 2023 (ex-dividend
date of November 23, 2023). This will bring JFC’s regular cash dividend to a total of Php2.30 per share in
2023, the same amount declared and paid in 2022. Payment date will be on December 11, 2023.
Forward-Looking Statements Disclaimer
The foregoing disclosure contains forward-looking statements that are based on certain assumptions of
Management and are subject to risks and opportunities or unforeseen events.
Actual results could differ materially from those contemplated in the relevant forward-looking statement
and the JFC Group gives no assurance that such forward-looking statements will prove to be correct or
that such intentions will not change. This Press Release discloses important factors that could cause actual
results to differ materially from the JFC Group’s expectations. All subsequent written and oral forward-
looking statements attributable to the JFC Group or persons acting on behalf of the JFC Group are
expressly qualified in their entirety by the above cautionary statements.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
RICHARD SHIN
Chief Financial Officer &
Corporate Information Officer
COVER SHEET
7 7 4 8 7
S.E.C. Registration Number
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
STAMPS
(632) 8634-1111
Telephone Number
17C
Cash Dividend Declaration
(Form Type)
Cashier LCU
DTU
77487
S.E.C REG. No.
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The Board of Directors of Jollibee Foods Corporation approved on December 15, 2023, the
declaration of a regular cash dividend of Php8.20525 per share for Series A preferred shares, for a
total payout of Php24,615,750.00. The regular cash dividend will be given to JFC stockholders of
record as of January 3, 2024 (ex-dividend date of January 2, 2024). Payment date is on January
15, 2024.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
J O L L I B E E F O O D S C O R P O R A T I O N
D O I N G B U S I N E S S U N D E R T H E N A M E
A N D S T Y L E O F J O L L I B E E
10/F J O L L I B E E P L A Z A B U I L D I N G
10 F. O R T I G A S J R . A V E N U E
O R T I G A S C E N T E R , P A S I G C I T Y
(Business Address: No. Street City / Town / Province)
17C
Cash Dividend Declaration
Secondary License Type, If Applicable
STAMPS
(632) 8634-1111
Telephone Number
17C
Cash Dividend Declaration
(Form Type)
Cashier LCU
DTU
77487
S.E.C REG. No.
Document I.D.
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT PURSUANT TO SECTION 17 OF THE
SECURITIES REGULATIONS CODE (SRC) AND SRC RULE 17 THEREUNDER
5. PHILIPPINES
Province, country or other jurisdiction of incorporation or organization
8. (632) 8634-1111
Registrant’s telephone number, including area code
9. N/A
Former name, former address and former fiscal year, if changed since last report
The Board of Directors of Jollibee Foods Corporation approved on December 15, 2023, the
declaration of a regular cash dividend of Php10.60125 per share for Series B preferred shares, for a
total payout of Php95,411,250.00. The regular cash dividend will be given to JFC stockholders of
record as of January 3, 2024 (ex-dividend date of January 2, 2024). Payment date is on January
15, 2024.
SIGNATURE
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
Company Information
____________________________________________________________________________
Document Information
____________________________________________________________________________
____________________________________________________________________________
7 7 4 8 7
COMPANY NAME
J O L L I B E E F O O D S C O R P O R A T I O N D O I
N G B U S I N E S S U N D E R T H E N A M E A N D
S T Y L E O F J O L L I B E E A N D S U B S I D I
A R I E S
1 0 / F J o l l i b e e P l a z a B u i l d i n g ,
1 0 F . O r t i g a s J r . A v e n u e , O r t i
g a s C e n t e r , P a s i g C i t y
Form Type Department requiring the report Secondary License Type, If Applicable
A A F S S E C N / A
COMPANY INFORMATION
Company’s Email Address Company’s Telephone Number Mobile Number
No. of Stockholders Annual Meeting (Month / Day) Fiscal Year (Month / Day)
10/F Jollibee Plaza Building, 10 F. Ortigas Jr. Avenue, Ortigas Center, Pasig City
NOTE 1: In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission within
thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated.
2: All Boxes must be properly and completely filled-up. Failure to do so shall cause the delay in updating the corporation’s records with the Commission
and/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from liability for its deficiencies.
*SGVFS187686*
SyCip Gorres Velayo & Co. Tel: (632) 8891 0307
6760 Ayala Avenue Fax: (632) 8819 0872
1226 Makati City ey.com/ph
Philippines
Opinion
We have audited the consolidated financial statements of Jollibee Foods Corporation Doing business
under the name and style of Jollibee (the Parent Company) and its subsidiaries (the Jollibee Group),
which comprise the consolidated statements of financial position as at December 31, 2023 and 2022, and
the consolidated statements of comprehensive income, consolidated statements of changes in equity and
consolidated statements of cash flows for each of the three years in the period ended December 31, 2023,
and notes to the consolidated financial statements, including material accounting policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the financial position of the Jollibee Group as at December 31, 2023 and 2022, and its consolidated
financial performance and its consolidated cash flows for each of the three years in the period ended
December 31, 2023 in accordance with Philippine Financial Reporting Standards (PFRSs).
We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the Jollibee Group
in accordance with the Code of Ethics for Professional Accountants in the Philippines (Code of Ethics)
together with the ethical requirements that are relevant to our audit of the consolidated financial
statements in the Philippines, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. For each matter below, our
description of how our audit addressed the matter is provided in that context.
*SGVFS187686*
A member firm of Ernst & Young Global Limited
-2-
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our assessment of
the risks of material misstatement of the consolidated financial statements. The results of our audit
procedures, including the procedures performed to address the matters below, provide the basis for our
audit opinion on the accompanying consolidated financial statements.
Under Philippine Accounting Standard (PAS) 36, Impairment of Assets, the Jollibee Group is required to
annually test the amount of goodwill and trademark with indefinite life for impairment. This annual
impairment test was significant to our audit because the balance of goodwill and trademark with
indefinite life amounting to =
P16,251.9 million and = P35,445.8 million, respectively, as at December 31,
2023, are material to the consolidated financial statements.
In addition, management’s assessment process is complex and highly judgmental and is based on
assumptions, specifically discount rate, which is applied to the cash flows, net sales forecasts, long-term
revenue growth rate, and earnings before interest, taxes, depreciation and amortization (EBITDA) which
are affected by expected future market or economic conditions, particularly those in the Philippines, the
People’s Republic of China, Vietnam and the United States of America.
The Jollibee Group’s disclosures about goodwill and trademarks with indefinite life are included in
Note 14.
Audit Response
We involved our internal specialist in evaluating the methodologies and the assumptions used in
determining the recoverable amounts of the cash-generating units (CGUs) for goodwill and the
trademarks with indefinite life. These assumptions include the discount rate, net sales forecasts, long-
term revenue growth rate, and EBITDA. We compared the key assumptions used, such as forecasted
long-term revenue growth rate, forecasted net sales and EBITDA against the historical data of the CGUs
and inquired from management and operations personnel about the plans to support the forecasts.
Furthermore, we tested the parameters used in the determination of discount rate against market data.
We also reviewed the Jollibee Group’s disclosures about the assumptions to which the outcome of the
impairment test is most sensitive, specifically those that have the most significant effect on the
determination of the recoverable amount of goodwill and trademarks with indefinite life.
The Parent Company and certain subsidiaries (foreign and local) have recognized deferred tax assets
amounting to =P20,458.3 million as at December 31, 2023. Of that amount, around 23% or
P
=4,780.9 million relates to net operating loss carryover and excess minimum corporate income tax over
regular corporate income tax. Management evaluated the recognition of these deferred tax assets based
on the forecasted taxable income taking into account the period in which the deductible temporary
differences can be claimed in the Philippines, the United States of America and the People’s Republic of
China. The recognition of deferred tax assets is significant to our audit because the assessment process is
complex and judgmental, and is based on assumptions that are affected by expected future market or
economic conditions and the expected future performance as well as management’s plans and strategies
of the relevant taxable entities.
*SGVFS187686*
A member firm of Ernst & Young Global Limited
-3-
The disclosures in relation to deferred income taxes are included in Note 24 to the consolidated financial
statements.
Audit Response
We updated our understanding of the Parent Company and its subsidiaries’ deferred income tax
calculation process and, together with our internal specialist, the applicable tax rules and regulations.
We evaluated management’s assessment on the availability of future taxable income with reference to
financial forecasts and tax strategies. We evaluated management’s forecast by comparing the forecasts of
future taxable income against approved budgets, historical performance of the relevant entities like past
revenue growth rates and with relevant external market information such as inflation. We also assessed
the timing of the reversal of future taxable and deductible temporary differences.
Other Information
Management is responsible for the other information. The other information comprises the information
included in the SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and Annual Report
for the year ended December 31, 2023, but does not include the consolidated financial statements and our
auditor’s report thereon. The SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and
Annual Report for the year ended December 31, 2023 are expected to be made available to us after the
date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we will not
express any form of assurance conclusion thereon.
In connection with our audits of the consolidated financial statements, our responsibility is to read the
other information identified above when it becomes available and, in doing so, consider whether the other
information is materially inconsistent with the consolidated financial statements or our knowledge
obtained in the audits, or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with PFRSs, and for such internal control as management determines is
necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
Jollibee Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate
the Jollibee Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Jollibee Group’s financial reporting
process.
*SGVFS187686*
A member firm of Ernst & Young Global Limited
-4-
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Jollibee Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Jollibee Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the consolidated financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Jollibee Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Jollibee Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
*SGVFS187686*
A member firm of Ernst & Young Global Limited
-5-
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is
Mariecris N. Barbaso.
Mariecris N. Barbaso
Partner
CPA Certificate No. 97101
Tax Identification No. 202-065-716
BOA/PRC Reg. No. 0001, August 25, 2021, valid until April 15, 2024
BIR Accreditation No. 08-001998-108-2023, September 12, 2023, valid until September 11, 2026
PTR No. 10079905, January 5, 2024, Makati City
March 8, 2024
*SGVFS187686*
A member firm of Ernst & Young Global Limited
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Amounts in Thousand Pesos)
December 31
2023 2022
ASSETS
Current Assets
Cash and cash equivalents (Notes 6, 31 and 32) P
=33,232,488 P
=28,869,279
Short-term investments (Notes 6, 31 and 32) 624,800 619,168
Financial assets at fair value through profit or loss (Notes 10, 31 and 32) 7,853,800 8,250,991
Receivables and contract assets (Notes 7, 31 and 32) 8,567,416 9,627,435
Inventories (Note 8) 12,340,206 17,297,648
Other current assets (Note 9) 11,556,492 10,196,320
Total Current Assets 74,175,202 74,860,841
Noncurrent Assets
Financial assets at fair value through profit or loss (Notes 10, 31 and 32) 316,182 27,502
Interests in and advances to joint ventures, co-venturers and associates (Note 11) 21,092,982 18,111,291
Property, plant and equipment (Note 12) 39,825,319 36,485,718
Investment properties (Note 13) 101,585 –
Right-of-use assets (Note 29) 44,966,055 42,078,013
Trademarks, goodwill and other intangible assets (Note 14) 51,926,645 51,715,547
Finance lease receivables (Notes 29, 31 and 32) 811 41,619
Deferred tax assets - net (Note 24) 7,424,064 6,026,842
Other noncurrent assets (Notes 15, 31 and 32) 4,345,371 4,055,332
Total Noncurrent Assets 169,999,014 158,541,864
P
=244,174,216 P
=233,402,705
(Forward)
*SGVFS187686*
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December 31
2023 2022
Total Liabilities (Brought Forward) P
=157,917,561 P
=152,487,672
Equity Attributable to Equity Holders of the Parent Company (Note 31)
Capital stock:
Preferred (Note 19) 12,000,000 12,000,000
Common - net of subscription receivable (Note 19) 1,132,331 1,131,217
Additional paid-in capital (Note 19) 12,662,905 12,091,767
Other reserve (Note 11) 1,877,400 1,877,400
Cumulative translation adjustments of foreign subsidiaries and interests in joint
ventures and associates (Note 11) 1,405,390 1,699,034
Remeasurement loss on net defined benefit plan - net of tax (Note 25) (990,150) (693,347)
Excess of cost over the carrying value of non-controlling interests acquired
(Notes 11 and 19) (2,026,340) (2,026,340)
Retained earnings (Note 19):
Appropriated for future expansion 18,700,000 18,700,000
Unappropriated 23,341,856 17,621,540
68,103,392 62,401,271
Less cost of common stock held in treasury (Note 19) 180,511 180,511
67,922,881 62,220,760
Senior perpetual securities (Notes 10 and 19) 20,264,804 20,264,804
Non-controlling interests (Note 11) (1,931,030) (1,570,531)
Total Equity 86,256,655 80,915,033
P
=244,174,216 P
=233,402,705
*SGVFS187686*
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in Thousand Pesos, Except Per Share Data)
*SGVFS187686*
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 and 2021
(Amounts in Thousand Pesos)
Equity Attributable to Equity Holders of the Parent Company (Note 31)
Cumulative
Translation Excess of Cost
Adjustments of Over the
Foreign Remeasurement Carrying
Capital Stock - Subsidiaries Gain (Loss) on Comprehensive Value of Cost of
Net of and Interests in Net Defined Income (Loss) Non-controlling Retained Earnings (Note 19) Common Senior Non-
Preferred Subscription Additional Other Joint Ventures Benefit Plan - on Derivative Interests Appropriated Stock Held in Perpetual controlling
Stock Receivable Paid-in Capital Reserve and Associates Net of tax Liability Acquired for Future Treasury Securities Interests
(Note 19) (Note 19) (Note 19) (Note 11) (Note 11) (Note 25) (Note 18) (Note 19) Expansion Unappropriated (Note 19) Total (Note 19) (Note 11) Total Equity
Balance at January 1, 2023 =12,000,000
P =1,131,217
P =12,091,767 =
P P1,877,400 =1,699,034
P (P
= 693,347) =–
P (P
= 2,026,340) =18,700,000
P =17,621,540
P (P
= 180,511) =62,220,760
P =20,264,804
P (P
= 1,570,531) =80,915,033
P
Net income – – – – – – – – – 8,766,116 – 8,766,116 – 219,337 8,985,453
Other comprehensive income (loss) – – – (293,644) (296,803) – – – – – (590,447) – 9,137 (581,310)
Total comprehensive income (loss) – – – – (293,644) (296,803) – – – 8,766,116 – 8,175,669 – 228,474 8,404,143
Movements in other equity accounts:
Issuances and subscriptions to common stock
(Note 19) – 1,114 207,927 – – – – – – – – 209,041 – – 209,041
Cost of stock options granted - net of tax (Note 26) – – 363,211 – – – – – – – – 363,211 – – 363,211
Cash dividends (Note 19) – – – – – – – – – (3,045,800) – (3,045,800) – – (3,045,800)
Cash dividend received by a non-controlling
interest – – – – – – – – – – – – – (33,168) (33,168)
Acquisition of a subsidiary – – – – – – – – – – – – – 203,261 203,261
Distribution on senior perpetual securities
(Note 19) – – – – – – – – – – – – – (859,066) (859,066)
Additional investment during the year (Note 11) – – – – – – – – – – – – – 100,000 100,000
– 1,114 571,138 – – – – – – (3,045,800) – (2,473,548) – (588,973) (3,062,521)
Balances at December 31, 2023 =12,000,000
P =1,132,331
P =12,662,905
P =1,877,400
P =1,405,390
P (P
= 990,150) P–
= (P
= 2,026,340) =18,700,000
P =23,341,856
P (P
= 180,511) =67,922,881
P =20,264,804
P (P
= 1,931,030) =86,256,655
P
Balance at January 1, 2022 =12,000,000
P =1,107,164
P =10,331,342
P =1,877,400
P =1,082,109
P (P
=1,140,807) (P
=12,795) (P
=2,026,340) =18,700,000
P =13,863,987
P (P
=180,511) =55,601,549
P =20,264,804
P (P
=1,682,198) =74,184,155
P
Net income (loss) – – – – – – – – – 7,558,503 – 7,558,503 – (220,010) 7,338,493
Other comprehensive income (loss) – – – 616,925 447,460 12,795 – – – – 1,077,180 – (230,810) 846,370
Total comprehensive income (loss) – – – – 616,925 447,460 12,795 – – 7,558,503 – 8,635,683 – (450,820) 8,184,863
Movements in other equity accounts:
Issuances and subscriptions to common stock
(Note 19) – 8,884 1,589,033 – – – – – – – – 1,597,917 – – 1,597,917
Reversal of subscription receivable (Note 19) – 15,169 (15,169) – – – – – – – – – – – –
Cost of stock options granted - net of tax (Note 26) – – 186,561 – – – – – – – – 186,561 – – 186,561
Cash dividends (Note 19) – – – – – – – – – (3,036,203) – (3,036,203) – – (3,036,203)
Cash dividend received by a non-controlling
interest – – – – – – – – – – – – – (32,565) (32,565)
Acquisition of a subsidiary – – – – – – – – – – – – – 464,810 464,810
Distribution on senior perpetual securities
(Note 19) – – – – – – – – – (764,747) – (764,747) – (764,747)
Additional investment during the year (Note 11) – – – – – – – – – – – – – 130,242 130,242
– 24,053 1,760,425 – – – – – – (3,800,950) – (2,016,472) – 562,487 (1,453,985)
Balances at December 31, 2022 =12,000,000
P =1,131,217
P =12,091,767
P =1,877,400
P =1,699,034
P (P
=693,347) =–
P (P
=2,026,340) =18,700,000
P =17,621,540
P (P
=180,511) =62,220,760
P =20,264,804
P (P
=1,570,531) =80,915,033
P
*SGVFS187686*
-2-
Equity Attributable to Equity Holders of the Parent Company (Note 31)
Cumulative
Translation Excess of Cost
Adjustments of Over the
Foreign Remeasurement Carrying
Capital Stock - Subsidiaries Gain (Loss) on Comprehensive Value of
Net of and Interests in Net Defined Income (Loss) Non-controlling Cost of Common Senior Non-
Subscription Additional Other Joint Ventures Benefit Plan - on Derivative Interests Stock Held in Perpetual controlling
Preferred Stock Receivable Paid-in Capital Reserve and Associates Net of tax Liability Acquired Treasury Securities Interests
(Note 19) (Note 19) (Note 19) (Note 11) (Note 11) (Note 25) (Note 18) (Note 19) Retained Earnings (Note 19) (Note 19) Total (Note 19) (Note 11) Total Equity
Balance at January 1, 2021 =–
P =1,105,079
P =9,913,890 =
P P1,877,400 (P
=477,554) (P
=1,401,113) (P
=141,480) (P
=2,026,340) P20,000,000
= =9,869,889
P (P
=180,511) =38,539,260
P =30,588,000
P (P
=1,095,395) =68,031,865
P
Net income (loss) – – – – – – – – – 5,981,690 – 5,981,690 – (479,699) 5,501,991
Other comprehensive income (loss) – – – 1,559,663 260,306 128,685 – – – – 1,948,654 – (179,138) 1,769,516
Total comprehensive income (loss) – – – – 1,559,663 260,306 128,685 – – 5,981,690 – 7,930,344 – (658,837) 7,271,507
Movements in other equity accounts: –
Issuances and subscriptions to common stock
(Note 19) – 2,085 321,749 – – – – – – – – 323,834 – – 323,834
Issuances of preferred stock 12,000,000 – (80,324) – – – – – – – – 11,919,676 – – 11,919,676
Cost of stock options granted - net of tax (Note 26) – – 176,027 – – – – – – – – 176,027 – – 176,027
Cash dividends (Note 19) – – – – – – – – – (1,965,106) – (1,965,106) – (28,581) (1,993,687)
Reversal of appropriated retained earnings during
the year (Note 19) – – – – – – – – (20,000,000) 20,000,000 – – – – –
Appropriation during the year (Note 19) – – – – – – – – 18,700,000 (18,700,000) – – – – –
Redemption of senior perpetual securities
(Note 19) – – – – – – – – – (167,423) – (167,423) (10,323,196) – (10,490,619)
Distribution on senior perpetual securities
(Note 19) – – – – – – – – – (1,155,063) – (1,155,063) – – (1,155,063)
Additional investment during the year – – – – – – – – – – – – – 100,615 100,615
12,000,000 2,085 417,452 – – – – – (1,300,000) (1,987,592) – 9,131,945 (10,323,196) 72,034 (1,119,217)
Balances at December 31, 2021 =12,000,000
P =1,107,164
P =10,331,342
P =1,877,400
P =1,082,109
P (P
=1,140,807) (P
=12,795) (P
=2,026,340) =18,700,000
P =13,863,987
P (P
=180,511) =55,601,549
P P20,264,804
= (P
=1,682,198) =74,184,155
P
See accompanying Notes to Consolidated Financial Statements.
*SGVFS187686*
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousand Pesos)
(Forward)
*SGVFS187686*
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*SGVFS187686*
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. General Information
Corporate Information
Jollibee Foods Corporation Doing business under the name and style of Jollibee (the Parent Company
or Ultimate Parent Company) was incorporated in the Philippines and registered with the Philippine
Securities and Exchange Commission (SEC) on January 11, 1978. The Parent Company and its
subsidiaries (collectively referred to as “the Jollibee Group”) and affiliates are involved primarily in
the development, operations and franchising of quick service restaurants (QSRs) under the trade
names “Jollibee”, “Greenwich”, “Chowking”, “Yong He King”, “Red Ribbon”, “Hong Zhuang
Yuan”, “Mang Inasal”, “Burger King”, “Highlands Coffee”, “Smashburger”, “Tortazo”, “Tim Ho
Wan”, “The Coffee Bean & Tea Leaf”, “Panda Express”, “Yoshinoya”, “Milksha” and “Common
Man Coffee Roasters”. The Parent Company is also primarily organized to invest in, acquire, own,
hold, use, sell, assign, transfer, lease, mortgage, exchange, or otherwise dispose of real and personal
properties, of every kind and description, or interests in the foregoing, pursuant to its business
objectives. The other activities of the Jollibee Group include manufacturing and support services for
the QSR systems and other business activities (see Notes 2 and 5).
The common and preferred shares of the Parent Company are listed and traded in the Philippine Stock
Exchange (PSE) beginning July 14, 1993 and October 14, 2021, respectively.
The registered office address of the Parent Company is 10/F Jollibee Plaza Building, 10 F. Ortigas Jr.
Ave., Ortigas Center, Pasig City.
Basis of Preparation
The consolidated financial statements of the Jollibee Group have been prepared on a historical cost
basis, except for financial assets at fair value through profit or loss (FVTPL) and derivative financial
instruments which are measured at fair value. The consolidated financial statements are presented in
Philippine peso, which is the Parent Company’s functional and presentation currency. All values are
rounded to the nearest thousand pesos, except par values, per share amounts, number of shares and
when otherwise indicated.
Statement of Compliance
The accompanying consolidated financial statements have been prepared in compliance with
Philippine Financial Reporting Standards (PFRS).
*SGVFS187686*
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Unless otherwise indicated, the adoption of these new standards did not have significant impact on
the consolidation financial statements.
The amendments provide guidance and examples to help entities apply materiality judgements to
accounting policy disclosures. The amendments aim to help entities provide accounting policy
disclosures that are more useful by:
Replacing the requirement for entities to disclose their ‘significant’ accounting policies with a
requirement to disclose their ‘material’ accounting policies; and,
Adding guidance on how entities apply the concept of materiality in making decisions about
accounting policy disclosures.
The amendments have an impact on the Jollibee Group’s disclosures of accounting policies, but
not on the measurement, recognition or presentation of any items in the Jollibee Group’s
consolidated financial statements.
The amendments introduce a new definition of accounting estimates and clarify the distinction
between changes in accounting estimates and changes in accounting policies and the correction of
errors. Also, the amendments clarify that the effects on an accounting estimate of a change in an
input or a change in a measurement technique are changes in accounting estimates if they do not
result from the correction of prior year errors.
Amendments to PAS 12, Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
The amendments narrow the scope of the initial recognition exception under PAS 12, so that it no
longer applies to transactions that give rise to equal taxable and deductible temporary differences.
The amendments also clarify that where payments that settle a liability are deductible for tax
purposes, it is a matter of judgement (having considered the applicable tax law) whether such
deductions are attributable for tax purposes to the liability recognized in the financial statements
(and interest expense) or to the related asset component (and interest expense).
Amendments to PAS 12, International Tax Reform – Pillar Two Model Rules
The amendments introduce a mandatory exception in PAS 12 from recognizing and disclosing
deferred tax assets and liabilities related to Pillar Two income taxes.
The amendments also clarify that PAS 12 applies to income taxes arising from tax law enacted or
substantively enacted to implement the Pillar Two Model Rules published by the Organization for
Economic Cooperation and Development (OECD), including tax law that implements qualified
*SGVFS187686*
-3-
domestic minimum top-up taxes. Such tax legislation, and the income taxes arising from it, are
referred to as ‘Pillar Two legislation’ and ‘Pillar Two income taxes’, respectively.
The temporary exception from recognition and disclosure of information about deferred taxes and
the requirement to disclose the application of the exception, apply immediately and
retrospectively upon adoption of the amendments in June 2023.
Meanwhile, the disclosure of the current tax expense related to Pillar Two income taxes and the
disclosures in relation to periods before the legislation is effective are required for annual
reporting periods beginning on or after 1 January 2023.
‘Pillar Two legislation’ has been enacted, or substantively enacted, in certain jurisdictions (i.e.,
United Kingdom and Japan) the Jollibee Group operates. The Legislation will be effective for the
Jollibee Group’s financial year beginning January 1, 2024. The Jollibee Group is in scope of the
enacted or substantively enacted legislation and has performed an assessment of the potential
exposure to ‘Pillar Two income taxes.’ The assessment of the potential exposure to ‘Pillar Two
income taxes’ was based on the most recent tax filings, country-by-country reporting and
financial statements for the covered entities of the Jollibee Group. Based on the assessment, the
Jollibee Group does not expect material exposure to ‘Pillar Two income taxes.’
However, for other jurisdictions (i.e., Hungary, Italy, Ireland and Vietnam) the respective ‘Pillar
Two legislations’ were enacted close to the reporting date. Therefore, the Jollibee Group is still
in the process of assessing the potential exposure to ‘Pillar Two income taxes’ as at
December 31, 2023. The potential exposure, if any, to ‘Pillar Two income taxes’ is currently not
known or reasonably estimable.
The amendments are effective for annual reporting years beginning on or after January 1, 2024
and must be applied retrospectively.
The Jollibee Group is currently assessing the impact the amendments will have on current
practice and whether existing loan agreements may require renegotiation.
*SGVFS187686*
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The overall objective of PFRS 17 is to provide an accounting model for insurance contracts that
is more useful and consistent for insurers. In contrast to the requirements in PFRS 4, which are
largely based on grandfathering previous local accounting policies, PFRS 17 provides a
comprehensive model for insurance contracts, covering all relevant accounting aspects. The core
of PFRS 17 is the general model, supplemented by:
A specific adaptation for contracts with direct participation features (the variable fee
approach); and,
A simplified approach (the premium allocation approach) mainly for short-duration contracts.
On December 15, 2021, the Financial and Sustainability Reporting Standards Council (FSRSC)
amended the mandatory effective date of PFRS 17 from January 1, 2023 to January 1, 2025. This
is consistent with Circular Letter No. 2020-62 issued by the Insurance Commission which
deferred the implemenepstation of PFRS 17 by two (2) years after its effective date as decided by
the IASB.
PFRS 17 is effective for reporting years beginning on or after January 1, 2025, with comparative
figures required. Early application is permitted.
Adoption of this standard is not expected to have any material impact to the Jollibee Group.
*SGVFS187686*
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Deferred Effectivity
Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or Contribution
of Assets between an Investor and its Associate or Joint Venture
The amendments address the conflict between PFRS 10 and PAS 28 in dealing with the loss of
control of a subsidiary that is sold or contributed to an associate or joint venture. The
amendments clarify that a full gain or loss is recognized when a transfer to an associate or joint
venture involves a business as defined in PFRS 3. Any gain or loss resulting from the sale or
contribution of assets that does not constitute a business, however, is recognized only to the
extent of unrelated investors’ interests in the associate or joint venture.
On January 13, 2016, the FSRSC deferred the original effective date of January 1, 2016 of the
said amendments until the IASB completes its broader review of the research project on equity
accounting that may result in the simplification of accounting for such transactions and of other
aspects of accounting for associates and joint ventures.
Basis of Consolidation
The Jollibee Group is considered to have control over an investee when the Jollibee Group has:
Power over the investee (i.e., existing rights that give it the current ability to direct the relevant
activities of the investee);
Exposure, or rights, to variable returns from its involvement with the investee; and,
The ability to use its power over the investee to affect its returns.
When the Jollibee Group has less than majority of voting or similar rights of an investee, the Jollibee
Group considers all relevant facts and circumstances in assessing whether it has power over an
investee including:
The contractual arrangement with the other vote holders of the investee;
Rights arising from other contractual arrangements; and,
The Jollibee Group’s voting rights and potential voting rights.
The Jollibee Group re-assesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of control. Consolidation of a
subsidiary begins when the Jollibee Group obtains control over the subsidiary and ceases when the
Jollibee Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the consolidated financial statements from the
date the Jollibee Group gains control until the date the Jollibee Group ceases to control the subsidiary.
*SGVFS187686*
-6-
Profit or loss and each component of Other Comprehensive Income (OCI) are attributed to the equity
holders of the Parent Company and to the non-controlling interests, even if this results in the non-
controlling interests having a deficit balance. When necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting policies in line with the Jollibee Group’s
accounting policies. All intra and inter-group assets and liabilities, equity, income, expenses and cash
flows relating to transactions between members of the Jollibee Group are eliminated in full at
consolidation.
The reporting dates of the Parent Company and the associates or joint ventures are identical and the
latter’s accounting policies conform to those used by the Parent Company for like transactions and
events in similar circumstances.
Non-controlling interests represent the interests in the subsidiaries not held by the Parent Company,
and are presented separately in the consolidated statement of comprehensive income and consolidated
statement of financial position, separately from equity attributable to equity holders of the
Parent Company.
A change in ownership interest in a subsidiary that does not result in a loss of control is accounted for
as an equity transaction. The carrying amounts of the controlling and non-controlling interests are
adjusted to reflect the changes in the Jollibee Group’s relative interests in the subsidiary. The Jollibee
Group recognizes directly in equity any difference between the amount by which the non-controlling
interests are adjusted and the fair value of the consideration paid or received, and attribute it to the
equity holders of the Parent Company. In particular cases where the Jollibee Group acquires non-
controlling interest in a subsidiary at a consideration in excess of its carrying amount, the excess is
charged to the “Excess of cost over the carrying value of non-controlling interests acquired” account
under equity. These changes in the ownership interest in a subsidiary do not result in the recognition
of a gain or loss in profit or loss. These include acquisitions of non-controlling interests of
Greenwich, Yong He King, Adgraphix, Mang Inasal, Happy Bee Foods Processing Pte. Ltd. and
Smashburger.
The consolidated financial statements include the accounts of the Parent Company and the following
wholly owned and majority-owned subsidiaries as at December 31, 2023 and 2022:
2023 2022
Country of Direct Indirect Direct Indirect
Incorporation Principal Activities Ownership Ownership Ownership Ownership
Fresh N’ Famous Foods Inc. (Fresh N’ Famous) Philippines Food service 100 – 100 –
Chowking Food Corporation USA United States
of America
(USA) Holding company – 100 – 100
Zenith Foods Corporation (Zenith) Philippines Food service 100 – 100 –
Pinnacle Quality Food Inc. (PQF) (h) Philippines Food service – 100 – 100
Freemont Foods Corporation (Freemont) Philippines Food service 100 – 100 –
*SGVFS187686*
-7-
2023 2022
Country of Direct Indirect Direct Indirect
Incorporation Principal Activities Ownership Ownership Ownership Ownership
RRB Holdings, Inc. (RRBH): Philippines Holding company 100 – 100 –
Red Ribbon Bakeshop, Inc. (RRBI) Philippines Food service – 100 – 100
Red Ribbon Bakeshop, Inc. USA (RRBI USA) USA Food service – 100 – 100
Mang Inasal Philippines Inc. (Mang Inasal) Philippines Food service 100 – 100 –
Grandworth Resources Corporation (Grandworth): Philippines Leasing 100 – 100 –
Adgraphix, Inc. (Adgraphix) Philippines Digital printing – 100 – 100
Iconnect Multi Media Network, Inc. (Iconnect) Philippines Dormant – 60 – 60
FCJB Foods, Inc. (b) Philippines Food service 60 – – –
Jollibee Worldwide Pte. Ltd. (JWPL): Singapore Holding company 100 – 100 –
Regional Operating Headquarters of JWPL (JWS) Philippines Financial
accounting,
human resources
and logistics
services – 100 – 100
Golden Plate Pte., Ltd. (GPPL): Singapore Holding company – 100 – 100
- Golden Beeworks Pte. Ltd. Singapore Food service – 60 – 60
- Golden Piatto Pte. Ltd. Singapore Holding company – 75 – 75
Cibo Felice S.R.L. Italy Food service – 100 – 100
- Bee World Spain, Sociedad Limitada Spain Food service – 100 – 100
- Hong Yun Hong (Shanghai) Food and Beverages
Management Company Ltd. PRC Food service – 60 – 60
- Meko Holdings Limited (a) Hong Kong Food service – 60 – –
Golden Cup Pte. Ltd. Singapore Holding company – 60 – 60
Beijing New Hongzhuang Yuan Food and Beverage
Management Co., Ltd. (Hong Zhuang Yuan) PRC Food service – 100 – 100
Southsea Binaries Ltd. (Southsea) British Virgin
Island
(BVI) Holding company – 100 – 100
Beijing Yong He King Food and Beverage Co., Ltd. PRC Food service – 100 – 100
Shenzhen Yong He King Food and
Beverage Co., Ltd. PRC Food service – 100 – 100
Hangzhou Yongtong Food and Beverage Co., Ltd. PRC Food service – 100 – 100
Hangzhou Yong He King Food and
Beverage Co., Ltd. PRC Food service – 100 – 100
Wuhan Yong He King Food and Beverage Co., Ltd. PRC Food service – 100 – 100
Tianjin Yong He King Food and Beverage Co., Ltd. PRC Food service – 100 – 100
Happy Bee Foods Processing Pte. Ltd. (HBFPPL) Singapore Holding company – 100 – 100
- Happy Bee Foods Processing (Anhui) Co. Ltd. PRC Food service – 100 – 100
JSF Investments Pte. Ltd. (JSF): Singapore Holding company – 100 – 100
- SF Vung Tau Joint Stock Company Vietnam Holding company – 60 – 60
Highland Coffee Service Joint-stock Company Vietnam Food service – 100 – 100
Quantum Corporation Vietnam Food service – 100 – 100
Pho Viet Joint Stock Company Vietnam Food service – 100 – 100
Pho 24 Service Trade Manufacture
Corporation Vietnam Food service – 100 – 100
- Blue Sky Holdings Limited Hong Kong Holding company – 60 – 60
Sino Ocean Limited Hong Kong Food service – 100 – 100
Blue Sky Holdings (Macau) Limited Macau Food service – 100 – 100
Jollibee (China) Food & Beverage Management PRC Management
Co.Ltd. company – 100 – 100
- Jollibee (Shanghai) Consulting Management Co., PRC Management
Ltd. (c) company – 100 – –
Jollibee International (BVI) Ltd. (JIBL): BVI Holding company – 100 – 100
- Jollibee Vietnam Corporation Ltd. Vietnam Food service – 100 – 100
Goldstar Food Trade and Service Company
Limited (GSC) Vietnam Food service – 100 – 100
- PT Chowking Indonesia Indonesia Dormant – 100 – 100
- PT Jollibee Indonesia Indonesia Dormant – 100 – 100
- Jollibee (Hong Kong) Limited Hong Kong Dormant – 85 – 85
- Belmont Enterprises Ventures Limited (Belmont) BVI Holding company – 100 – 100
Yong He Holdings Co., Ltd. BVI Holding company – 100 – 100
Centenary Ventures Ltd. BVI Holding company – 100 – 100
Bee World UK Limited (UK) UK Food service – 100 – 100
JWPL Management Co., Pte. Ltd.(g) Singapore Management
company – 100 – 100
- Branch of JWPL Management Co., Pte. Ltd.(e) Hong Kong Management
company – 100 – 100
Super Magnificent Coffee Company Pte. Ltd.
(SMCC-SG) Singapore Holding company – 80 – 80
- Super Magnificent Coffee Company Ireland
Limited (SMCC-IE) Ireland Holding company – 100 – 100
- Super Magnificent Coffee Company Hungary Kft.
(SMCC-HU) Hungary Holding company – 100 – 100
*SGVFS187686*
-8-
2023 2022
Country of Direct Indirect Direct Indirect
Incorporation Principal Activities Ownership Ownership Ownership Ownership
International Coffee & Tea, LLC (ICTL) USA Food service – 100 – 100
6000 Jefferson BH, LLC(d) USA Holding company – 80 – 100
CBTL Ventures, LLC USA Food service – 100 – 100
CBTL Franchising, LLC Franchising
USA company – 100 – 100
- The Coffee Bean & Tea Leaf (Singapore) Pte., Ltd.
(CBTL-SG) Singapore Food service – 100 – 100
The Coffee Bean & Tea Leaf (Malaysia)
Sdn. Bhd. Malaysia Food service – 100 – 100
The Coffee Bean & Tea Leaf (Hongkong)
Limited Hong Kong Dormant – 100 – 100
- Magnificent Coffee Trading Pte. Ltd Singapore Food Service – 100 – 100
Milkshop International Inc. (Milksha) (i) Taiwan Food Service – 51 – –
Chanceux, Inc. Philippines Holding company 100 – 100 –
BKTitans Inc. (BKTitans) Philippines Holding company – 54 – 54
- PFN Holdings Corporation Philippines Holding company – 99 – 99
PERF Restaurants, Inc. Philippines Food service – 100 – 100
PERF Trinoma, Inc. Philippines Food service – 100 – 100
PERF MOA Pasay Inc. Philippines Food service – 100 – 100
Jollibee Foods Corporation (USA) USA Holding company 100 – 100 –
Honeybee Foods Corporation (HFC) USA Food service – 100 – 100
- Tokyo Teriyaki Corporation (TTC) USA Food service – 100 – 100
- Honeybee Foods (Canada) Corporation (HFCC) Canada Food service – 100 – 100
Bee Good! Inc. (BGI) USA Holding company – 100 – 100
- SJBF LLC (SJBF) USA Food service – 100 – 100
Jolly USA Services LLC(f) USA Holding company – 100 – 100
- JBM LLC (f) USA Franchising – 100 – 100
Donut Magic Phils., Inc. (Donut Magic)(j) Philippines Dormant 100 – 100 –
Ice Cream Copenhagen Phils., Inc. (ICCP)(j) Philippines Dormant 100 – 100 –
Mary’s Foods Corporation (Mary’s) (j) Philippines Dormant 100 – 100 –
QSR Builders, Inc. Philippines Dormant 100 – 100 –
(a) On September 1, 2023, the Parent company, through its wholly owned subsidiary, GPPL, completed the acquisition of 60% ownership in Meko Holdings
Limited.
(b) On August 29, 2023, FCJB Foods, Inc. was incorporated in the Philippines which is 60% owned by the Parent Company.
(c) On August 21, 2023, Jollibee (Shanghai) Consulting Management Co., Ltd. was incorporated in PRC.
(d) Effective January 1, 2023, pursuant to a recapitalization, ICTL is now an 80% holder of 6000 Jefferson BH LLC.
(e) On July 19, 2022, Branch of JWPL Management Co., Pte. Ltd. was incorporated in Hong Kong.
(f) On June 21, 2022, Jolly USA Services LLC and JBM LLC were incorporated in the State of Delaware.
(g) On June 7, 2022, the Jollibee Group, through its wholly owned subsidiary, JWPL, incorporated JWPL Management Co., Pte. Ltd. in Singapore.
(h) On June 6, 2022, Pinnacle Quality Food Inc. was incorporated in the Philippines.
(i) On February 22, 2022, the Parent company, through its wholly owned subsidiary, JWPL, completed the acquisition of 51% ownership in Milkshop
International Inc.
(j) On June 18, 2004, the stockholders of the Jollibee Group approved the Plan of Merger of the three (3) dormant companies. The application is pending
approval from the SEC as at December 31, 2023.
The material accounting policies adopted in the preparation of the consolidated financial statements
are summarized below:
The principal or the most advantageous market must be accessible by the Jollibee Group.
*SGVFS187686*
-9-
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic
best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
The fair value for financial instruments traded in active markets at the reporting date is based on their
quoted price or binding dealer price quotations, without any deduction for transaction costs. Where
the Jollibee Group has financial assets and financial liabilities with offsetting positions in market risks
or counterparty credit risk, it has elected to use the measurement exception to measure the fair value
of its net risk exposure by applying the bid or ask price to the net open position as appropriate. For
all other financial instruments not traded in an active market, the fair value is determined by using
valuation techniques deemed to be appropriate in the circumstances. Valuation techniques include
the market approach (i.e., using prices and other relevant information generated by market
transactions involving identical or comparable assets, liabilities or a group of assets and liabilities),
the income approach (i.e., discounted cash flow analysis and option pricing models making as much
use of available and supportable market data as possible) and the cost approach (i.e., based on the
amount required to replace the service capacity of an asset).
The Jollibee Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial
statements are categorized within the fair value hierarchy, described as follows, based on the lowest-
level input that is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 – Valuation techniques for which the lowest-level input that is significant to the fair value
measurement is directly or indirectly observable.
Level 3 – Valuation techniques for which the lowest-level input that is significant to the fair value
measurement is unobservable.
For assets and liabilities that are recognized in the consolidated financial statements on a recurring
basis, the Jollibee Group determines whether transfers have occurred between levels in the hierarchy
by reassessing categorization (based on the lowest-level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
The Jollibee Group’s management determines the policies and procedures for both recurring fair
value measurement and non-recurring measurement. At each reporting date, the management
analyzes the movements in the values of assets and liabilities which are required to be remeasured or
reassessed as per the Jollibee Group’s accounting policies. For this analysis, the management verifies
the major inputs applied in the latest valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.
For the purpose of fair value disclosures, the Jollibee Group has determined classes of assets and
liabilities based on the nature, characteristics and risks of the asset or liability and the level of the fair
value hierarchy as explained above.
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Short-term Investments
Short-term investments are deposits with original maturities of more than three months to one year
from acquisition date.
Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
Date of Recognition. The Jollibee Group recognizes a financial asset or a financial liability in the
consolidated statements of financial position, when it becomes a party to the contractual provisions of
the instrument. Purchases or sales of financial assets that require delivery of assets within a time
frame established by regulation or convention in the marketplace (regular way trades) are recognized
on the trade date, i.e., the date that the Jollibee Group commits to purchase or sell the asset.
Financial Assets
Initial Recognition and Measurement. Financial assets are classified, at initial recognition, as
subsequently measured at amortized cost, fair value through other comprehensive income (FVOCI)
and FVTPL.
The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Jollibee Group’s business model for managing them. With the
exception of trade receivables that do not contain a significant financing component or for which the
Jollibee Group has applied the practical expedient, the Jollibee Group initially measures a financial
asset at its fair value plus, in the case of a financial asset not at FVTPL, transaction costs. Trade
receivables that do not contain a significant financing component or for which the Jollibee Group has
applied the practical expedient are measured at the transaction price determined under PFRS 15.
In order for a financial asset to be classified and measured at amortized cost or FVOCI, it needs to
give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument
level.
The Jollibee Group’s business model for managing financial assets refers to how it manages its
financial assets in order to generate cash flows. The business model determines whether cash flows
will result from collecting contractual cash flows, selling the financial assets, or both.
Subsequent Measurement. For purposes of subsequent measurement, financial assets are classified in
four categories:
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The Jollibee Group has no financial assets at FVOCI as at December 31, 2023 and 2022.
Financial Assets at Amortized Cost (Debt Instruments). This category is the most relevant to the
Jollibee Group. The Jollibee Group measures financial assets at amortized cost if both of the
following conditions are met:
The financial asset is held within a business model with the objective to hold financial assets in
order to collect contractual cash flows; and,
The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest (EIR)
method and are subject to impairment. Gains and losses are recognized in profit or loss when the
asset is derecognized, modified or impaired.
The Jollibee Group’s cash in banks, short-term deposits, short-term investments, receivables
(excluding receivables from government agencies), security and other deposits, operating lease
receivables and finance lease receivables are classified under this category as at December 31, 2023
and 2022.
Financial Assets at FVTPL. Financial assets at FVTPL include financial assets held for trading,
financial assets designated upon initial recognition at FVTPL, or financial assets mandatorily required
to be measured at fair value. Financial assets are classified as held for trading if they are acquired for
the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded
derivatives, are also classified as held for trading unless they are designated as effective hedging
instruments. Financial assets with cash flows that are not solely payments of principal and interest
are classified and measured at FVTPL, irrespective of the business model. Notwithstanding the
criteria for debt instruments to be classified at amortized cost or FVOCI, as described above, debt
instruments may be designated at FVTPL on initial recognition if doing so eliminates, or significantly
reduces, an accounting mismatch.
Financial assets at FVTPL are carried in the consolidated statements of financial position at fair value
with net changes in fair value recognized in the consolidated statements of comprehensive income.
The Jollibee Group’s investments in golf, leisure club shares, bond funds and private equity are
classified under this category as at December 31, 2023 and 2022.
Impairment of Financial Assets. The Jollibee Group recognizes an allowance for Expected Credit
Losses (ECLs) for all debt instruments not held at FVTPL. ECLs are based on the difference between
the contractual cash flows due in accordance with the contract and all the cash flows the Jollibee
Group expects to receive discounted at an approximation of the original EIR. The expected cash
flows will include cash flows from the sale of collateral held or other credit enhancements that are
integral to the contractual terms.
ECLs are recognized in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).
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For receivables and contract assets, and operating lease receivables, the Jollibee Group applies a
simplified approach in calculating ECLs. Therefore, the Jollibee Group does not track changes in
credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting
date. The Jollibee Group has established a provision matrix that is based on its historical credit loss
experience, adjusted for forward-looking factors specific to the debtors and the economic
environment.
For security and other deposits, the Jollibee Group applies the general approach and calculates ECL
based on the 12-month ECLs or lifetime ECLs, depending on whether there has been a significant
increase in credit risk on the financial instruments since initial recognition.
For cash in banks, short-term deposits and short-term investments, the Jollibee Group applies the low
credit risk simplification. The probability of default and loss given defaults are publicly available and
are considered to be low credit risk investments. It is the Jollibee Group’s policy to measure ECLs on
such instruments on a 12-month basis. However, when there is a significant increase in credit risk
since origination, the allowance will be based on the lifetime ECL. The Jollibee Group assesses that
there is a significant increase in credit risk of a financial asset when default occurs.
The Jollibee Group considers a financial asset in default when contractual payments are 30 days past
due. However, in certain cases, the Jollibee Group may also consider a financial asset to be in default
when internal or external information indicates that the Jollibee Group is unlikely to receive the
outstanding contractual amounts in full before taking into account any credit enhancements held by
the Jollibee Group. A financial asset is written off when there is no reasonable expectation of
recovering the contractual cash flows.
The Jollibee Group incorporates forward-looking information into both its assessment of whether the
credit risk of an instrument has increased significantly since its initial recognition and its
measurement of ECL. To do this, the Jollibee Group has considered a range of relevant forward-
looking macro-economic assumptions for the determination of unbiased general industry adjustments
and any related specific industry adjustments that support the calculation of ECLs.
Based on the Jollibee Group’s evaluation and assessment and after taking into consideration external
actual and forecast information, the Jollibee Group considers two or more economic scenarios and the
relative probabilities of each outcome. External information includes economic data and forecasts
published by governmental bodies, monetary authorities and selected private-sector and academic
institutions.
The Jollibee Group has identified and documented key drivers of credit risk and credit losses of each
portfolio of financial instruments and, using an analysis of historical data, has estimated relationships
between macro-economic variables and credit risk and credit losses. The Jollibee Group considers
macro-economic factors such as gross domestic product growth rates and inflation rates in its
analysis.
Financial Liabilities
Initial Recognition and Measurement. Financial liabilities are classified, at initial recognition, as
financial liabilities at FVTPL, loans and borrowings, payables or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.
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The Jollibee Group’s financial liabilities include loans and borrowings, payables and derivative
financial liabilities as at December 31, 2023 and 2022.
Subsequent Measurement
Loans and Borrowings, and Other Payables. This is the category most relevant to the Jollibee
Group. After initial recognition, interest-bearing loans and borrowings, and other payables are
subsequently measured at amortized cost using the EIR method. Gains and losses are recognized
in profit or loss when the liabilities are derecognized as well as through the EIR amortization
process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and
fees or costs, including debt issue costs for the Jollibee Group’s debts that are an integral part of
the EIR. The EIR amortization is included as interest expense in the consolidated statements of
comprehensive income.
This category includes the Jollibee Group’s trade payables and other current liabilities (excluding
local and other taxes payable and unearned revenue from gift certificates), short-term and long-
term debts, senior debt securities and lease liabilities as at December 31, 2023 and 2022.
Debt Issue Costs. Debt issue costs are specific incremental costs, other than those paid to the
lender, that are directly related to issuing a debt instrument. These are presented in the
consolidated statements of financial position as a reduction from the related debt instrument and
are amortized through the EIR amortization process.
Financial Assets. A financial asset (or, where applicable, a part of a financial asset or part of a group
of similar financial assets) is primarily derecognized (i.e., removed from the Jollibee Group’s
consolidated statement of financial position) when:
The rights to receive cash flows from the asset have expired; or,
The Jollibee Group has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party under a
‘pass-through’ arrangement; and either (a) the Jollibee Group has transferred substantially all the
risks and rewards of the asset, or (b) the Jollibee Group has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Jollibee Group has transferred its rights to receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and
rewards of ownership. When it has neither transferred nor retained substantially all of the risks and
rewards of the asset, nor transferred control of the asset, the Jollibee Group continues to recognize the
transferred asset to the extent of its continuing involvement. In that case, the Jollibee Group also
recognizes an associated liability. The transferred asset and the associated liability are measured on a
basis that reflects the rights and obligations that the Jollibee Group has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum amount of consideration that
the Jollibee Group could be required to repay.
Financial Liabilities. A financial liability is derecognized when the obligation under the liability is
discharged, cancelled or has expired. When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of an existing liability are substantially
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modified, such an exchange or modification is treated as a derecognition of the original liability and
the recognition of a new liability, and the difference in the respective carrying amounts is recognized
in the consolidated statements of comprehensive income.
Initial Recognition and Subsequent Measurement. The Jollibee Group uses derivative financial
instruments, such as cross currency swaps and interest rate swaps to hedge its foreign currency risks
and interest rate risks, respectively. Such derivative financial instruments are initially recognized at
fair value on the date on which a derivative contract is entered into and are subsequently remeasured
at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or
loss, except for the effective portion of cash flow hedges, which is recognized in other comprehensive
income and later reclassified to profit or loss when the hedge item affects profit or loss.
Fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or
liability or an unrecognized firm commitment;
Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable
to a particular risk associated with a recognized asset or liability or a highly probable forecast
transaction or the foreign currency risk in an unrecognized firm commitment; and,
Hedges of a net investment in a foreign operation.
The Jollibee Group’s interest rate swap is a cash flow hedge. The Jollibee Group has no fair value
hedge and hedge of a net investment in a foreign operation as at December 31, 2023 and 2022.
At the inception of a hedge relationship, the Jollibee Group formally designates and documents the
hedge relationship to which it wishes to apply hedge accounting and the risk management objective
and strategy for undertaking the hedge.
The documentation includes identification of the hedging instrument, the hedged item, the nature of
the risk being hedged and how the Jollibee Group will assess whether the hedging relationship meets
the hedge effectiveness requirements (including analysis of sources of hedge ineffectiveness and how
the hedge ratio is determined). A hedging relationship qualifies for hedge accounting if it meets all of
the following effectiveness requirements:
There is ‘an economic relationship’ between the hedged item and the hedging instrument;
The effect of credit risk does not ‘dominate the value changes’ that result from that economic
relationship; and,
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the
hedged item that the Jollibee Group actually hedges and the quantity of the hedging instrument
that the Jollibee Group actually uses to hedge that quantity of hedged item.
Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:
Cash Flow Hedges. Cash flow hedges are hedges of the exposure to variability in cash flows that is
attributable to a particular risk associated with a recognized asset, liability or a highly probable
forecast transaction and could affect the consolidated statements of comprehensive income. Changes
in the fair value of a hedging instrument that qualifies as a highly effective cash flow hedge are
recognized as “Comprehensive income (loss) on derivative liability” in the consolidated statements of
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Amounts recognized as other comprehensive are transferred to profit or loss when the hedged
transaction affects profit or loss, such as when the hedged income or expense is recognized or when a
forecast sale occurs.
If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover
(as part of the hedging strategy), or if its designation as a hedge is revoked, or when the hedge no
longer meets the criteria for hedge accounting, any cumulative gain or loss previously recognized in
other comprehensive income remains separately in equity until the forecasted transaction occurs or
the foreign currency firm commitment is met.
Contract Balances
Trade Receivables. A receivable represents the Jollibee Group’s right to an amount of consideration
that is unconditional (i.e., only the passage of time is required before payment of the consideration is
due).
Contract Assets. A contract asset is the right to consideration in exchange for goods or services
transferred to the customer. If the Company performs by transferring goods or services to a customer
before the customer pays consideration or before payment is due, a contract asset is recognized for
the earned consideration that is conditional.
Contract Liabilities. A contract liability is the obligation to transfer goods or services to a customer
for which the Jollibee Group has received consideration (or an amount of consideration is due) from
the customer. If a customer pays consideration before the Jollibee Group transfers goods or services
to the customer, a contract liability is recognized when the payment is made or the payment is due
(whichever is earlier). Contract liabilities are recognized as revenues when the Jollibee Group
performs under the contract.
Inventories
Inventories are valued at the lower of cost and net realizable value. Costs are accounted for as
follows:
Net realizable value of processed inventories is the estimated selling price in the ordinary course of
business, less estimated costs of completion and the estimated costs necessary to make the sale.
Net realizable value of food supplies, packaging, store and other supplies is the current replacement
cost. Food and other supplies are held for use in the production of processed inventories.
Net realizable value of novelty items is the estimated selling price in the ordinary course of business,
less the estimated costs necessary to make the sale.
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The initial cost of property, plant and equipment consists of its purchase price, including import
duties and nonrefundable taxes and any other costs directly attributable in bringing the asset to its
working condition and location for its intended use. Cost also includes any related asset retirement
obligation and interest incurred during the construction period on funds borrowed to finance the
construction of the asset. Expenditures incurred after the property, plant and equipment have been
put into operation, such as repairs and maintenance, are normally charged to profit or loss in the
period in which the costs are incurred. In situations where it can be clearly demonstrated that the
expenditures have resulted in an increase in the future economic benefits expected to be obtained
from the use of an item of property, plant and equipment beyond its originally assessed standard of
performance, the expenditures are capitalized as additional costs of property, plant and equipment.
Depreciation and amortization are calculated on a straight-line basis over the following estimated
useful lives of the assets:
The residual values, if any, useful lives and depreciation and amortization method of the assets are
reviewed at the end of each financial period and adjusted prospectively, if appropriate.
Fully depreciated assets are retained in the accounts until they are disposed or retired.
An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset
(calculated as the difference between the disposal proceeds and the carrying amount of the asset) is
included in profit or loss in the period the asset is derecognized.
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Construction in progress represents assets under construction and is stated at cost less any impairment
in value. This includes the cost of construction and other direct costs. Cost also includes interest on
borrowed funds incurred during the construction period. Construction in progress is not depreciated
until such time that the relevant assets are completed and ready for use.
When one or more items of property, plant and equipment is acquired in exchange for a
non‑monetary asset or assets, or a combination of monetary and non‑monetary assets, the cost of such
property, plant and equipment is measured at fair value unless (a) the exchange transaction lacks
commercial substance or (b) the fair value of neither the asset received, nor the asset given up is
reliably measurable. The acquired item is measured in this way even if an entity cannot immediately
derecognize the asset given up. If the acquired item is not measured at fair value, its cost is measured
at the carrying amount of the asset given up.
Investment Properties
Investment properties consist of buildings and building improvements held by the Jollibee Group for
capital appreciation and rental purposes. Investment properties are carried at cost, including
transaction costs, less accumulated depreciation and amortization and any impairment in value.
The depreciation of buildings and building improvements are calculated on a straight-line basis over
the estimated useful lives of the assets which are five (5) to thirty-five (35) years.
Business Combinations
Business combinations are accounted for using the acquisition method. Applying the acquisition
method requires the (a) determination whether the Jollibee Group will be identified as the acquirer;
(b) determination of the acquisition date; (c) recognition and measurement of the identifiable assets
acquired, liabilities assumed and any non-controlling interest in the acquiree; and (d) recognition and
measurement of goodwill or a gain from a bargain purchase.
When the Jollibee Group acquires a business, it assesses the financial assets and liabilities assumed
for appropriate classification and designation in accordance with the contractual terms, economic
circumstances and pertinent conditions as at acquisition date.
The cost of an acquisition is measured as the aggregate of the (a) consideration transferred by the
Jollibee Group, measured at acquisition-date fair value, (b) amount of any non-controlling interest in
the acquiree and (c) acquisition-date fair value of the Jollibee Group’s previously held equity interest
in the acquiree in a business combination achieved in stages. Acquisition costs incurred are expensed
and included in “General and administrative expenses” account in the consolidated statements of
comprehensive income.
Initial Measurement of Non-controlling Interest. For each business combination, the Jollibee Group
measures the non-controlling interest in the acquiree using the proportionate share of the acquiree’s
fair value of identifiable net assets.
Business Combination Achieved in Stages. In a business combination achieved in stages, the Jollibee
Group remeasures its previously held equity interests in the acquiree at its acquisition-date fair value
and recognizes the resulting gain or loss, if any, in profit or loss.
Measurement Period. If the initial accounting for a business combination is incomplete by the end of
the reporting period in which the business combination occurs, the Jollibee Group reports in its
consolidated financial statements provisional amounts for the items for which the accounting is
incomplete. The measurement period ends as soon as the Jollibee Group receives the information it
was seeking about facts and circumstances that existed as at the acquisition date or learns that more
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information is not obtainable. The measurement period does not exceed one year from the acquisition
date.
Impairment Testing of Goodwill. For the purpose of impairment testing, goodwill acquired in a
business combination is, from the acquisition date, allocated to each of the Jollibee Group’s
CGU, or groups of CGUs, that are expected to benefit from the synergies of the combination,
irrespective of whether other assets or liabilities of the acquiree are assigned to those units or group
of units.
represents the lowest level within the Jollibee Group at which the goodwill is monitored for
internal management purposes; and,
is not larger than an operating segment as defined in PFRS 8, Operating Segments, before
aggregation.
Frequency of Impairment Testing. Irrespective of whether there is any indication of impairment, the
Jollibee Group tests goodwill acquired in a business combination for impairment annually as at
December 31 and more frequently when circumstances indicate that the carrying amount is impaired.
Allocation of Impairment Loss. An impairment loss is recognized for a CGU if the recoverable
amount of the unit or group of units is less than the carrying amount of the unit or group of units. The
impairment loss is allocated to reduce the carrying amount of the assets of the unit or group of units
first to reduce the carrying amount of goodwill allocated to the CGU or group of units and then to the
other assets of the unit or group of units pro rata on the basis of the carrying amount of each asset in
the unit or group of units. In allocating the impairment loss, the Jollibee Group cannot reduce the
carrying amount of an asset below the highest of its fair value less cost of disposal if measurable, its
value in use if determinable and zero.
Intangible Assets
Intangible assets acquired separately are measured at cost on initial recognition. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and any
accumulated impairment loss. The useful lives of intangible assets are assessed at the individual asset
level as either finite or indefinite.
Intangible assets with finite lives are amortized over the useful economic life using the straight-line
method and assessed for impairment whenever there is an indication that the intangible assets may be
impaired. At a minimum, the amortization period and the amortization method for an intangible asset
with a finite useful life are reviewed at least at each financial year-end. Changes in the expected
useful life or the expected pattern of consumption of future economic benefits embodied in the asset
are accounted for by changing the amortization period or method, as appropriate, and treated as
changes in accounting estimates.
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Intangible assets with indefinite useful lives are tested for impairment annually either individually or
at the CGU level. Such intangible assets are not amortized. The useful life of an intangible asset
with an indefinite life is reviewed annually to determine whether the indefinite life assessment
continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is
made on a prospective basis.
Amortization of computer software, trademarks and other intangible assets are calculated on a
straight-line basis over the following estimated useful lives of the assets:
Gains or losses arising from derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset, and are recognized in profit
or loss when the asset is derecognized.
For nonfinancial assets, excluding goodwill, an assessment is made at each reporting date as to
whether there is any indication that previously recognized impairment losses may no longer exist or
may have decreased. If such indication exists, the recoverable amount is estimated. A previously
recognized impairment loss is reversed only if there has been a change in the estimates used to
determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the
case, the carrying amount of the asset is increased to its recoverable amount. That increased amount
cannot exceed the carrying amount that would have been determined, net of depreciation and
amortization, had no impairment loss been recognized for the asset in prior periods. Such reversal is
recognized in profit or loss. After such a reversal, the depreciation charge is adjusted in future
periods to allocate the asset’s revised carrying amount, less any residual value on a systematic basis
over its remaining useful life.
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arrangements. The following specific recognition criteria must also be met before revenue is
recognized:
Sale of Goods. Revenue from sale of goods is recognized at the point in time when control is
transferred to the customer, which is normally upon delivery. Sales returns and discounts are
deducted from sales to arrive at net sales shown in the consolidated statements of comprehensive
income.
Royalty Fees. Revenue from royalty fees is recognized as the royalty accrues based on certain
percentages of the franchisees’ net sales.
Set-up Fees. Revenue from set-up fees is recognized on a straight-basis over the term of the franchise
agreement and when performance obligations relating to the payment of set-up fees have been
satisfied.
System-wide Advertising Fees. Revenues consisting of reimbursements of network advertising and
promotional costs from franchisees are recognized upon performance of service.
Service Fees. Revenue is recognized in the period in which the service has been rendered.
Management Fees. Revenue is recognized in the period in which the administration services has been
rendered based on a certain percentage of the total costs incurred.
Other Revenues
The following specific recognition criteria must also be met before other revenue is recognized:
Rent Income. Rent income from short-term leases and leases of low-value asset is recognized on a
straight-line basis over the lease terms.
Interest Income. Interest income is recognized as the interest accrues, taking into account the
effective yield on the asset.
Other Income. Other income is recognized when there is an incidental economic benefit, other than
the usual business operations, that will flow to the Jollibee Group through an increase in asset or
reduction in liability and that can be measured reliably.
Cost and Expenses
Cost and expenses are decreases in economic benefits during the reporting period in the form of
outflows or decrease of assets or incurrence of liabilities that result in decreases in equity, other than
those relating to distributions to equity participants. Cost and expenses are recognized as incurred.
Advertising and promotion expenses include costs incurred for advertising schemes and promotional
activities for new products.
Pension Benefits
The pension liability or asset is the aggregate of the present value of the defined benefit obligation at
the end of the reporting period reduced by the fair value of plan assets (if any), adjusted for any effect
of limiting a net defined benefit asset to the asset ceiling. The asset ceiling is the present value of any
economic benefits available in the form of refunds from the plan or reductions in future contributions
to the plan.
The cost of providing benefits under the defined benefit plans is actuarially determined using the
projected unit credit method.
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Service costs which include current service costs, past service costs and gains or losses on non-
routine settlements are recognized as part of pension expense. Past service costs are recognized when
plan amendment or curtailment occurs. These amounts are calculated periodically by independent
qualified actuaries.
Net interest on the pension liability or asset is the change during the period in the liability or asset that
arises from the passage of time which is determined by applying the discount rate based on
government bonds to the pension liability or asset. Net interest on the pension liability or asset is
recognized under “Direct costs” and “General and administrative expenses” in the consolidated
statements of comprehensive income.
Remeasurements comprising of actuarial gains and losses, return on plan liability or assets and any
change in the effect of the asset ceiling (excluding net interest on defined benefit liability) are
recognized immediately in other comprehensive income in the period in which they arise.
Remeasurements are not reclassified to profit or loss in subsequent periods.
Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance
policies. Plan assets are not available to the creditors of the Jollibee Group, nor can they be paid
directly to the Jollibee Group. Fair value of plan assets is based on market price information. When
no market price is available, the fair value of plan assets is estimated by discounting expected future
cash flows using a discount rate that reflects both the risk associated with the plan assets and the
maturity or expected disposal date of those assets (or, if they have no maturity, the expected period
until the settlement of the related obligations). If the fair value of the plan assets is higher than the
present value of the defined benefit obligation, the measurement of the resulting defined benefit asset
is limited to the present value of economic benefits available in the form of refunds from the plan or
reductions in future contributions to the plan.
The Jollibee Group also participates in various government-defined contribution schemes for the
PRC-based and USA-based subsidiaries. Under these schemes, pension benefits of existing and
retired employees are guaranteed by the local pension benefit plan, and each subsidiary has no further
obligations beyond the annual contribution.
Share-based Payments
The Jollibee Group has stock option plans granting its management and employees an option to
purchase a fixed number of shares of stock at a stated price during a specified period (“equity-settled
transactions”).
The cost of the options granted to the Jollibee Group’s management and employees that becomes
vested is recognized in profit or loss over the period in which the performance and/or service
conditions are fulfilled, ending on the date on which the relevant management and employees become
fully entitled to the award (“vesting date”).
The fair value is determined using the Black-Scholes Option Pricing Model. The cumulative expense
recognized for the share-based transactions at each reporting date until the vesting date reflects the
extent to which the vesting period has expired and the Jollibee Group’s best estimate of the number of
equity instruments that will ultimately vest. The charge or credit in profit or loss or the investment
account for a period represents the movement in cumulative expense recognized as of the beginning
and end of that period.
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Where the terms of a share-based award are modified, at a minimum, an expense is recognized as if
the terms had not been modified. In addition, an expense is recognized for any modification, which
increases the total fair value of the share-based payment agreement, or is otherwise beneficial to the
management and employees as measured at the date of modification.
Where a share-based award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognized for the award is recognized immediately. However, if a new award is
substituted for the cancelled award, and designated as a replacement award on the date that it is
granted, the cancelled and new awards are treated as if there was a modification of the original award.
Leases
The Jollibee Group assesses at contract inception whether a contract is, or contains, a lease. That is,
if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.
Jollibee Group as Lessee. The Jollibee Group applies a single recognition and measurement
approach for all leases, except for short-term leases and leases of low-value assets. The Jollibee
Group recognizes lease liabilities to make lease payments and right-of-use assets representing the
right to use the underlying assets.
Right-of-Use Assets. The Jollibee Group recognizes right-of-use assets at the commencement
date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are
measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease
liabilities recognized, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. The cost of right-of-use assets also
includes an estimate of costs to be incurred by the lessee in dismantling and removing the
underlying asset to the condition required by the terms and conditions of the lease, unless those
costs are incurred to produce inventories. Unless the Jollibee Group is reasonably certain to
obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use
assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the
lease term. Right-of-use assets are subject to impairment.
Lease Liabilities. At the commencement date of the lease, the Jollibee Group recognizes lease
liabilities measured at the present value of lease payments to be made over the lease term. The
lease payments include fixed payments (including in-substance fixed payments) less any lease
incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The variable lease payments that do not
depend on an index or a rate are recognized as expense in the period on which the event or
condition that triggers the payment occurs.
In calculating the present value of lease payments, the Jollibee Group uses the incremental
borrowing rate (IBR) at the lease commencement date if the interest rate implicit in the lease is
not readily determinable. In determining the IBR, the Jollibee Group uses risk-free rate plus
credit spread where the credit spread is based on the credit risk of the lessee. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is
remeasured if there is a modification, a change in the lease term, a change in the in-substance
fixed lease payments or a change in the assessment to purchase the underlying asset.
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The Jollibee Group’s lease liabilities are included in interest-bearing loans and borrowings.
Short-term Leases and Leases of Low-value Assets. The Jollibee Group applies the short-term
lease recognition exemption to its short-term leases of QSR outlets. It also applies the lease of
low-value assets recognition exemption to leases that are considered of low value (i.e., below
USD5,000 or approximately = P250,000). Lease payments on short-term leases and leases of low-
value assets are recognized as expense on a straight-line basis over the lease term.
The functional currencies of the Jollibee Group’s foreign operations are US dollar (USD), PRC
Renminbi (RMB), Vietnam dong (VND), Singapore dollar (SGD), Malaysian ringgit (MYR),
Canadian dollar (CND), Euro, Pound (GBP), Hong Kong dollar (HKD), Indonesia rupiah (IDR),
Macau pataca (MOP) and New Taiwan dollar (TWD). As at the reporting date, the assets and
liabilities of foreign subsidiaries are translated into the presentation currency of the Parent Company
at the rate of exchange ruling at the reporting date while the income and expense accounts are
translated at the weighted average exchange rates for the year. The resulting translation differences
are included in equity under the account “Cumulative translation adjustments of foreign subsidiaries
and interests in joint ventures and associates.” On disposal of a foreign subsidiary, the accumulated
exchange differences are recognized in profit or loss.
Taxes
Current Tax. Current tax liabilities for the current and prior periods are measured at the amount
expected to be paid to the tax authority. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted at reporting date.
Current income tax relating to items recognized directly in equity is recognized in equity (not in the
profit or loss). Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.
Deferred Tax. Deferred tax is provided using balance sheet liability method, on all temporary
differences at reporting date between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes.
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Deferred tax assets are recognized for all deductible temporary differences and carryforward benefits
of unused tax credits from excess of minimum corporate income tax (MCIT) over regular corporate
income tax (RCIT) and net operating loss carryover (NOLCO), to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences and carry forward
benefits of excess of MCIT over RCIT and NOLCO can be utilized, except in certain circumstances
as provided in the standard, except:
where the deferred tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit; and,
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred tax assets to be utilized. Unrecognized deferred tax assets are reassessed at each
reporting date and are recognized to the extent that it has become probable that future taxable profit
will allow the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realized or the liability is settled, based on tax rates and tax laws that have been
enacted or substantially enacted at the reporting date. Deferred tax assets and liabilities are offset, if a
legally enforceable right exists to offset current tax assets against current tax liabilities and the
deferred taxes relate to the same taxable entity and the same taxation authority.
Value Added Tax (VAT). Revenues, expenses and assets are recognized net of the amount of VAT, if
applicable.
When VAT from sales of goods and/or services (output VAT) exceeds VAT passed on from
purchases of goods or services (input VAT), the excess is recognized as part of “Trade payables and
other current liabilities” account in the consolidated statement of financial position. When VAT
passed on from purchases of gods or services (input VAT) exceeds VAT from sales of goods and/or
services (output VAT), the excess is recognized as part of “Other current assets” account in the
consolidated statement of financial position.
Earnings per Share (EPS) Attributable to Equity Holders of the Parent Company
Basic EPS is calculated by dividing the net income for the year attributable to the equity holders of
the Parent Company, adjusted for the after-tax amounts of preferred dividends, by the weighted
average number of common shares outstanding during the year, after considering the retroactive
effect of stock dividend declaration, if any. The effect of cumulative distributions on perpetual
capital securities classified as equity in accordance with PAS 32, Financial Instruments:
Presentation, is deducted from net income attributable to equity holders of the Parent Company to
arrive at the adjusted amount.
Diluted EPS is computed by dividing the net income for the period attributable to the equity holders
of the Parent Company by the weighted average number of common shares outstanding during the
period, adjusted for any potential common shares resulting from the assumed exercise of outstanding
stock options. Outstanding stock options will have dilutive effect under the treasury stock method
only when the average market price of the underlying common share during the period exceeds the
exercise price of the option.
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Where the EPS effect of the shares to be issued to management and employees under the stock option
plan would be anti-dilutive, the basic and diluted EPS would be stated at the same amount.
Provisions
Provisions are recognized when the Jollibee Group has a present obligation (legal or constructive) as
a result of a past event, it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. If the effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market assessment of
the time value of money and, where appropriate, the risks specific to the liability. Where discounting
is used, the increase in the provision due to the passage of time is recognized as interest expense.
Business Segments
The Jollibee Group is organized and managed separately according to the nature of operations and
geographical locations of businesses. The three major operating businesses of the Jollibee Group are
food service, franchising and support services while geographical segments are segregated to
Philippine businesses and International businesses. These operating and geographical businesses are
the basis upon which the Jollibee Group reports its primary segment information presented in Note 5.
The preparation of the consolidated financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts in the consolidated financial statements
and related notes at the end of the reporting period. However, uncertainty about these assumptions
and estimates could result in outcomes that could require a material adjustment to the carrying
amount of the affected asset or liability in the future.
The Jollibee Group believes the following represents a summary of these significant judgments,
estimates and assumptions and the related impact and associated risks on the Jollibee Group’s
consolidated financial statements.
Judgments
In the process of applying the Jollibee Group’s accounting policies, management has made the
following judgments, apart from those involving estimations, which have the most significant effect
on the amounts recognized in the consolidated financial statements.
Revenue from Contracts with Customers – Determining the Timing of Satisfaction of Set-up Fees.
The Jollibee Group undertakes activities prior to store opening (e.g., initial training, site development,
systems set-up, etc.) as indicated in the franchise agreement. The Jollibee Group determines whether
these activities are capable of being distinct (i.e., whether the franchisee can benefit on each of these
activities on a standalone basis) and whether these activities are distinct within the context of the
franchise agreement (i.e., whether these activities can be separated from the franchise license granted
to the franchisee).
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The Jollibee Group determined that revenue from set-up fees should be recognized on a straight-line
basis over the term of the franchise agreement and when performance obligations relating to the
payment of set-up fees have been satisfied.
Principal versus Agent Consideration. The Jollibee Group’s agreement with the franchisee includes
the right to charge the franchisee its share in the Jollibee Group’s system-wide advertising and
marketing efforts as well as fees for the Jollibee Group’s administration of various advertisements,
network and media placements. The Jollibee Group determined that it is acting as principal for the
system-wide advertising because it is the Jollibee Group who retains the right to direct the service
provider of the advertisements, network and media placements, and has the discretion on how to price
the advertising fee charges. The Jollibee Group considers both the legal form and the substance of its
agreement to determine each party’s respective roles in the agreement.
Determining the Lease Term of Contracts with Renewal Options – Jollibee Group as Lessee. The
Jollibee Group determines the lease term as the non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any
periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.
The Jollibee Group has the option, under some of its leases to lease the assets for additional terms of
5 to 15 years. The Jollibee Group applies judgement in evaluating whether it is reasonably certain to
exercise the option to renew. That is, it considers all relevant factors that create an economic
incentive for it to exercise the renewal. After the commencement date, the Jollibee Group reassesses
the lease term if there is a significant event or change in circumstances that is within its control and
affects its ability to exercise (or not to exercise) the option to renew (e.g., a change in business
strategy). The Jollibee Group included the renewal period as part of the lease term for leases of QSR
outlets and warehouses due to the significance of these assets to its operations. These leases have a
short non-cancellable period (i.e., 5 to 10 years) and there will be a significant negative effect on
operations if a replacement is not readily available.
Assessing Joint Control of an Arrangement and the Type of Arrangement. Joint control is the
contractually agreed sharing of control of an arrangement which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control. The Jollibee Group
assessed that it has joint control in all joint arrangements by virtue of a contractual agreement with
other stockholders. The Jollibee Group’s joint ventures have separate legal entities and the
shareholders have right to their net assets (see Note 11).
Material Joint Ventures and Associates. The consolidated financial statements include additional
information about joint ventures and associates that are material to the Jollibee Group (see Note 11).
Management determined material joint ventures and associates as those joint ventures and associates
where the Jollibee Group’s carrying amount of investment is greater than 5% of the total interests in
joint ventures and investments in associates as at end of the period.
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Determination of Purchase Price Allocation. Management has measured the trademarks and other
intangible assets based on the valuation report prepared by the external valuation specialist and the
property and equipment that were acquired using the appraisal reports that were prepared by an
independent appraiser. The trademarks were valued using the relief-from-royalty method wherein the
fair value of trademarks is based on cost savings from owning the trademarks. Significant assumptions
and estimates used include comparable royalty rates, long-term growth rates, discount rates based on
available market data and revenue growth rate forecasts. The property and equipment were valued using
the replacement cost. Adjustments were made to replacement cost to reflect depreciation. The valuation
of other intangible assets was based on market values using income approach.
Recoverability of Trademarks, Goodwill and Other Intangible Assets. The Jollibee Group determines
whether trademarks, goodwill and other intangible assets with indefinite useful life is impaired at least on
an annual basis or more frequently if events or changes in circumstances indicate that the carrying value
may be impaired. This requires an estimation of the value in use of the CGU to which the goodwill is
allocated. Estimating the value in use requires the Jollibee Group to make an estimate of the expected net
sales, long-term growth rates and earnings before interest, taxes, depreciation and amortization
(EBITDA) from the CGU and also consider market data in determining discount rate in order to calculate
the present value of those cash flows.
Except for Pho24 trademark where Jollibee Group recognized impairment loss of = P463.1 million in 2022
because it closed its stores in the Philippines and discontinued its Pho24 business in 2023, management
has determined that trademarks, goodwill and other intangible assets are not impaired. The carrying
amount of trademarks, goodwill and other intangible assets amounted to P =51,926.6 million and
=51,715.5 million as at December 31, 2023 and 2022, respectively (see Note 14).
P
Recoverability of Interests in and Advances to Joint Ventures, Co-venturers and Associates. The Jollibee
Group performs impairment test of its interests in and advances to joint ventures, co-venturers and
associates when there are facts and circumstances indicating that their carrying amounts exceed their
recoverable amounts. Determining the recoverable amount of assets, which requires the determination of
future cash flows expected to be generated from the continued operations of joint ventures and associates,
requires the Jollibee Group to make significant assumptions that can materially affect the consolidated
financial statements. These assumptions include long-term growth rates, EBITDA and discount rate.
Future events could cause the Jollibee Group to conclude that the assets are impaired. Any resulting
impairment loss could have a material adverse impact on the Jollibee Group’s financial position and
performance.
The carrying amounts of interests in and advances to joint ventures, co-venturers and associates as at
December 31, 2023 and 2022 are as follows (see Note 11):
2023 2022
Interests in joint ventures P
=13,969,289 =11,580,165
P
Interests in associates 4,766,622 4,491,291
Advances to associates and a co-venturer 2,357,071 2,039,835
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Recognition of Deferred Income Tax Assets. The carrying amounts of deferred tax assets at each
reporting date is reviewed and reduced to the extent that sufficient taxable profits are available to allow
all or part of the deferred tax assets to be utilized. The Jollibee Group’s assessment on the recognition of
deferred tax assets is based on the forecasted taxable income taking into account the period in which the
deductible temporary differences can be claimed in the Philippines, PRC, USA, Europe, Singapore and
Malaysia. This forecast is based on assumptions that are affected by expected future market or economic
conditions and the expected future performance as well as management’s plans and strategies of the
relevant taxable entities, including the Parent Company and certain subsidiaries.
Impairment of Property, Plant and Equipment, Right-of-use Assets and Investment Properties. The
Jollibee Group performs impairment review of property, plant and equipment, right-of-use assets and
investment properties when certain impairment indicators are present. Management has identified store
closures and pre-termination of underlying lease agreements as impairment indicators and has performed
impairment assessment on its property, plant and equipment and right-of-use assets and has identified the
related lease pre-termination costs, if any.
Determining the fair value of assets, which requires the determination of future cash flows expected to be
generated from the continued use and ultimate disposition of such assets, requires the Jollibee Group to
make estimates and assumptions that can materially affect the consolidated financial statements. Future
events could cause the Jollibee Group to conclude that the assets are impaired. Any resulting impairment
loss could have a material adverse impact on the Jollibee Group’s financial position and performance.
Provision for impairment loss recognized on property, plant and equipment and right-of-use assets
amounted to =P160.4 million, =
P107.9 million and =
P44.4 million in 2023, 2022 and 2021, respectively.
Reversal of previously recognized impairment loss amounted to = P180.6 million,, =
P349.2 million and
P
=675.7 million in 2023, 2022 and 2021, respectively (see Notes 12, 22 and 29).
The aggregate carrying values of property, plant and equipment, right-of-use assets and investment
properties as at December 31, 2023 and 2022 are as follows:
2023 2022
Property, plant and equipment (see Note 12) P
=39,825,319 =36,485,718
P
Right-of-use assets (see Note 29) 44,966,055 42,078,013
Investment properties (see Note 13) 101,585 –
Impairment of Receivables and Contract Assets. The Jollibee Group uses a provision matrix to
calculate ECLs for its receivables and contract assets. The provision rates are based on days past due.
The provision matrix is initially based on the Jollibee Group’s historical observed default rates. The
Jollibee Group calibrates the matrix to adjust the historical credit loss experience with forward-
looking information. At every reporting date, the historical observed default rates are updated and
changes in the forward-looking estimates are analyzed.
The assessment of the correlation between historical observed default rates, forward-looking
information, and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in
circumstances and of forecast economic conditions. The Jollibee Group’s historical credit loss
experience and forecast of economic conditions may also not be representative of customers’ actual
default in the future.
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In determining the appropriate discount rate, management considers the interest rates of government
bonds that are denominated in the currency in which the benefits will be paid, with extrapolated
maturities corresponding to the expected duration of the defined benefit obligation. Future salary
increases are based on budgetary salary increases.
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Fair Value of Financial Assets and Liabilities. When the fair values of financial assets and financial
liabilities recorded or disclosed in the consolidated statement of financial position cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation
techniques, including the discounted cash flow model. The inputs to these models are taken from
observable markets where possible, but when this is not feasible, a degree of judgment is required in
establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments.
The fair value of financial assets and liabilities are discussed in Note 32.
Provisions and Contingencies. The Jollibee Group is involved in litigations, claims and disputes, and
regulatory assessments which are normal to its business. The estimate of the probable costs for the
resolution of these claims has been developed in consultation with the Jollibee Group’s legal counsels
and based upon an analysis of potential results (see Note 17). The inherent uncertainty over the
outcome of these matters is brought about by the differences in the interpretation and application of
laws and rulings. Management believes that the ultimate liability, if any, with respect to the
litigations, claims and disputes, and regulatory assessments will not materially affect the financial
position and performance of the Jollibee Group.
Total outstanding provisions amounted to =
P1,637.1 million and =
P1,601.3 million as at
December 31, 2023 and 2022, respectively (see Notes 17 and 30).
5. Segment Information
For management purposes, the Jollibee Group is organized into segments based on the nature of the
products and services offered and geographical locations. The Executive Management Committee
monitors the operating results of its segments separately for resource allocation and performance
assessment. Segment results are evaluated based on operating profit or loss and is measured
consistently with operating profit or loss in the consolidated financial statements.
Business Segments
The Jollibee Group’s operating businesses are organized and managed separately according to the
nature of the products and services provided, with each segment representing a strategic business unit
that offers different products and serves different markets.
The food service segment is involved in the operations of QSRs and the manufacture of food
products to be sold to Jollibee Group-owned and franchised QSR outlets.
The franchising segment is involved in the franchising of the Jollibee Group’s QSR store
concepts.
The support services segment is involved in providing various services mainly to the Jollibee
Group’s independent franchisees like but not limited to repairs and maintenance of store
equipment, staffing, helpdesk services and other business activities in support of the QSR
systems.
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The following tables present certain information on revenues, expenses and other segment
information of the different business segments for the years ended December 31, 2023, 2022 and
2021:
2023
Support
Food Service Franchising Services Eliminations Consolidated
Revenues from external customers P
= 227,035,697 P
=16,587,677 P
= 483,974 P
=– P
= 244,107,348
Inter-segment revenues 35,977,969 5,617,689 6,055,802 (47,651,460) –
Segment revenues 263,013,666 22,205,366 6,539,776 (47,651,460) 244,107,348
Segment expenses (261,146,732) (9,678,098) (6,127,901) 47,651,460 (229,301,271)
Provisions for impairment loss on receivables,
inventories, other current assets, property,
plant and equipment and right-of-use assets
– net of reversals (392,073) – – – (392,073)
Equity in net earnings of joint ventures and
associates – net 580,009 – – – 580,009
Other segment income – net 1,866,867 – – – 1,866,867
Segment result P
= 3,921,737 P
= 12,527,268 P
= 411,875 P
=– 16,860,880
2022
Support
Food Service Franchising Services Eliminations Consolidated
Revenues from external customers P197,436,005 =
= P14,158,863 =307,348
P =– P
P =211,902,216
Inter-segment revenues 31,330,117 5,565,429 7,309,091 (44,204,637) –
Segment revenues 228,766,122 19,724,292 7,616,439 (44,204,637) 211,902,216
Segment expenses (228,812,871) (8,965,002) (7,408,114) 44,204,637 (200,981,350)
Provisions for impairment loss on receivables,
inventories, other current assets, property,
plant and equipment and trademark
– net of reversals (979,495) – – – (979,495)
Equity in net earnings of joint ventures and
associates – net 4,062 – – – 4,062
Other segment income – net 5,271,583 – 398,127 – 5,669,710
Segment result =4,249,401
P P
=10,759,290 =606,452
P =–
P 15,615,143
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2021
Support
Food Service Franchising Services Eliminations Consolidated
Revenues from external customers P143,670,738
= P
=9,591,132 =313,720
P =– P
P =153,575,590
Inter-segment revenues 23,888,763 3,199,748 5,826,577 (32,915,088) –
Segment revenues 167,559,501 12,790,880 6,140,297 (32,915,088) 153,575,590
Segment expenses (169,515,241) (5,478,593) (5,674,558) 32,915,088 (147,753,304)
Reversals of impairment loss on receivables,
inventories, property, plant and equipment and
right-of-use assets – net of provisions 452,327 – – – 452,327
Equity in net losses of joint ventures and
associates – net (43,423) – – – (43,423)
Other segment income – net 3,893,018 – – – 3,893,018
Segment result =2,346,182
P P
=7,312,287 =465,739
P =–
P 10,124,208
The following tables present certain information on assets and liabilities and other segment
information of the different business segments as at December 31, 2023 and 2022:
2023
Support
Food Service Franchising Services Eliminations Consolidated
Assets and Liabilities
Segment assets P
= 236,497,363 P
=– P
= 252,789 =–
P P
= 236,750,152
Deferred tax assets – net 7,424,037 – 27 – 7,424,064
Consolidated assets P
= 243,921,400 P
=– P
= 252,816 =–
P P
= 244,174,216
Segment liabilities P
= 141,328,172 P
=– P
= 36,660 =–
P P
= 141,364,832
Deferred tax liabilities – net 3,625,931 – – – 3,625,931
Long-term debt – including current portion 12,617,043 – – – 12,617,043
Income tax payable 309,755 – – – 309,755
Consolidated liabilities P
= 157,880,901 P
=– P
= 36,660 =–
P P
= 157,917,561
2022
Support
Food Service Franchising Services Eliminations Consolidated
Assets and Liabilities
Segment assets =226,855,890
P =–
P =519,973
P =–
P =227,375,863
P
Deferred tax assets – net 6,021,482 – 5,360 – 6,026,842
Consolidated assets =232,877,372
P =–
P =525,333
P =–
P =233,402,705
P
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Geographical Segments
The Jollibee Group’s geographical segments are based on the location of the assets producing
revenues in the Philippines and in other locations which include PRC, USA, Canada, Vietnam,
Singapore, Malaysia, Italy, UK, UAE, Hongkong, Macau, Brunei and Taiwan. Sales to external
customers disclosed in the geographical segments are based on the geographical location of the
customers.
Majority of the Jollibee Group’s revenues were generated from the Philippines, which is the Parent
Company’s country of domicile.
The Jollibee Group does not have a single external customer with revenues amounting to 10% or
more of the Jollibee Group’s revenues.
The following tables present segment revenues, segment assets and capital expenditures of the
Jollibee Group’s geographical segments:
2023
Philippines International Eliminations Consolidated
Segment revenues P
=152,457,059 P
=93,452,384 (P
=1,802,095) P
=244,107,348
Segment assets 85,123,447 151,626,705 – 236,750,152
Capital expenditures 4,373,038 6,964,756 – 11,337,794
2022
Philippines International Eliminations Consolidated
Segment revenues =131,580,480
P =82,223,763
P (P
=1,902,027) =
P211,902,216
Segment assets 84,418,668 142,957,195 – 227,375,863
Capital expenditures 3,486,984 6,195,677 – 9,682,661
2021
Philippines International Eliminations Consolidated
Segment revenues =94,301,174
P =60,921,581
P (P
=1,647,165) =
P153,575,590
Segment assets 63,899,625 140,063,747 – 203,963,372
Capital expenditures 1,584,235 6,290,720 – 7,874,955
2023
Support
Revenue Source Food Service Franchising Services Total
Sale of goods =226,701,561
P =–
P =– =
P P226,701,561
Royalty fees – 12,089,063 – 12,089,063
Set-up fees – 438,205 – 438,205
System-wide advertising fees – 4,060,409 – 4,060,409
Service fees – – 463,890 463,890
Other revenues 334,136 – – 334,136
Total revenue from contracts with
customers =
P227,035,697 =
P16,587,677 P
=463,890 =
P244,087,264
Timing of recognition:
Goods transferred at a point in time =
P227,035,697
Services transferred over time 17,051,567
P
=244,087,264
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2022
Support
Revenue Source Food Service Franchising Services Total
Sale of goods =
P196,657,284 =
P– =
P– =P196,657,284
Royalty fees – 10,414,482 – 10,414,482
Set-up fees – 344,808 – 344,808
System-wide advertising fees – 3,399,573 – 3,399,573
Service fees 300,377 300,377
Other revenues 778,721 – – 778,721
Total revenue from contracts with
customers =
P197,436,005 =
P14,158,863 =
P300,377 =
P211,895,245
Timing of recognition:
Goods transferred at a point in time =
P197,436,005
Services transferred over time 14,459,240
=
P211,895,245
2021
Support
Revenue Source Food Service Franchising Services Total
Sale of goods =
P142,586,436 =
P– =
P– =P142,586,436
Royalty fees – 7,125,470 – 7,125,470
Set-up fees – 186,817 – 186,817
System-wide advertising fees – 2,278,845 – 2,278,845
Service fees – – 289,326 289,326
Other revenues 1,084,302 – – 1,084,302
Total revenue from contracts with
customers =
P143,670,738 =
P9,591,132 =
P289,326 =
P153,551,196
Timing of recognition:
Goods transferred at a point in time =
P143,670,738
Services transferred over time 9,880,458
=
P153,551,196
2023 2022
Cash on hand P
=401,355 P355,317
=
Cash in banks 17,294,487 17,396,445
Short-term deposits 15,536,646 11,117,517
P
=33,232,488 =28,869,279
P
Cash in banks earn interest at the respective savings or special demand deposit rates. Short-term
deposits are made for varying periods of up to three months depending on the immediate cash
requirements of the Jollibee Group, and earn interest at the respective short-term deposit rates.
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Short-term Investments
The Jollibee Group also has short-term investments amounting to =
P624.8 million and =
P619.2 million
as at December 31, 2023 and 2022, respectively. These pertain to deposits with maturities of more
than three months but less than a year.
Interest income earned from cash and cash equivalents and short-term investments amounted to
P
=755.5 million, =
P258.5 million and =
P77.0 million for the years ended December 31, 2023, 2022 and
2021, respectively (see Note 23).
2023 2022
Trade P
=6,549,315 =6,519,373
P
Less allowance for impairment loss 1,170,126 919,192
5,379,189 5,600,181
Receivable from retirement fund
(see Notes 25 and 27) 770,297 486,647
Advances to employees 706,276 1,816,156
Current portion of employee car plan receivables
(see Note 15) 62,158 46,359
Interest receivable 20,104 12,984
Others 93,498 105,222
7,031,522 8,067,549
Contract assets 1,535,894 1,559,886
P
=8,567,416 =9,627,435
P
Trade receivables are noninterest-bearing and are generally settled on a 14-day term. The
Jollibee Group classified accrued receivables as contract assets, which are billed and collected in
the next 12 months.
Receivable from retirement fund represents benefit payments made by the Jollibee Group for and
on behalf of the retirement plans. The receivable is noninterest-bearing.
Advances to employees, current portion of employee car plan receivables, interest and other
receivables are normally collectible within the next financial year.
Other receivables consist of receivables from the Social Security System (SSS) and insurance
claims.
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The movements in the allowance for impairment loss on trade receivables as at December 31 are as
follows:
2023 2022
Balance at beginning of year P
=919,192 =503,462
P
Provisions (see Note 22) 278,846 415,412
Write-offs (13,896) (15,013)
Reversals (see Note 22) (7,800) (4,136)
Translation adjustments (6,216) 19,467
Balance at end of year P
=1,170,126 =919,192
P
8. Inventories
2023 2022
At net realizable value:
Food supplies and processed inventories P
=11,177,602 =16,380,062
P
Novelty items 96,199 21,666
11,273,801 16,401,728
At cost -
Packaging, store and other supplies 1,066,405 895,920
Total inventories at lower of cost and net
realizable value P
=12,340,206 =17,297,648
P
The cost of food supplies and processed inventories, and novelty items carried at net realizable value
amounted to =P11,686.3 million and P
=137.0 million, respectively, as at December 31, 2023 and
P
=16,717.1 million and =
P127.3 million, respectively, as at December 31, 2022.
The movements in the allowance for inventory obsolescence as at December 31 are as follows:
2023 2022
Balance at beginning of year P
=442,711 =243,420
P
Provisions (see Note 22) 177,937 274,297
Reversals (see Note 22) (44,702) (49,311)
Write-offs (25,801) (27,791)
Translation adjustments (627) 2,096
Balance at end of year P
=549,518 =442,711
P
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2023 2022
Prepaid expenses:
Taxes P
=6,073,296 =5,584,394
P
Rent 970,816 949,990
Supplies 100,844 130,615
Insurance and others 1,103,495 906,463
Deposits to suppliers and other third parties 3,152,957 2,479,329
Current portion of security and other deposits
(see Note 15) 155,084 145,529
P
=11,556,492 =10,196,320
P
Prepaid taxes represent creditable withholding taxes that can be applied in the following year
against the corporate income tax due or can be claimed as tax refund from Tax Authorities. This
also includes prepaid real property and local business taxes which are expected to be utilized
within the next twelve months.
Prepaid rent pertains to short-term leases of store and office spaces that are paid in advance.
Supplies consist of various office and administrative supplies. Prepaid rent, insurance and others
are normally utilized within the next financial year.
Deposits to suppliers and other third parties are generally applied to purchase of inventories and
availment of services within the next financial year.
In 2015, the Parent Company entered into an agreement to develop a commercial and office
condominium building (the “Project”) in a parcel of its land in consideration for cash and
assigned units in the Project. The completion of the transaction is conditional upon fifty percent
(50%) completion of the Project, as certified by the general contractor of the Project, and when all
of the assigned units are fully constructed and accepted in accordance with the specifications
contained in the Agreed Design.
On April 29, 2022, upon execution of the Amendment to the Deed of Conditional Conveyance
and Deed of Conveyance, the Jollibee Group completed the exchange of its land asset with a fair
value of =
P2,401.6 million for condominium units in the Project.
In 2021, the Jollibee Group engaged property agents to start marketing all its land assets,
including improvements attached thereto, except for certain parcels of land assets to be
exchanged for shares of common stock of CentralHub (see Notes 11 and 12) and condominium
units. Three (3) of the parcels of land were sold in 2021 and based on market conditions, a sale
within 12 months is highly probable.
The lower of the carrying amount and fair value less costs to sell of all its land assets were
reclassified as held for sale presented as part of “Other current assets” as at December 31, 2021.
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The remaining fourteen (14) parcels of land were sold for a total cash consideration of
P
=2,768.2 million in 2022. Net gain arising from sale of land assets including improvements
attached thereto and from the exchange of land assets for condominium units amounted to
P
=3,923.4 million (see Note 23).
2023 2022
Investment in bond funds P
=7,853,800 =8,250,991
P
Investment in private equity fund 283,800 –
Investment in club shares 32,382 27,502
8,169,982 8,278,493
Less current portion 7,853,800 8,250,991
Noncurrent portion P
=316,182 =27,502
P
Unused proceeds from the issuance of senior perpetual securities in January 2020 and senior debt
securities in June 2020 totaling to USD759.8 million (P
=37,857.1 million) were invested by the
Jollibee Group in bond funds (see Notes 18 and 19).
In 2023 and 2022, JWPL redeemed bonds amounting to USD15.6 million (P =884.1 million) and
USD145.1 million (P=7,584.8 million), respectively. As at December 31, 2023 and 2022, remaining
balance in investment in bond funds, including interest and dividends earned, amounted to
USD141.8 million (P=7,853.8 million) and USD148.0 million (P =8,251.0 million), respectively.
Investment in club shares includes investment in shares of stocks of Tagaytay Highlands and other
golf and leisure clubs.
In July 2022, a share in golf club was sold for a cash consideration of =
P25.0 million resulting to a gain
of P
=3.5 million (see Note 23).
2023 2022
Balance at beginning of year P
=8,278,493 =14,453,134
P
Redemptions (884,127) (7,584,842)
Marked-to-market gain (loss) on financial assets at
FVTPL (see Note 23) 530,939 (1,053,738)
Additions 283,000 1,531,200
Disposal – (21,500)
Translation adjustment (39,123) 954,239
Balance at end of year P
=8,169,182 =8,278,493
P
The fair value of financial assets at FVTPL has been determined directly by reference to quoted
prices in active market or inputs other than quoted prices that are directly or indirectly observable.
*SGVFS187686*
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A. Business Combinations
Acquisition of MHL. On April 5, 2023, the Jollibee Group through GPPL, disclosed that it will
purchase a majority stake from the shareholders of Meko Holdings Limited (MHL), Jollibee brand’s
master franchisee in Hong Kong. GPPL will acquire 60% ownership for to USD16.1 million
(₱910.1 million) subject to adjustments. The remaining 40% will continue to be owned by the current
shareholders of MHL. Completion of this transaction is subject to the fulfillment of the agreed closing
conditions.
On September 1, 2023, GPPL completed the acquisition of 60% ownership in MHL under the same
terms as disclosed on April 5, 2023 for a total consideration of USD16.1 million (₱910.1 million).
GPPL paid a total cash consideration of USD14.1 million (P =796.9 million). In accordance with the
Purchase Agreement, the remaining amount of USD2.0 million (P =113.2 million), was withheld by the
Jollibee Group to recover for potential liabilities of MHL until August 31, 2024. This amount is
presented as part of “trade payables and other current liabilities and contract liabilities” in the
consolidated statements of financial position as at December 31, 2023.
The Jollibee Group included MHL in its financial consolidation starting September 1, 2023
(the “acquisition date”).
The fair value of the identifiable assets acquired, and liabilities assumed as at the date of the
acquisition were as follows:
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From the acquisition date, MHL contributed =P10.8 million net income to the Jollibee Group. If the
business combination had taken place at the beginning of 2023, contribution to consolidated revenues
and net income for the year would have been =P846.4 million and =
P60.7 million, respectively.
Acquisition of Milksha. On November 3, 2021, the Jollibee Group announced that it will purchase,
through its wholly owned subsidiary, JWPL a majority stake in the company that owns Milksha.
The Jollibee Group will purchase shares equivalent to 51% ownership in Milkshop International Inc.
(“Milksha”) for approximately USD12.8 million. One of the co-founders of Milksha will continue to
retain the 49% ownership. Completion of this transaction is subject to certain closing conditions, and
the final purchase price will be confirmed after closing.
On February 22, 2022, JWPL completed the acquisition of 51% ownership in Milksha under the same
terms as disclosed on November 3, 2021 for a total consideration of USD12.7 million
(P
=654.5 million). JWPL paid a total cash consideration of USD12.2 million (P =624.8 million). While
the remaining amount of USD0.5 million (P =27.7 million), in accordance with the purchase agreement,
was withheld by the Jollibee Group to recover for potential liabilities of Milksha until May 31, 2025.
This amount is presented as part of “trade payables and other current liabilities and contract
liabilities” in the consolidated statements of financial position.
The Jollibee Group included Milksha in its financial consolidation starting February 22, 2022 (the
“acquisition date”).
The fair value of the identifiable assets acquired, and liabilities assumed as at the date of the
acquisition were as follows:
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The goodwill of P
=170.7 million is attributable to synergies and other benefits from the acquisition of
Milksha.
From the acquisition date, Milksha contributed =P141.8 million net income to the Jollibee Group.
If the business combination had taken place at the beginning of 2022, contribution to consolidated
revenues and net income for the year would have been = P2,023.4 million and =P157.3 million,
respectively.
FCJB Foods Inc. (FCJB). On August 3, 2023, the Parent Company and Food Collective, Pte. Ltd.
(FCPL) announced the establishment of a joint venture that will own and operate Tiong Bahru Bakery
and Common Man Coffee Roaster brands in the Philippines.
The joint venture entity, incorporated as FCJB on August 29, 2023, is 60% owned by the Parent
Company and 40% owned by FCPL. Both companies have committed to invest up to = P250.0 million
to the joint venture. FCJB started operations on December 8, 2023.
Jolly USA Services Inc. (Jolly USA) and JBM LLC. On June 21, 2022, the Jollibee Group, through its
wholly owned subsidiary, JFC USA, incorporated Jolly USA and JBM LLC in the State of Delaware,
USA for the purpose of franchising the Jollibee brand in North America.
JWPL Management Co., Pte. Ltd. (JWPLM). On June 7, 2022, the Jollibee Group, through its wholly
owned subsidiary, JWPL, incorporated JWPLM to house the regional and head office activities and
centralize the administrative and subsidiary management offices. As at December 31, 2023, the
capital investment to JWPLM amounted to HKD0.5 million (P =3.5 million).
*SGVFS187686*
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Branch of JWPL Management Co., Pte. Ltd. (JWPLM HK). On July 19, 2022, a branch of JWPLM
was incorporated in Hong Kong. As at December 31, 2023, remittance from head office amounted to
HKD0.5 million (P=3.5 million).
Pinnacle Quality Food Inc. (PQF). On June 6, 2022, the Jollibee Group, through its wholly owned
subsidiary, Zenith, incorporated PQF to engage in, operate, conduct and maintain the business of
manufacturing, importing, buying, selling or otherwise undertaking in wholesale and retail of all
kinds of food products and any and all equipment, materials, supplies used or employed in or related
to the manufacture of such finished products; to engage, directly or indirectly, in the planting, raising,
culture, harvesting and processing of raw agricultural and fishery products into semi-processed or
finished products, the packaging and marketing of such products, and to engage in other farm
activities and practices. As at December 31, 2023 and 2022, the capital investment to PQF amounted
to =
P150.6 million and has not started commercial operations.
The Jollibee Group has subsidiaries with material non-controlling interests as provided below.
Proportion of equity interest held by non-controlling interests in 2023 and 2022 are as follows:
The summarized financial information of SuperFoods Group, SMCC-SG, GBPL, Milksha and MHL
in 2023, 2022 and 2021 are provided below. These information are based on amounts before
intercompany eliminations.
SuperFoods Group
2023 2022 2021
Revenues P
=9,049,127 =8,162,150
P =3,955,321
P
Net income (loss) 356,776 336,991 (505,385)
Other comprehensive loss (4,940) (37,822) (6,359)
Total comprehensive income (loss) 351,836 299,169 (511,744)
Total comprehensive income (loss)
attributable to non-controlling
interests 140,734 119,668 (204,698)
SMCC – SG
2023 2022 2021
Revenues P
=18,049,684 =16,833,441
P =12,499,163
P
Net loss (3,444,247) (499,101) (501,762)
Other comprehensive income (loss) 91,090 (923,517) (644,240)
Total comprehensive loss (3,353,157) (1,422,618) (1,146,002)
Total comprehensive loss
attributable to non-controlling
interests (670,631) (284,524) (229,200)
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GBPL
2023 2022 2021
Revenues P
=1,146,923 =1,446,668
P =1,379,310
P
Net income 50,013 54,365 123,183
Other comprehensive income 1,905 33,912 5,423
Total comprehensive income 51,918 88,277 128,606
Total comprehensive income
attributable to non-controlling
interests 20,767 35,311 51,442
Milksha
2023 2022
Revenues P
=2,127,378 P1,775,301
=
Net income 156,384 141,772
Other comprehensive loss (16,337) (3,595)
Total comprehensive income 140,047 138,177
Total comprehensive income
attributable to non-controlling
interests 68,623 67,707
MHL
2023
Revenues P
=512,369
Net income 1,796
Other comprehensive income 4,497
Total comprehensive income 6,293
Total comprehensive income
attributable to non-controlling
interests 2,517
SuperFoods Group
2023 2022
Current assets P
=1,116,943 =1,534,493
P
Noncurrent assets 7,221,973 4,961,547
Current liabilities 4,313,442 4,788,887
Noncurrent liabilities 3,553,038 1,572,592
Total equity 472,436 134,561
Equity attributable to non-controlling interests 188,974 53,824
SMCC – SG
2023 2022
Current assets P
=3,646,394 =4,245,218
P
Noncurrent assets 34,255,083 32,609,950
Current liabilities 25,720,613 22,773,806
Noncurrent liabilities 11,969,037 10,500,156
Total equity 211,827 3,581,206
Equity attributable to non-controlling interests (2,877,260) (2,211,086)
*SGVFS187686*
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GBPL
2023 2022
Current assets P
=364,602 =337,052
P
Noncurrent assets 298,217 389,057
Current liabilities 255,346 195,062
Noncurrent liabilities 131,581 264,640
Total equity 275,892 266,407
Equity attributable to non-controlling interests 110,357 106,563
Milksha
2023 2022
Current assets P
=910,139 =802,161
P
Noncurrent assets 175,865 187,838
Current liabilities 461,497 438,812
Noncurrent liabilities 79,752 146,927
Total equity 544,755 404,260
Equity attributable to non-controlling interests 266,930 198,087
MHL
2023
Current assets P
=180,946
Noncurrent assets 943,336
Current liabilities 523,494
Noncurrent liabilities 99,156
Total equity 501,632
Equity attributable to non-controlling interests 200,653
SuperFoods Group
2023 2022 2021
Net cash provided by (used in)
operating activities P
=835,371 =1,504,501
P (P
=329,512)
Net cash used in investing activities (1,631,426) (800,903) (329,353)
Net cash provided by (used in)
financing activities 327,180 (54,793) 50,859
Net increase (decrease) in cash and
cash equivalents (468,875) 648,805 (608,006)
SMCC-SG
2023 2022 2021
Net cash provided by operating
activities P
=760,812 =1,986,690
P P1,980,705
=
Net cash used in investing activities (1,820,796) (173,752) (1,084,153)
Net cash provided by (used in)
financing activities 364,756 (1,172,545) (1,739,183)
Net increase (decrease) in cash and
cash equivalents (695,228) 640,393 (842,631)
*SGVFS187686*
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GBPL
2023 2022 2021
Net cash provided by operating
activities P
=296,635 P305,821
= P280,227
=
Net cash used in investing activities (183,252) (186,414) (177,434)
Net cash used in financing
activities (82,920) (81,410) (71,330)
Net increase in cash and cash
equivalents 30,463 37,997 31,464
Milksha
2023 2022
Net cash provided by operating
activities P
=150,269 =242,848
P
Net cash used in investing activities (49,359) (36,187)
Net increase in cash and cash
equivalents 100,910 206,661
MHL
2023
Net cash provided by operating
activities P
=3,356
Net cash provided by investing
activities 1,914
Net cash provided by financing
activities 60,976
Net increase in cash and cash
equivalents 66,246
2023 2022
Interests in joint ventures:
Titan Dining LP P
=13,271,276 =10,905,903
P
Golden Bee Foods Restaurant LLC 392,247 342,774
JBPX Foods Inc. 217,017 245,304
Yoshinoya Jollibee Foods, Inc. 88,749 86,184
13,969,289 11,580,165
Interests in associates:
CentralHub Industrial Centers, Inc. 3,419,135 3,416,391
Tortazo LLC 725,227 618,379
C-Joy Poultry Meats Production, Inc. 434,633 273,684
Entrek (B) SDN BHD 197,205 172,402
C-Joy Poultry Realty, Inc. 20,151 17,247
Beeworks Food SDN. BHD. (29,729) (6,812)
4,766,622 4,491,291
Advances to associates and a co-venturer:
VTI Group 2,066,012 2,009,362
Beeworks Food SDN. BHD 75,538 30,473
Tortazo LLC 86,656 –
JBPX Foods Inc. 128,865 –
2,357,071 2,039,835
P
=21,092,982 =18,111,291
P
*SGVFS187686*
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Titan Dining LP (Titan). On May 23, 2018, JWPL, as a Limited Liability Partner, committed to
invest 45% of the total maximum fund of SGD100.0 million (P =3,749.0 million) in Titan, a private
equity fund that has executed (through a wholly-owned subsidiary) a binding agreement for the
acquisition of 100% of the Asia Pacific master franchise holder of the “Tim Ho Wan” brand, Tim Ho
Wan Pte. Ltd. and its affiliate Dim Sum Pte. Ltd., which owns and operates Tim Ho Wan stores in
Singapore.
The investment provides an opportunity for the Jollibee Group to have a significant interest in the
Tim Ho Wan franchise in the long-term.
On October 2, 2019, the total maximum fund of Titan increased from SGD100.0 million
(P
=3,749.0 million) to SGD200.0 million (P =7,498.0 million). As such, JWPL increased its capital
commitment to Titan from SGD45.0 million (P =1,687.1 million) to SGD120.0 million
(P
=4,498.8 million) which, when completed, JWPL’s investment will constitute 60% of the total
maximum fund. The increase in the total maximum fund and additional capital commitment of JWPL
are in furtherance of certain strategic projects undertaken by Titan, consistent with its mandate to
invest in the food service sector and grow strong Asia Pacific food service brands.
On October 30, 2020, JWPL acquired the 25% interest of a partner in Titan for a total cash
consideration of SGD36.3 million (P
=1,297.0 million). The acquisition increased JWPL’s interest in
Titan from 60% to 85%.
On August 11, 2021, JWPL acquired the 15% remaining interest of the other partners in Titan for a
total cash consideration of SGD71.6 million (P
=2,672.8 million). The acquisition increased JWPL’s
interest in Titan from 85% to 100%.
On November 1, 2021, the Limited Partnership Agreement for Titan was amended. As part of the
amendment, the fund size increased from SGD200.0 million (P =7,498.0 million) to SGD250.0 million
(P
=9,440.0 million) to fund working capital requirements of Tim Ho Wan and to facilitate completion
of other projects. Titan will also have additional investors who will take up a 10% participating
interest in Titan. With the increase in fund size and entry of additional investors, JWPL’s total
commitment to the fund shall amount to SGD225.0 million (P =8,496.0 million) comprising 90% of the
increased fund size and total commitments.
On September 28, 2022, the fund size of Titan increased from SGD250.0 million (P =9,440.0 million)
to SGD350.0 million (P=14,395.5 million) to fund the store expansion plans and working capital
requirements of Tim Ho Wan and to facilitate completion of other projects. With the increase in fund
size, JWPL’s total commitment to the fund shall amount to SGD315.0 million (P =12,956.0 million).
On September 29, 2022, JWPL made additional investment of SGD11.3 million (P =465.7 million)
proportionate to its participating interest in Titan. Subsequently, on February 24, 2023 and September
11, 2023, JWPL made additional investment of SGD9.0 million (P =371.5 million) and SGD39.2
million (P
=1,647.7 million), respectively, proportionate to its participating interest in Titan. As at
December 31, 2023 and 2022, JWPL has 90% interest in Titan.
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The details of the Jollibee Group’s participating interest in Titan as at December 31 are as follows:
2023 2022
Interest in a joint venture – cost:
Balance at beginning of year P
=10,767,706 =10,301,992
P
Additions during the year 2,019,233 465,714
Balance at end of year 12,786,939 10,767,706
Cumulative equity in net earnings:
Balance at beginning of year 138,197 200,259
Equity in net earnings (loss) during the year 346,140 (62,062)
Balance at end of year 484,337 138,197
P
=13,271,276 =10,905,903
P
Summarized financial information of Titan based on its financial statements and reconciliation with
the carrying amount of the investment in the consolidated financial statements are set out below:
2023 2022
Current assets P
=680,984 P240,693
=
Noncurrent assets 13,017,078 10,681,190
Total assets P
=13,698,062 =10,921,883
P
Current liabilities P
=24,993 =24,919
P
2023 2022
Cash and cash equivalents P
=679,813 =239,768
P
2023 2022
Net assets P
=13,673,069 =10,896,964
P
Proportion of the Jollibee Group’s ownership 90% 90%
12,305,762 9,807,268
Goodwill 2,336,248 2,066,596
Cumulative translation adjustments (1,370,734) (967,961)
P
=13,271,276 =10,905,903
P
Golden Bee Foods Restaurant LLC (Golden Bee). The Jollibee Group, through GPPL, has 49%
ownership in Golden Bee, a company that owns and operates the Jollibee brand in the United Arab
Emirates.
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The details of the Jollibee Group’s interest in the Golden Bee as at December 31 are as follows:
2023 2022
Interest in a joint venture – cost P
=33,926 =33,926
P
Cumulative equity in net earnings:
Balance at beginning of year 308,848 276,925
Equity in net earnings during the year 138,503 105,347
Dividends received (89,030) (73,424)
Balance at end of year 358,321 308,848
P
=392,247 =342,774
P
Summarized financial information of Golden Bee based on its financial statements and reconciliation
with the carrying amount of the investment in the consolidated financial statements are set out below:
2023 2022
Current assets P
=1,270,781 =1,202,337
P
Noncurrent assets 213,791 173,198
Total assets P
=1,484,572 =1,375,535
P
Current liabilities P
=523,818 =508,864
P
Noncurrent liabilities 88,663 87,659
Total liabilities P
=612,481 =596,523
P
2023 2022
Cash and cash equivalents P
=844,953 =681,718
P
The amounts of the income and expense accounts include the following:
2023 2022
Net assets P
=872,091 =779,012
P
Proportion of the Jollibee Group’s ownership 49% 49%
427,325 381,716
Cumulative translation adjustments (35,078) (38,942)
P
=392,247 =342,774
P
JBPX Foods Inc. (Panda Express). The Jollibee Group, through the Parent Company, has 50%
ownership in JBPX Foods Inc., a company that owns and operates the Panda Express brand in the
Philippines.
On November 11, 2022, the Parent Company made additional investment amounting to
=150.0 million proportionate to its ownership interest in Panda Express.
P
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The details of Jollibee Group’s interest in Panda Express as at December 31 are as follows:
2023 2022
Interest in a joint venture – cost:
Balance at beginning of year P
=281,750 =131,750
P
Additions during the year – 150,000
Balance at end of year 281,750 281,750
Cumulative equity in net losses:
Balance at beginning of year (36,446) (21,772)
Equity in net loss during the year (28,287) (14,674)
Balance at end of year (64,733) (36,446)
P
=217,017 =245,304
P
Summarized financial information of Panda Express based on its financial statements and
reconciliation with the carrying amount of the investment in the consolidated financial statements are
set out below:
2023 2022
Current assets P
=450,063 =409,198
P
Noncurrent assets 1,068,500 652,066
Total assets P
=1,518,563 =1,061,264
P
Current liabilities P
=326,634 =217,874
P
Noncurrent liabilities 757,895 352,782
Total liabilities P
=1,084,529 =570,656
P
2023 2022
Cash and cash equivalents P
=406,173 =376,851
P
Current financial liabilities (excluding trade
payables and other current liabilities and
provisions) 59,171 39,015
Noncurrent financial liabilities (excluding trade and
other payables and provisions) included above 757,833 352,782
The amounts of the income and expense accounts include the following:
2023 2022
Net assets P
=434,034 =490,608
P
Proportion of the Jollibee Group’s ownership 50% 50%
P
=217,017 =245,304
P
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Yoshinoya Jollibee Foods, Inc. (Yoshinoya). On February 15, 2021, the Jollibee Group, through the
Parent Company, entered into an agreement with Yoshinoya International Philippines, Inc. (YIPI) to
establish a joint venture entity to own and expand Yoshinoya restaurants in the Philippines.
The joint venture entity, incorporated as Yoshinoya Jollibee Foods, Inc. on June 18, 2021, is 50%
owned by the Parent Company and 50% owned by YIPI. On May 20, 2021, the Parent Company
made an initial investment amounting to = P65.0 million.
On October 29, 2021, Yoshinoya executed a Franchise Agreement with YIPI with effective date on
November 1, 2021. Subsequently, Yoshinoya acquired the store assets from YIPI and operated the
existing Yoshinoya stores in the Philippines.
On August 12, 2022, the Parent Company made an additional investment proportionate to its
ownership interest in Yoshinoya amounting to =
P30.0 million to partially fund the store expansion.
The details of Jollibee Group’s interest in Yoshinoya as at December 31 are as follows:
2023 2022
Interest in a joint venture – cost:
Balance at beginning of year P
=95,000 =65,000
P
Additions during the year – 30,000
Balance at end of year 95,000 95,000
Cumulative equity in net losses:
Balance at beginning of year (8,816) 1,289
Equity in net earnings (loss) during the year 2,565 (10,105)
Balance at end of year (6,251) (8,816)
P
=88,749 =86,184
P
Summarized financial information of Yoshinoya based on its financial statements and reconciliation
with the carrying amount of the investment in the consolidated financial statements are set out below:
2023 2022
Current assets P
=99,733 =117,950
P
Noncurrent assets 191,884 161,967
Total assets P
=291,617 =279,917
P
Current liabilities P
=72,792 =57,138
P
Noncurrent liabilities 41,327 50,412
Total liabilities P
=114,119 =107,550
P
2023 2022
Cash and cash equivalents P
=89,039 =109,954
P
Current financial liabilities (excluding trade
payables and other current liabilities and
provisions) 14,565 9,604
Noncurrent financial liabilities 41,327 50,412
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The amounts of the income and expense accounts include the following:
2023 2022
Net assets P
=177,498 =172,367
P
Proportion of the Jollibee Group’s ownership 50% 50%
P
=88,749 =86,184
P
Interests in Associates
CentralHub Industrial Centers, Inc. (CentralHub). On July 7, 2021, the BOD approved the plan to
invest in CentralHub, a company in the industrial real estate business. CentralHub intends to register
and operate as a Real Estate Investment Trust (REIT) company, with a planned initial public offering
on or before December 2024.
On August 19, 2021, the Parent Company, together with its wholly owned subsidiary, Zenith,
CentralHub and other investors entered into a Shareholder’s Agreement in connection with the
investments by the Jollibee Group and other investors in CentralHub, through a combination of cash
subscription and exchange of certain parcel of the Jollibee Group’s land assets, subject to fulfillment
of certain closing conditions, for shares of common stock of CentralHub (see Note 9). On the same
date, Jollibee Group paid cash subscription of =P1,922.9 million. Pending the application with and
approval by the Philippine SEC of the increase in authorized capital stock of CentralHub, the cash
subscription of the Jollibee Group was accounted for as deposits for future stock subscription (DFFS)
by the latter.
On September 3, 2021, the Philippine SEC approved the increase in authorized capital stock of
CentralHub and the conversion of DFFS to capital stock. Consequently, Jollibee Group owns 38.71%
ownership interest in CentralHub. On February 24, 2022, the Philippine SEC issued the confirmation
of valuation of such land assets amounting to = P2,089.4 million. On September 24, 2022, upon
fulfillment of all closing conditions as required by the Shareholders’ Agreement, the Jollibee Group
conveyed its land assets with a total fair value of P
=2,089.4 million for an additional 18.15%
ownership interest in CentralHub (see Note 12).
Consistent with the Shareholder’s Agreement and upon the other investors’ additional capital infusion
to CentralHub on April 29, 2022, the Jollibee Group’s ownership interest was diluted to 39.0%.
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2023 2022
Interest in an associate – cost:
Balance at beginning of year P
=3,390,073 =1,922,882
P
Additions during the year – 1,467,191
Balance at end of year 3,390,073 3,390,073
Cumulative equity in net earnings (losses):
Balance at beginning of year 26,318 (10,761)
Equity in net earnings during the year 2,744 37,079
Balance at end of year 29,062 26,318
P
=3,419,135 =3,416,391
P
Summarized financial information of CentralHub based on its financial statements and reconciliation
with the carrying amount of the investment in the consolidated financial statements are set out below:
2023 2022
Current assets ₱3,474,127 =3,457,648
P
Noncurrent assets 4,282,876 3,955,157
Total assets ₱7,757,003 =7,412,805
P
The amounts of the income and expense accounts include the following:
2023 2022
Net assets P
=6,977,429 =6,970,393
P
Proportion of the Jollibee Group’s ownership 39% 39%
2,721,197 2,718,453
Goodwill 697,938 697,938
₱3,419,135 =3,416,391
P
Tortazo LLC (Tortazo). The Jollibee Group, through JFC USA, has 52.22% ownership in Tortazo, a
company that owns and operates the Tortazo business – a Mexican fast-casual restaurant business in
the USA, founded by award-winning Chef Rick Bayless.
On July 31, 2022, the Jollibee Group made an additional investment proportionate to its ownership
interest in Tortazo amounting to USD2.2 million (P
=114.3 million) to fund working capital and capital
expenditures.
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On July 6, 2023, the Jollibee Group made an additional investment in Tortazo amounting to USD3.5
million (P
=195.2 million).
The additional investments increased the ownership interest of the Jollibee Group to 52.60%.
The details of the Jollibee Group’s interest in Tortazo as at December 31 are as follows:
2023 2022
Interest in an associate – cost:
Balance at beginning of year P
=782,988 =668,679
P
Additions during the year 195,242 114,309
Balance at end of year 978,230 782,988
Cumulative equity in net losses:
Balance at beginning of year (164,609) (78,514)
Equity in net loss during the year (88,394) (86,095)
Balance at end of year (253,003) (164,609)
P
=725,227 =618,379
P
Summarized financial information of Tortazo based on its financial statements and reconciliation with
the carrying amount of the investment in the consolidated financial statements are set out below:
2023 2022
Current assets P
=229,385 P81,709
=
Noncurrent assets 572,888 515,065
Total assets P
=802,273 =596,774
P
Current liabilities P
=138,263 =37,818
P
The amounts of the income and expense accounts include the following:
2023 2022
Net assets P
=664,010 =558,956
P
Proportion of the Jollibee Group’s ownership 52.60% 52.22%
349,269 291,887
Goodwill 381,532 381,532
Cumulative translation adjustments (5,574) (55,040)
P
=725,227 =618,379
P
C-Joy Poultry Meats Production, Inc. (C-Joy Poultry). The Parent Company has 30% ownership
interest in C-Joy Poultry, a company that operates a poultry processing plant in Sto. Tomas, Batangas,
Philippines.
On August 1, 2022, the Parent Company made an additional investment proportionate to its
ownership interest in C-Joy Poultry amounting to =P450.0 million to fund working capital.
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The details of Jollibee Group’s interest in C-Joy Poultry as at December 31 are as follows:
2023 2022
Interest in an associate – cost:
Balance at beginning of year P
=1,920,126 =1,470,126
P
Additions during the year – 450,000
Balance at end of year 1,920,126 1,920,126
Cumulative equity in net losses:
Balance at beginning of year (1,646,442) (1,649,214)
Equity in net earnings during the year 160,949 2,772
Balance at end of year (1,485,493) (1,646,442)
P
=434,633 =273,684
P
Summarized financial information of the C-Joy Poultry based on its financial statements and
reconciliation with the carrying amount of the investment in the consolidated financial statements are
set out below:
2023 2022
Current assets P
=2,367,899 =2,081,589
P
Noncurrent assets 2,028,622 2,054,899
Total Assets P
=4,396,521 =4,136,488
P
Current liabilities P
=2,819,212 =3,206,975
P
Noncurrent liabilities 128,532 17,234
Total liabilities P
=2,947,744 =3,224,209
P
The amounts of the income and expense accounts include the following:
2023 2022
Net assets P
=1,448,777 =912,279
P
Proportion of the Jollibee Group’s ownership 30% 30%
P
=434,633 =273,684
P
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Entrek (B) SDN BHD (Entrek). The Jollibee Group, through JIBL, has 1/3 or 33.3% ownership in
Entrek, a company that operates Jollibee stores in Brunei.
The details of the Jollibee Group’s interest in Entrek as at December 31 are as follows:
2023 2022
Interest in an associate – cost P
=16,660 =16,660
P
Cumulative equity in net earnings:
Balance at beginning of year 155,742 110,601
Equity in net earnings during the year 65,802 45,141
Dividends received (40,999) –
Balance at end of year 180,545 155,742
P
=197,205 =172,402
P
Summarized financial information of Entrek based on its financial statements and reconciliation with
the carrying amount of the investment in the consolidated financial statements are set out below:
2023 2022
Current assets P
=858,959 =675,330
P
Noncurrent assets 322,206 330,339
Total assets P
=1,181,165 =1,005,669
P
Current liabilities P
=622,578 =403,238
P
The amounts of the income and expense accounts include the following:
2023 2022
Net assets P
=558,587 =602,431
P
Proportion of the Jollibee Group’s ownership 33.33% 33.33%
186,196 200,810
Cumulative translation adjustments 11,009 (28,408)
P
=197,205 =172,402
P
C-Joy Poultry Realty, Inc. (C-Joy Realty). The Parent Company has 30% ownership interest in C-Joy
Realty, a company which leases the land where the C-Joy Poultry plant is located.
The details of the Jollibee Group’s interest in C-Joy Realty as at December 31 are as follows:
2023 2022
Interest in an associate – cost P
=10,586 =10,586
P
Cumulative equity in net earnings:
Balance at beginning of year 6,661 3,891
Equity in net earnings during the year 2,904 2,770
Balance at end of year 9,565 6,661
P
=20,151 =17,247
P
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Summarized financial information of C-Joy Realty based on its financial statements and
reconciliation with the carrying amount of the investment in the consolidated financial statements are
set out below:
2023 2022
Current assets P
=6,402 =12,857
P
Noncurrent assets 62,152 62,152
Total assets P
=68,554 =75,009
P
Current liabilities P
=1,383 P1,752
=
Noncurrent liabilities – 15,767
Total liabilities P
=1,383 =17,519
P
The amounts of the income and expense accounts include the following:
2023 2022
Net assets P
=67,171 =57,490
P
Proportion of the Jollibee Group’s ownership 30% 30%
P
=20,151 =17,247
P
Beeworks Food SDN. BHD. (Beeworks – West Malaysia). On July 29, 2021, the Jollibee Group,
through GPPL, entered into an agreement with Beeworks Investment Pte. Ltd. (BIPL) to own and
operate Jollibee stores in West Malaysia which covers the country’s capital, Kuala Lumpur. GPPL
and BIPL have committed to invest an initial amount of USD8.0 million (P =402.5 million) to
Beeworks – West Malaysia, of which up to USD2.4 million (P =120.7 million) will be contributed by
GPPL in proportion to its ownership interest. Beeworks – West Malaysia, under the Exclusive
License Agreement, will have the exclusive license rights to develop the Jollibee brand in West
Malaysia. It aims to open at least 120 stores within the next 10 years. Its first store started
commercial operations on February 8, 2022.
The agreement between GPPL and BIPL provides a mechanism wherein GPPL has the option, but not
the obligation, to purchase all BIPL’s shares in Beeworks – West Malaysia any time within one (1)
year from the expiration or termination of the Exclusive License Agreement.
Beeworks Foods SDN. BHD., incorporated on August 12, 2021, is 30% owned by GPPL and 70%
owned by BIPL.
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The details of the Jollibee Group’s interest in Beeworks – West Malaysia as at December 31 are as
follows:
2023 2022
Interest in an associate – cost P
=9,299 =9,299
P
Cumulative equity in net losses:
Balance at beginning of year (16,111) –
Equity in net loss during the year (22,917) (16,111)
Balance at end of year (39,028) (16,111)
(P
=29,729) (P
=6,812)
Summarized financial information of Beeworks – West Malaysia based on its financial statements
and reconciliation with the carrying amount of the investment in the consolidated financial statements
as at December 31are set out below:
2023 2022
Current assets ₱138,060 P43,174
=
Noncurrent assets 251,069 236,882
Total assets ₱389,129 =280,056
P
Current liabilities ₱110,733 =201,753
P
Noncurrent liabilities 375,991 101,600
Total liabilities ₱486,724 =303,353
P
The amounts of the income and expense accounts include the following:
2023 2022
Revenues ₱349,975 =132,635
P
Depreciation 36,310 10,691
Net loss (76,390) (53,704)
Total comprehensive loss (76,390) (53,704)
2023 2022
Net liabilities (₱97,595) (₱23,297)
Proportion of the Jollibee Group’s ownership 30% 30%
(29,279) (6,989)
Cumulative translation adjustments (450) 177
(₱29,729) (P
=6,812)
Advances to a Co-venturer
Advances to VTI Group. The details of the Jollibee Group’s advances to VTI Group as at
December 31 are as follows:
2023 2022
Balance at beginning of year P
=2,009,362 =1,783,911
P
Accrual of interest (see Note 23) 71,035 57,464
Translation adjustments and others (14,385) 167,987
Balance at end of year P
=2,066,012 =2,009,362
P
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On December 14, 2016, a loan of USD9.0 million (P =447.5 million) was extended to the VTI Group
with an interest rate of 3.5% per annum. The loan was agreed to be used for SuperFoods Group’s
capital needs. The loan is part of the total agreed loan of USD30.0 million payable in eight (8) years
from the first utilization date. On June 2, 2017, the additional loan of USD21.0 million
(P
=1,060.0 million) was granted to the VTI Group. The loan is secured by pledged shares in SFVT
and Blue Sky which will be released in proportion to the amount of the principal paid. Total interest
from this loan, recognized as interest income, amounted to USD1.3 million (P =71.0 million),
USD1.1 million (P =57.5 million) and USD1.1 million (P =51.9 million) in 2023, 2022 and 2021,
respectively (see Note 23).
Advances to Associates
Advances to Beeworks – West Malaysia. The details of the Jollibee Group’s advances to Beeworks –
West Malaysia as at December 31 are as follows:
2023 2022
Balance beginning of year P
=30,473 =–
P
Advances during the year 43,936 30,341
Accrual of interest (see Note 23) 1,894 335
Translation adjustments (765) (203)
Balance at end of year P
=75,538 =30,473
P
On May 11, 2022, the Jollibee Group, through GPPL, extended a 5-year loan to Beeworks – West
Malaysia amounting to MYR2.4 million (P =30.0 million) available in two (2) tranches subject to an
interest rate of 3.5% per annum. The first tranche amounting MYR1.2 million (P =15.0 million) was
issued on June 10, 2022. Subsequently, the second tranche amounting to MYR1.2 million
=15.3 million) was issued on September 1, 2022. The loan is payable in full on the 5th year from the
(P
date of the agreement.
On March 2, 2023, GPPL extended an 8-year loan amounting to MYR3.6 million (P =43.9 million),
available in two (2) tranches subject to an interest rate of 4.74% per annum. The first tranche
amounting MYR1.7 million (P =21.4 million) was issued on April 3, 2023. Subsequently, the second
tranche amounting to MYR1.9 million (P =22.5 million) was issued on October 31, 2023. The loan is
payable in full on the 8th year from date of agreement.
On February 9, 2023, the Jollibee Group, through JFC USA, extended a 1-year loan to Tortazo
amounting to USD0.7 million (P =37.6 million) subject to an interest rate of 6.0% per annum payable
on maturity date. Subsequently, on July 6, 2023, additional loan was granted amounting to
USD1.0 million (P=54.6 million) subject to an interest rate of 7.0% per annum payable on maturity
date.
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Advances to JBPX. On July 14, 2023, the Parent Company extended a loan to JBPX amounting to
₱125.0 million subject to a variable interest rate based on the sum of six (6) month PHP BVAL plus
spread of 0.7% to be repriced and paid semi-annually. The loan is payable in full on the 4th year from
the date of the agreement. In 2023, interest income from the loan amounted to ₱3.9 million
(see Note 23).
Pho24 Business. On May 10, 2023, the Jollibee Group disclosed that the SuperFoods Group which
owns Highlands Coffee and Pho24 signed agreements to transfer the assets of the Pho24 business to
East-West Restaurant Concepts. Pho24 operated fourteen (14) stores in Vietnam. The franchise
agreement for the operation of Pho24 stores in the Philippines was also terminated (see Note 14).
BGCC. On November 8, 2022, the Jollibee Group and Jasmine Asset Holdings, Ltd., announced the
termination of the Master Franchise Agreement for Dunkin’ Donuts and ceased the operations of
Beijing Golden Cup Food & Beverage Management Co., Ltd. (BGCC), which operated seven (7)
Dunkin’ Donuts restaurants in Beijing. Upon execution of the exit agreement on November 14, 2022,
P77.3 million was written-off. BGCC
the remaining balance of market entry fee amounting to =
completed its dissolution on July 19, 2023.
*SGVFS187686*
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2022
Plant,
Buildings,
Commercial Office, Store
Land and Condominium and Food Furniture
Land Units and Leasehold Processing and Transportation Construction
Improvements Improvements Improvements Equipment Fixtures Equipment in Progress Total
Cost
Balance at beginning of year =
P561,436 =
P8,764,708 =
P28,497,759 =
P26,670,549 =
P2,924,922 =
P648,062 =
P4,381,183 =
P72,448,619
Additions – 420,217 2,278,354 2,099,463 431,384 54,683 4,398,560 9,682,661
Condominium units in exchange for
land (see Note 9) – – – – – – 2,429,398 2,429,398
Retirements and disposals – (193,250) (1,608,687) (2,329,336) (213,619) (28,429) (138,909) (4,512,230)
Acquisition of a business
(see Note 11) – – – 29,813 – 923 – 30,736
Reclassifications (see Note 11) (494,042) 115,696 2,761,156 1,322,023 60,962 – (4,259,837) (494,042)
Translation adjustments 6,290 145,419 1,106,358 708,683 168,013 2,777 184,997 2,322,537
Balance at end of year 73,684 9,252,790 33,034,940 28,501,195 3,371,662 678,016 6,995,392 81,907,679
Construction in progress account mainly pertains to costs incurred for ongoing construction of
properties, including soon-to-open stores.
Management reassessed the recoverable amount of the Jollibee Group’s office, store and food
processing equipment and recognized a net provision amounting to =P110.6 million in 2023 and net
reversal of provision amounting to =
P154.4 million and =
P345.6 million in 2022 and 2021, respectively
(see Note 22). Consequently, allowance for impairment loss amounted to = P763.2 million and
=
P667.4 million as at December 31, 2023 and 2022, respectively.
On March 24, 2022, upon fulfillment of all closing conditions as required by the Shareholders’
Agreement, the Jollibee Group conveyed its land assets with a carrying value of =P494.0 million for a
fair value of =
P2,089.4 million to CentralHub in exchange for an additional 18.15% ownership interest
(see Note 11). Consequently, the exchange resulted to a gain to the extent of unrelated investors’
interest in the associate amounting to =
P973.2 million.
No property, plant and equipment as at December 31, 2023 and 2022 have been pledged as security
or collateral for the Jollibee Group’s debts.
This account consists of buildings and building improvements amounting to Php101.6 million as at
December 31, 2023 reclassified from property, plant and equipment account (see Note 12).
Rent income derived from income-generating properties amounted to nil, = P1.6 million and
P
=8.5 million in 2023, 2022 and 2021, respectively (see Notes 20 and 29).
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Operating costs relating to the investment properties which include maintenance expenses totaled to
nil, =
P10.7 million and =
P3.9 million in 2023, 2022 and 2021, respectively.
No investment properties as at December 31, 2023 and 2022 have been pledged as security or
collateral for the Jollibee Group’s debts.
2023 2022
Trademarks P
=35,445,794 =35,445,794
P
Goodwill 16,251,878 15,850,167
Computer software, net of accumulated amortization 196,576 252,125
Other intangible assets, net of accumulated
amortization 32,397 167,461
P
=51,926,645 =51,715,547
P
2023 2022
Trademarks:
CBTL P
=18,484,721 =18,484,721
P
Smashburger 10,414,000 10,414,000
Highlands Coffee 3,681,912 3,681,912
Mang Inasal 2,004,256 2,004,256
Milksha (see Note 11) 860,905 860,905
Total 35,445,794 35,445,794
Goodwill:
Smashburger 5,684,271 5,724,308
Hong Zhuang Yuan 2,928,856 3,015,109
SuperFoods Group 2,616,404 2,662,643
Mang Inasal 1,781,267 1,781,267
Red Ribbon Bakeshop:
Philippine operations 737,939 737,939
US operations 438,053 441,138
Yong He King 620,169 638,432
MHL (see Note 11) 605,236 –
Chowking US operations 490,516 493,971
GSC 176,330 179,446
Milksha (see Note 11) 167,592 170,669
Burger King 5,245 5,245
16,251,878 15,850,167
Trademarks and goodwill P
=51,697,672 =51,295,961
P
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The rollforward analysis of the Jollibee Group’s trademarks as at December 31 are as follows:
2023 2022
Cost
Balance at beginning of year P
=35,908,895 =35,047,990
P
Addition (see Note 11) – 860,905
Write-off (463,101) –
Balance at end of year 35,445,794 35,908,895
The rollforward analysis of the Jollibee Group’s goodwill as at December 31 are as follows:
2023 2022
Cost
Balance at beginning of year P
=14,566,386 =14,395,717
P
Addition (see Note 11) 605,236 170,669
Balance at end of year 15,171,622 14,566,386
Translation Adjustments
Balance at beginning of year 1,283,781 493,290
Translation adjustments of foreign subsidiaries (203,525) 790,491
Balance at end of year 1,080,256 1,283,781
Net Book Value P
=16,251,878 =15,850,167
P
Computer Software
The Jollibee Group’s computer software pertains to the Enterprise Resource Planning (ERP) system
which the Jollibee Group started to use on August 1, 2014 and cloud-based hosting arrangements and
implementation costs of CBTL.
The rollforward analysis of the Jollibee Group’s computer software as at December 31 are as follows:
2023 2022
Cost
Balance at beginning of year P
=907,354 =936,510
P
Additions 63,782 –
Write-off – (29,156)
Balance at end of year 971,136 907,354
Accumulated Amortization
Balance at beginning of year 660,820 575,330
Amortizations (see Note 22) 118,776 109,301
Write-off – (23,811)
Balance at end of year 779,596 660,820
Translation adjustment 5,036 5,591
Net Book Value P
=196,576 =252,125
P
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2023 2022
Cost
Balance at beginning and end of year P
=740,286 =740,286
P
Additions 1,809 –
Balance at end of year 742,095 740,286
Accumulated Amortization
Balance at beginning of year 562,247 359,373
Amortizations (see Note 22) 136,128 202,874
Balance at end of year 698,375 562,247
Translation adjustment (11,323) (10,578)
Net Book Value P
=32,397 =167,461
P
The calculation of value in use is most sensitive to the following assumptions which vary per
geographical location:
Long-term
Geographical Pre-tax Revenue
CGUs Location Discount Rate Growth Rate
Hong Zhuang Yuan PRC 12.1% 4.4%
Mang Inasal Philippines 13.9% 6.1%
Red Ribbon Bakeshop:
Philippine operations Philippines 13.9% 6.1%
US operations USA 13.7% 2.5%
Yong He King PRC 12.1% 4.4%
Chowking US operations USA 13.7% 2.5%
Burger King Philippines 13.9% 6.1%
GSC Vietnam 16.1% 6.3%
SuperFoods Group Vietnam 16.1% 6.3%
Smashburger USA 13.7% 2.5%
CBTL USA 12.3% 3.5%
Key assumptions with respect to the calculation of value in use of the groups of CGUs as at
December 31, 2023 used by management in its cash flow projections to undertake impairment testing
of goodwill are as follows:
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a) Discount rates - discount rates represent the current market assessment of the risks specific to
each group of CGUs, regarding the time value of money and individual risks of the underlying
assets which have not been incorporated in the cash flow estimates. The discount rate calculation
is based on the specific circumstances of the Jollibee Group’s group of CGUs, derived from the
weighted average cost of capital (WACC) of each group of CGUs. The WACC takes into
account both the cost of debt and equity. The cost of equity is calculated using the Capital Asset
Pricing Model (CAPM). The cost of debt is based on the assumed interest-bearing borrowings
each group of CGUs is obliged to service. CGU-specific risk is incorporated by applying
individual alpha and beta factors. The beta factors are evaluated annually based on publicly
available market data.
b) Long-term growth rates - rates are determined in consideration of historical and projected results,
as well as the economic environment where the group of CGUs operate.
c) EBITDA - is based on the most recent value achieved in the year preceding the start of the budget
period, and adjusted for planned efficiency improvement, if any.
In 2022, the Jollibee Group closed its Pho24 stores in the Philippines and discontinued its Pho24
business in 2023 (see Note 11). Management assessed that Pho24 trademark is impaired hence, the
Jollibee Group recognized a provision for impairment loss amounting to = P463.1 million in 2022 and
written-off in 2023 with the discontinuance of the Pho24 business. No impairment loss was
recognized in 2023.
2023 2022
Security and other deposits (see Notes 9, 31 and 32) P
=3,642,633 =3,481,197
P
Noncurrent portion of employee car plan receivables
(see Notes 7, 31 and 32) 121,907 84,329
Franchise rights - net of accumulated amortization
of P
=110.8 million and = P95.8 million in 2023 and
2022, respectively 68,464 49,688
Deferred compensation 22,759 14,661
Returnable containers and others 5,035 2,135
Tools and other assets 484,573 423,322
P
=4,345,371 =4,055,332
P
Security and other deposits generally represent deposits for leases entered into by the Jollibee
Group as lessee. The security deposits are recoverable from the lessors at the end of the lease
terms, which range from three to twenty years. These are carried at amortized cost. The discount
rates used range from 1.74%-14.02% and 1.28%-14.46% in 2023 and 2022, respectively. The
difference between the fair value at initial recognition and the notional amount of the security
deposits is recognized as right-of-use asset.
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Employee car plan receivables are presented at amortized cost. The difference between the fair
value at initial recognition and the notional amount of the employee car plan receivables is
recognized as “Deferred compensation” and is amortized on a straight-line basis over the credit
year.
Accretion of interest on security and other deposits and employee car plan receivables amounted
to =
P26.3 million and =P22.5 million in 2023 and 2022, respectively (see Note 23).
Franchise rights pertain to franchise fees paid by PERF entities to Burger King Asia Pacific for
the license to operate Burger King stores in the Philippines. Franchise rights are amortized over
ten (10) years.
2023 2022
Franchise Rights
Balance at beginning of year P
=145,483 =139,361
P
Additions 33,771 6,561
Write-off – (439)
Balance at end of year 179,254 145,483
Accumulated Amortization
Balance at beginning of year 95,795 83,375
Amortizations (see Note 22) 14,995 12,420
Balance at end of year 110,790 95,795
P
=68,464 =49,688
P
Tools and other assets represent tools for repairs and maintenance of office and store equipment
which are still unused as at December 31, 2023 and 2022.
16. Trade Payables and Other Current Liabilities and Contract Liabilities
2023 2022
Trade P
=18,628,725 =18,520,998
P
Accruals for:
Salaries, wages and employee benefits 5,077,099 4,393,978
Local taxes 3,500,937 1,636,632
Freight 1,789,427 1,294,265
Advertising and promotions 1,772,713 1,493,424
Store operations 1,699,345 1,918,879
Rent 1,384,043 1,675,708
Utilities 592,040 537,554
Interest (see Note 18) 542,234 522,926
Repairs and maintenance 488,149 516,454
Professional fees 259,719 272,353
Operating supplies 225,239 198,370
Security 208,612 186,326
(Forward)
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2023 2022
Insurance P
=77,471 =55,860
P
Communication 62,314 60,258
Transportation and travel 55,477 98,967
Trainings and seminars 10,799 4,304
Service fees and others 3,246,771 2,868,779
Customer deposits 1,052,183 1,155,150
Unearned revenue from gift certificates 764,319 614,745
Contractors’ retention 752,824 255,816
Dividends and distributions payable (see Note 19) 594,590 822,429
Staled checks 71,231 59,952
Other current liabilities 2,031,850 2,122,882
44,888,111 41,287,009
Contract liabilities 1,947,344 1,956,671
P
=46,835,455 ₱43,243,680
Trade payables to suppliers are noninterest-bearing and are normally settled on a 30 to 60-day
term.
Accrued expenses are noninterest-bearing and are normally settled within the next financial year.
Other accrued liabilities presented under “Service fees and others” consist of asset retirement
obligation and other miscellaneous expenses.
Customer deposits pertain to deposits from franchisees for sale of store assets and security
deposits from operating leases with franchisees which are refundable at the end of the lease term.
Other current liabilities consist of amounts withheld from the acquisition of Milksha and MHL
totalling to =
P140.9 million (see Note 11), payable for mascots and other liabilities expected to be
settled within the next financial year.
Contract liabilities pertain to deferred revenues and unearned revenues from gift certificates from
international operations.
Movements in contract liabilities arising from deferred revenues and unearned revenues from gift
certificates from international operations are as follows:
2023 2022
Balance at beginning of year P
=1,956,671 =1,424,799
P
Additions 2,392,521 2,712,902
Utilization and amortization (2,379,266) (2,247,122)
Write-off (14,267) (34,706)
Translation adjustments (8,315) 100,798
Balance at end of year P
=1,947,344 =1,956,671
P
The amount of contract liabilities arising from deferred revenues and unearned revenues from gift
certificates from international operations is expected to be earned within one year.
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17. Provisions
2023 2022
Balance at beginning of year P
=1,601,300 =1,035,636
P
Additions (see Note 23) 361,227 565,664
Reversals (see Note 23) (325,419) –
Balance at end of year 1,637,108 1,601,300
Current portion 237,835 685,530
Noncurrent portion P
=1,399,273 =915,770
P
The Jollibee Group’s outstanding provisions consist mainly of provisions for asserted claims which
are normal to the Jollibee Group’s business. These include estimates of legal services, settlement
amounts and other costs of claims made against the Jollibee Group. Other information on the claims
is not disclosed as this may prejudice the Jollibee Group’s position on such claims (see Note 30).
Short-term Debt
The short-term debt of the subsidiaries consists of the following:
Availment Date Maturity Date Interest Rate Condition 2023 2022
USD-
denominated
Loan 1 October 27, 2020/ September 24, 2021/ LIBOR plus spread; Unsecured = 830,550
P =557,600
P
May 8, 2023 March 24, 2022/ quarterly
March 24, 2023/ SOFR plus spread;
March 22, 2024 quarterly
Loan 2 April 15, 2022 February 3, 2023/ SOFR plus spread; Unsecured 1,661,100 1,672,800
February 2, 2024/ quarterly
January 31, 2025
Loan 3 February 2, 2023 - January 17, 2024/ SOFR plus spread; Unsecured 1,107,400 –
September 2023 January 16, 2025 quarterly
VND-
denominated
Loan 4 December 31, 2022 February 28, 2023 Non-interest bearing Unsecured – 21,218
PHP-
denominated
Loan 5 December 15, 2022 September 11, 2023/ 5.5% per annum Unsecured 1,000,000 2,000,000
March 8, 2024
SGD-
denominated
Loan 6 December 28, 2022/ December 28, 2023/ SORA plus spread; Unsecured 820,755 124,740
March 1, 2023/ July 3, 2024 quarterly
July 3, 2023
MYR-
denominated
Loan 7 September 15, 2023 September 15, 2024 KLIBOR plus spread; Unsecured 331,925 –
quarterly
= 5,751,730
P =4,376,358
P
LIBOR – London Interbank Offered Rate
SOFR – Secured Overnight Financing Rate
SORA – Singapore Overnight Rate Average
KLIBOR – Kuala Lumpur Interbank Offered Rate
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USD-denominated loans of SJBF. Loan 2 consists of a restated short-term uncommitted line of credit
agreement with a local bank in the US up to an aggregate amount of USD35.0 million
(P
=1,786.8 million) signed on February 3, 2022. The loan is subject to variable interest rate based on
CME Term SOFR plus spread determined by the bank and subject to quarterly repricing. The initial
drawdown was availed on April 15, 2022 amounting to USD10.0 million (P =549.8 million). The loan
is payable in three months from drawdown date and can be rolled over until February 3, 2023, the last
available date of the credit agreement. On August 30, 2022, SJBF requested to decrease the maximum
amount for uncommitted line of credit to USD30.0 million (P =1,531.5 million). Subsequent
drawdowns of USD10.0 million (P =586.3 million) each were made on July 1 and August 17, 2022.
On January 30, 2023, the last available date of the credit facility was extended until February 2, 2024
and was further extended until January 31, 2025. As at December 31, 2023 and 2022, the carrying
value of the loan amounted to USD30.0 million (P =1,661.1 million) and USD30.0 million
(P
=1,672.8 million), respectively.
Loan 3 consists of a restated short-term uncommitted line of credit agreement with a local bank in the
US up to an aggregate amount of USD20.0 million (P =1,092.4 million) signed on January 18, 2023.
Initial drawdown was made on February 2, 2023 amounting to USD5.0 million (P =271.8 million).
Subsequent drawdowns totaling to USD15.0 million (P =835.9 million) were availed in April to
September 2023. The loan is subject to variable interest rate based on CME Term SOFR plus spread
determined by the bank and subject to quarterly repricing. The loan is payable in six months from
drawdown date and can be rolled over until January 17, 2024, the maturity date. On January 26, 2024,
the credit facility was increased to USD30.0 million (P
=1,661.1 million) and extended until
January 17, 2025. As at December 31, 2023, the carrying value of the loan amounted to
USD20.0 million (P =1,107.4 million).
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Long-term Debt
The long-term debt consists of the following:
2023 2022
Principal P
=12,668,543 =16,338,349
P
Unamortized debt issue cost (51,500) (75,179)
P
=12,617,043 =16,263,170
P
(Forward)
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Subsidiary
Loan 16 May 8, 2019 May 8, 2026 BVAL plus spread Unsecured 497,500 696,428
Loan 17 October 6, 2021 October 7, 2026 BVAL plus spread Unsecured 2,237,250 2,982,750
Loan 18 October 6, 2021 October 8, 2026 Fixed Unsecured 745,750 994,250
12,617,043 16,263,170
VND-denominated Loans of SuperFoods Group. Loan 6 consists of a 5-year unsecured loan acquired
from a local bank in Vietnam amounting to VND232.0 billion (P =519.7 million) available in tranches
within twelve (12) months from September 27, 2021, the date of loan agreement. The loan is subject
to a variable interest rate based on the Bank’s three-month COF plus spread of 1.6%. The principal is
payable in sixteen (16) quarterly installments commencing on the 15th month from the date of
agreement. Initial drawdown amounting to VND9.4 billion (P =21.1 million) was availed on
January 7, 2022. Subsequent tranches amounting to a total of VND229.6 billion (P =549.2 million)
were availed in January to December 2022. As at December 31, 2023 and 2022, the carrying value of
the loan amounted to VND158.6 billion (P =367.9 million) and VND216.3 billion (P=510.6 million),
respectively.
Loan 7 consists of a 5-year facility agreement with a local bank in Vietnam up to an aggregate
amount of VND114.0 billion (P =285.6 million) available in tranches within twelve (12) months from
April 27, 2022, the agreement date. The loan is subject to a variable interest rate based on the Bank’s
Based Lending Rate (BLR) plus spread of 0.7% payable quarterly. The principal is payable in
seventeen (17) quarterly installments commencing on the 13th month from the first utilization date.
Initial drawdown amounting to VND9.6 billion (P =24.1 million) was availed on August 25, 2022.
Subsequent tranches amounting to VND24.8 billion (P =58.2 million) were availed in June to
July 2023. As at December 31, 2023 and 2022, the carrying value of the loan amounted to
VND30.4 billion (P=70.4 million) and VND9.6 billion (P =22.7 million), respectively.
Loan 8 consists of a 5-year facility agreement with a local bank in Vietnam up to an aggregate
amount of VND320.0 billion (P =736.9 million) available in tranches within twelve (12) months from
March 1, 2023, the agreement date. The loan is subject to a variable interest rate based on the Bank’s
COF plus spread of 1.5%. The principal is payable in sixteen (16) quarterly installments
commencing on the 15th month from the agreement date. Multiple drawdowns totaling to
VND320.0 billion (P =745.6 million) were availed in 2023. As at December 31, 2023, the carrying
value of the loan amounted to VND320.0 billion (P =742.4 million).
Loan 9 consists of a 5-year facility agreement with a local bank in Vietnam up to an aggregate
amount of VND108.0 billion (P =250.6 million) available in tranches within twelve (12) months from
December 1, 2023, the agreement date. The loan is subject to a variable interest rate based on the
Personal Savings Deposit rate plus spread of 2.5%. The principal is payable in sixteen (16) quarterly
*SGVFS187686*
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installments commencing on the 15th month from the first utilization date. Initial drawdown
amounting to VND33.0 billion (P=76.6 million) was availed on December 29, 2023. As at
December 31, 2023, the carrying value of the loan amounted to VND33.0 billion (P =76.6 million).
Loan 10 consists of a 5-year facility agreement with a local bank in Vietnam up to an aggregate
amount of VND79.5 billion (P =184.4 million) available in tranches within twelve (12) months from
December 1, 2023, the agreement date. The loan is subject to a variable interest rate based on the
Bank’s COF plus spread of 0.7%. The principal is payable in seventeen (17) quarterly installments
commencing on the 13th month from the first utilization date. Initial drawdown amounting to
VND3.2 billion (P=7.4 million) was availed on December 29, 2023. As at December 31, 2023, the
carrying value of the loan amounted to VND3.2 billion (P =7.4 million).
SGD-denominated Loan of CBTL-SG. Loan 11 consists of 3-year facility agreement with a local bank
in Singapore up to an aggregate amount of SGD13.0 million (P =547.2 million) available in tranches
within four (4) months from November 2, 2023, acceptance date of the agreement. The loan is
subject to variable interest rate based on SORA plus spread of 1.7% subject to quarterly repricing.
Initial drawdown amounting to SGD4.5 million (P =189.4 million) was availed on December 31, 2023.
As at December 31, 2023, the carrying value of the loan amounted to SGD4.4 million
(P
=189.4 million).
PHP-denominated Loans of the Parent Company. Loan 15 consists of a 5-year unsecured loan
acquired from a local bank on October 6, 2021 amounting to = P4,000.0 million split into two (2)
tranches. The first tranche is subject to a floating rate based on PHP BVAL Reference Rate for three
(3) months tenor plus spread of 0.75% or to an interest rate floor equal to the BSP Reverse
Repurchase Rate. The second tranche is subject to a fixed rate of 3.9765% per annum. The Parent
Company incurred debt issue cost of = P30.0 million, representing documentary stamp tax, in relation
to this loan. The principal is payable in equal quarterly installments commencing on the 6th quarter
from the drawdown date and every quarter thereafter until maturity. The carrying amount of the loan
amounted to = P2,983.0 million, net of unamortized debt issue cost of = P17.0 million, and
P
=3,977.0 million, net of unamortized debt issue cost of = P23.0 million, as at December 31, 2023 and
2022, respectively.
The Parent Company’s PHP denominated long-term debt (Loans 12 to 15) amounted to
=
P5,863.0 million, net of unamortized debt issue cost of =
P32.0 million, and =P8,826.4 million, net of
unamortized debt issue cost of =
P48.6 million, as at December 31, 2023 and 2022, respectively.
The current portion amounted to =P2,963.4 million and =P3,030.9 million, net of debt issue cost of
P
=16.6 million and =
P17.8 million as at December 31, 2023 and 2022, respectively.
PHP-denominated Loans of Zenith. Loan 17 consists of a 5-year unsecured loan acquired from a
local bank on October 6, 2021 amounting to = P3,000.0 million split into two (2) tranches. The first
tranche is subject to a floating rate based on PHP BVAL Reference Rate for three (3) months tenor
plus spread of 0.75% or to an interest rate floor equal to the BSP Reverse Repurchase Rate. The
second tranche is subject to a fixed rate of 3.9765% per annum. Zenith incurred debt issue cost of
P
=22.5 million, representing documentary stamp tax, in relation to this loan. The principal is payable
in equal quarterly installments commencing on the 6th quarter from the drawdown date and every
quarter thereafter until maturity. The carrying amount of the loan amounted to P =2,237.3 million, net
of unamortized debt issue cost of = P12.8 million, and =
P2,982.8 million, net of unamortized debt issue
cost of =
P17.2 million, as at December 31, 2023 and 2022, respectively.
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Loan 18 consists of a 5-year unsecured loan acquired from a local bank on October 6, 2021
amounting to =P1,000.0 million. The loan is subject to a fixed rate of 3.395% per annum. Zenith
incurred debt issue cost of =
P7.5 million, representing documentary stamp tax, in relation to this loan.
The principal is payable in equal quarterly installments commencing on the 6th quarter from the
drawdown date and every quarter thereafter until maturity. The carrying amount of the loan
amounted to =P745.8 million, net of unamortized debt issue cost of =P4.3 million, and =
P994.3 million,
net of unamortized debt issue cost of =
P5.8 million, as at December 31, 2023 and 2022, respectively.
The loans are guaranteed by the Parent Company. Consequently, the Parent Company is subject to
certain debt covenants which include, among others, maintaining Debt-to-Equity ratio, Debt-to-
EBITDA ratio and Debt-to-Service Coverage Ratio. The Parent Company is in compliance with the
applicable debt covenants as at December 31, 2023 and 2022.
The future expected principal settlements of the Jollibee Group’s loans follow:
2023 2022
2023 P
=– =4,712,007
P
2024 6,476,731 6,146,644
2025 3,540,994 3,324,027
2026 2,404,731 2,155,671
2027 199,687 –
2028 46,400 –
12,668,543 16,338,349
Less debt issue costs (51,500) (75,179)
P
=12,617,043 =16,263,170
P
Embedded Derivatives
Certain long-term loans of the Jollibee Group include provisions for an option to convert the variable
interest rate into a fixed interest rate. Certain long-term loans are also subject to an interest rate
floor. In addition, the Jollibee Group’s long-term loans generally provide an option to pre-pay the
loan in full before the maturity date.
The Jollibee Group assessed that the derivatives embedded in the loan contracts need not be
bifurcated since they are clearly and closely related to the economic characteristics and risks of the
host loan contract and do not qualify for separate accounting as at December 31, 2023 and 2022.
The proceeds from the issuance were used for general corporate purposes as well as fund initiatives of
the Jollibee Group (see Note 10).
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19. Equity
a. Preferred Stock
On September 24, 2021, the Philippine SEC approved the shelf registration in the Philippines of
20,000,000 cumulative, non-voting, non-participating, non-convertible, redeemable, peso-
denominated perpetual preferred shares to be offered within a period of three (3) years from the
date of effectivity of the registration statement and granted the Parent Company the permit to sell
8,000,000 preferred shares and an over subscription option of up to 4,000,000 preferred shares, at
an offer price of P
=1,000 per share in two (2) series: Preferred Shares-Series A and Series B with a
dividend rate of 3.2821% and 4.2405% per annum, respectively.
On October 14, 2021, the Parent Company issued Preferred Shares-Series A and Series B totaling
to 3,000,000 shares and 9,000,000 shares, respectively. The preferred shares were listed in the
Philippine Stock Exchange on the same day.
The total number of shareholders of the Parent Company for Preferred Shares-Series A and
Series B is 3 and 7, respectively, as at December 31, 2023 and 2022.
b. Common Stock
2023 2022
Authorized - =
P1 par value
Balance at beginning and end of year P
=1,430,000 =1,430,000
P
Issued and subscribed:
Balance at beginning of year P
=1,131,217 =1,124,342
P
Issuances during the year 1,114 8,884
Cancellation during the year – (2,009)
Balance at end of year P
=1,132,331 =1,131,217
P
Upon ratification of the January 26, 2005 resolution by the BOD on March 22, 2022, the Parent
Company cancelled the subscriptions receivable totaling to =P17.2 million; which P =2.0 million
pertains to common stock and = P15.2 million to additional paid-in capital in 2022.
The total number of shareholders for common shares of the Parent Company is 2,922 and 2,940
as at December 31, 2023 and 2022, respectively.
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c. Additional Paid-in-Capital
The movements in the additional paid in-capital pertain to the difference between the exercise
prices of stock options exercised and the par value of Parent Company’s shares. For the year
ended December 31, 2023 and 2022, stock options totaling 1,114,129 shares and 8,883,935
shares, respectively, were exercised (see Note 26). This resulted to an additional paid-in capital
amounting to =P207.9 million and =P1,589.0 million in 2023 and 2022, respectively.
The Parent Company recognized deferred tax assets on MSOP and ELTIP in additional paid-in
capital resulting to an increase of P
=9.3 million and P
=1.6 million in 2023 and 2022, respectively.
As at December 31, 2023 and 2022, total additional paid-in capital amounted to
P
=12,662.9 million and =
P12,091.8 million, respectively.
d. Treasury Shares
The Securities amounting to USD600.0 million (P =30,588.0 million) was issued by the Jollibee
Group, through JWPL, on January 23, 2020 and was listed in the Singapore Exchange Securities
Trading Limited (SGX-ST) on January 24, 2020. The Securities confer a right to receive a return
on the Securities (the “Distribution”) every Distribution Payment Date as described in the terms
and conditions of the Securities. These distributions are payable semi-annually in arrears on the
Distribution Payment Dates of each year. The Securities offered an initial distribution rate of
3.9%, noncallable in five (5) years and payable semi-annually. However, the Issuer may, at its
sole and absolute discretion, prior to any Distribution Payment Date, resolve to defer payment of
all or some of the Distribution which would otherwise be payable on that Distribution Payment
Date subject to exceptions enumerated in the terms and conditions of the Securities. The
Securities are perpetual securities in respect of which there is no fixed redemption date, but the
Issuer may, at its option change the status of the Securities or redeem the same on instances
defined under its terms and conditions. The Securities are unconditionally and irrevocably
guaranteed by the Parent Company.
The proceeds from issuance of the Securities were partially used to refinance the short-term debt
for the acquisition of CBTL while some were invested to bond funds (see Note 10).
The Securities are treated as equity as part of non-controlling interests in the consolidated
financial statements of the Jollibee Group because nothing in the terms and conditions of the
Securities gives rise to an obligation of the Jollibee Group to deliver cash or another financial
asset in the future as defined by PAS 32.
On October 4, 2021, JWPL announced the Tender Offer to the holders of the Securities to
purchase for cash up to USD250.0 million of the outstanding Securities on the official list of
SGX-ST. The Tender Offer to buy back up to USD250.0 million of the Securities will be funded
partly from the proceeds of the Parent Company’s issuance of 12,000,000 preferred shares under
its 20,000,000 preferred shares shelf registration.
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On October 21, 2021, the settlement of the Securities that have been validly tendered by holders
of Securities at the Early Tender Time, not validly withdrawn and accepted for payment pursuant
to the Tender Offer, has been completed. As at Early Settlement Date, USD203.1 million
(P
=10,303.0 million) in aggregate principal amount of Securities has been repurchased and
cancelled.
On November 8, 2021, after the Early Tender Time but at or prior to the Expiration Deadline,
holders of Securities validly tendered and JWPL accepted the purchase of USD0.4 million
(P
=20.2 million) and cancelled the Securities on the same date.
As at December 31, 2023 and 2022, the Securities amounted to USD396.5 million
(P
=20,264.8 million).
The amount of excess of cost over the carrying value of non-controlling interests acquired as at
December 31, 2023 and 2022, recognized as part of “Equity Attributable to Equity Holders of the
Parent Company” section in the consolidated statements of financial position, resulted from the
following acquisitions of non-controlling interests:
g. Retained Earnings
The Jollibee Group has a cash dividend policy of declaring one-third of the Jollibee Group’s net
income for the year as cash dividends payable to all common stockholders. It uses best estimate
of its net income as basis for declaring cash dividends. Actual cash dividends per share declared
as a percentage of the EPS are 30.9%, 35.9% and 31.5% in 2023, 2022 and 2021, respectively.
Preferred Shares-Series A and Series B shareholders, subject to the discretion of the BOD to the
extent permitted by law, are entitled to dividends. If cash dividends are declared, cash dividends
shall be as follows:
Preferred Shares-Series A shall be at the fixed rate of 3.2821% per annum; and,
Preferred Shares-Series B shall be at the fixed rate of 4.2405% per annum.
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The Parent Company’s cash dividend declarations for 2023, 2022 and 2021 follow:
Cash Dividend Total Cash
Declaration Date Record Date Payment Date per Share Dividends Declared
(In Thousands, except dividend per share)
2023
Common Shares
April 17 May 3 May 22 P1.07
= P
=1,193,241
November 10 November 24 December 11 1.23 1,372,451
₱2.30 ₱2,565,692
Preferred Shares-Series A
March 14 March 29 April 14 P8.21
= P24,616
=
June 16 July 4 July 14 8.21 24,616
September 19 October 4 October 16 8.21 24,616
December 15 January 3 January 15 8.21 24,616
₱32.84 ₱98,464
Preferred Shares-Series B
March 14 March 29 April 14 P10.60
= P95,411
=
June 16 July 4 July 14 10.60 95,411
September 19 October 4 October 16 10.60 95,411
December 15 January 3 January 15 10.60 95,411
₱42.40 ₱381,644
2022
Common Shares
April 19 May 5 May 19 P1.07
= P1,185,021
=
November 8 November 23 December 14 1.23 1,371,074
=2.30
P =2,556,095
P
Preferred Shares-Series A
March 14 March 29 April 18 P8.21
= P24,616
=
April 19 June 22 July 14 8.21 24,616
April 19 September 21 October 14 8.21 24,616
November 8 December 20 January 13, 2023 8.21 24,616
=32.84
P =98,464
P
Preferred Shares-Series B
March 14 March 29 April 18 P10.60
= P95,411
=
April 19 June 22 July 14 10.60 95,411
April 19 September 21 October 14 10.60 95,411
November 8 December 20 January 13, 2023 10.60 95,411
=42.40
P =381,644
P
2021
Common Shares
April 8 April 26 May 12 P0.78
= P861,054
=
November 8 November 23 December 14 0.89 984,025
=1.67
P =1,845,079
P
Preferred Shares-Series A
December 7 December 23 January 14, 2022 =8.21
P =24,616
P
Preferred Shares-Series B
December 7 December 23 January 14, 2022 =10.60
P =95,411
P
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An important part of the Jollibee Group’s growth strategy is the acquisition of new businesses in
the Philippines and abroad. Examples were acquisitions of 85% of Yonghe King in 2004 in PRC
(P
=1,200.0 million), 100% of Red Ribbon in 2005 (P =1,700.0 million), the remaining 20% minority
share in Greenwich in 2006 (P =384.0 million), the remaining 15% share of Yonghe King in 2007
(P
=413.7 million), 100% of Hong Zhuang Yuan restaurant chain in PRC in 2008
(P
=2,600.0 million), 70% of Mang Inasal in 2010 (P =2,976.2 million), 100% of Chowking US
operations in 2011 (P
=693.3 million), 40% of SJBF LLC, the parent company of the entities
comprising the Smashburger business in US (P =4,812.8 million), including transaction costs in
2015, the remaining 30% minority share each in Mang Inasal (P =2,000.0 million) and HBFPPL
(P
=514.9 million), acquisition of GSC (P=8.6 million) in 2016, the acquisition of additional 10%
share in SuperFoods Group (P =2,712.7 million) in 2017, acquisition of the remaining 60% share in
SJBF LLC (P =5,735.8 million) in 2018, acquisition of 80% of The Coffee Bean & Tea Leaf
(P
=17,098.7 million) in 2019, the remaining 30% minority share in Smashburger Long Island
(P
=95.8 million) in 2020, acquisition of 51% of Milksha (P=654.5 million) in 2022 and acquisition
of 60% stake of MHL (P =910.1 million) in 2023.
The Jollibee Group plans to continue to make substantial acquisitions in the coming years. The
Jollibee Group uses its cash generated from operations to finance these acquisitions and capital
expenditures. These limit the amount of cash dividends that it can declare and pay.
On December 7, 2021, the BOD approved the appropriation of = P18,700.0 million from the Parent
Company’s unappropriated retained earnings for capital expenditures in 2022. Consequently,
appropriated retained earnings for capital expenditures amounted to =
P18,700.0 million as at
December 31, 2023 and 2022.
The unappropriated retained earnings of the Parent Company is also restricted to the extent of
cost of common stock held in treasury amounting to =P180.5 million as at December 31, 2023 and
2022. The unappropriated retained earnings of the Jollibee Group includes accumulated losses
from its subsidiaries.
The Parent Company’s retained earnings available for dividend declaration, computed based on
the guidelines provided in SEC Memorandum Circular No. 11, amounted to = P32,701.2 million
and P
=25,621.1 million as at December 31, 2023 and 2022, respectively.
In relation with the Securities Regulation Code, below is the summary of the Parent Company’s
track record of registration of securities.
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The Jollibee Group has existing Royalty and Service Agreements with independent franchisees for
the latter to operate quick service restaurant outlets under the “Jollibee”, “Greenwich”, “Chowking”,
“Yong He King”, “Red Ribbon”, “Hong Zhuang Yuan”, “Mang Inasal”, “Highlands Coffee”,
“Smashburger”, “The Coffee Bean & Tea Leaf” and “Milksha” concepts and trade names. In
consideration thereof, the franchisees agree to pay set-up fees and monthly royalty fees equivalent to
a certain percentage of the franchisees’ net sales.
The Jollibee Group’s franchisees pay service fees for various services, including repairs and
maintenance services, rendered by the Jollibee Group’s personnel.
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In the normal course of business, the Jollibee Group accrues liabilities based on management’s best
estimate of costs incurred, particularly in cases when the Jollibee Group has not yet received final
billings from suppliers and vendors. There are also ongoing negotiations and reconciliations with
suppliers and vendors on certain liabilities recorded. These balances are continuously reviewed by
management and are adjusted based on these reviews, resulting to write-off of certain liabilities as
other income.
Insurance claims and others include claims from insurance settlements, gain from asset sale of Pho24
and others (see Note 11).
The Jollibee Group’s provision for current income tax consists of the following:
RCIT consists of corporate income taxes from the Jollibee Group’s operations in the Philippines,
PRC, USA, Vietnam, and Singapore.
For the years ended December 31, 2023 and 2022, Grandworth, a wholly-owned subsidiary, elected
to use OSD in computing for its taxable income. The net tax benefit from the availment of OSD
amounted to =P0.7 million and =
P31.7 million in 2023 and 2022, respectively.
The components of the Jollibee Group’s recognized net deferred tax assets as at December 31 follow:
2023 2022
Deferred tax assets:
Lease liabilities P
=7,754,947 =8,998,337
P
NOLCO:
USA-based entities 4,072,586 3,496,122
PRC-based entities 613,432 557,617
Europe-based entities 37,461 35,703
Hungary-based entity – 772,564
Singapore-based entity – 15,866
Accrued expenses 800,393 138,319
Pension liability and other benefits 552,564 442,462
Accumulated impairment loss in value of
receivables, inventories, property, plant and
equipment and other nonfinancial assets 399,916 363,068
(Forward)
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2023 2022
Unrealized foreign exchange loss P
=335,756 =145,326
P
Accrued benefit liability and bonus 333,217 265,720
Provision 322,551 146,114
MSOP and ELTIP 149,279 91,312
Contract revenue 120,223 66,923
Unaccreted discount on security deposits and
employee car plan receivables 18,190 23,589
Unamortized past service costs 7,004 3,579
Capital allowance 3,998 116,619
Excess of MCIT over RCIT – 50,167
Others 457 161
15,521,974 15,729,568
Deferred tax liabilities:
Right-of-use assets 6,445,736 7,731,681
Excess of fair value over book value of
identifiable assets of acquired businesses 1,119,582 1,582,444
Unrealized foreign exchange gain 307,324 152,908
Operating lease receivables 176,832 189,899
Unaccreted discount on employee car plan
receivables and security deposits 24,719 12,386
Prepaid rent 11,292 14,025
Deferred rent expense 9,677 16,635
Unrealized gain on change in fair value of
financial assets at FVTPL 2,748 2,748
8,097,910 9,702,726
Deferred tax assets - net P
=7,424,064 =6,026,842
P
The components of the Jollibee Group’s recognized net deferred tax liabilities as at December 31
follow:
2023 2022
Deferred tax assets:
Lease liabilities P
=4,541,661 =2,554,306
P
Capital allowance 216,631 –
NOLCO:
USA-based entity 41,371 28,554
Singapore-based entity 16,060 –
Contract revenue 43,231 –
Pension liability and other benefits 24,690 25,465
Allowance for impairment loss on receivables,
inventories and property, plant and
equipment 20,044 20,010
Accrued bonus 12,981 10,685
MSOP and ELTIP 6,734 3,710
Unamortized past service costs 6,316 178
Accrued expenses 6,144 79,752
(Forward)
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2023 2022
Unaccreted discount on security deposits and
employee car plan receivables P
=347 =399
P
Unrealized foreign exchange loss 73 8
4,936,283 2,723,067
Deferred tax liabilities:
Excess of fair value over book value of
identifiable assets of acquired businesses 4,334,747 3,668,255
Right-of-use assets 4,226,385 2,401,074
Unaccreted discount on employee car plan
receivables, security and product security
deposits 1,082 676
Finance lease receivables – 6,070
8,562,214 6,076,075
Deferred tax liabilities - net P
=3,625,931 =3,353,008
P
The rollforward analysis of the net deferred tax assets and liabilities of the Jollibee Group follows:
2023 2022
Balance at beginning of year P
=2,673,834 =3,446,142
P
Income tax effect to profit or loss 1,084,206 (334,367)
Income tax effect of remeasurements of net
defined benefit plan 98,934 (149,153)
Tax effect of MSOP and ELTIP 9,348 1,595
Income tax effect arising from business acquisition
(see Note 11) (5,838) (172,181)
Translation adjustments (62,351) (118,202)
Balance at end of year P
=3,798,133 =2,673,834
P
OSD
The availment of the OSD method also affected the recognition of several deferred tax assets and
liabilities. Deferred tax assets and liabilities, for which the related income and expense are not
considered in determining gross income for income tax purposes, are not recognized. This is because
the manner by which the Jollibee Group expects to recover or settle the underlying assets and
liabilities, for which the deferred tax assets and liabilities were initially recognized, would not result
to any future tax consequence under the OSD method. Meanwhile, deferred tax assets and liabilities,
for which the related income and expense are considered in determining gross income for income tax
purposes, are recognized only to the extent of their future tax consequence under the OSD method.
Hence, the tax base of these deferred tax assets and liabilities is reduced by the 40% allowable
deduction provided for under the OSD method.
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Accordingly, the Jollibee Group’s deferred tax assets and liabilities, which were not recognized due
to the use of the OSD method, are as follows:
2023 2022
Deferred tax assets:
Allowance for impairment loss on receivables
and nonfinancial assets P
=4,449 =4,449
P
Customer deposits 92 5
Unaccreted discount on financial instruments and
others 33 33
Lease liabilities – 3,497
4,574 7,984
Deferred tax liabilities:
Finance lease receivables – 4,047
Others 59 52
59 4,099
Deferred tax assets - net P
=4,515 =3,885
P
As at December 31, 2023 and 2022, Excess of MCIT over RCIT of a Philippine-based entity incurred
in 2021 that can be claimed as deduction from income tax due up to December 31, 2024 amounted to
nil and =
P50.2 million, respectively.
As at December 31, 2023 and 2022, the component of deferred tax assets of the Philippine-based
subsidiaries which were not recognized as it is not probable that taxable income will be sufficient
against which they can be utilized are as follows:
2023 2022
NOLCO P
=2,592,798 =2,105,914
P
Excess MCIT over RCIT 244,031 150,530
Contract liability on set-up fees – 66,938
P
=2,836,829 =2,323,382
P
The PRC enterprise income tax law provides that income tax rates are unified at 25%. As at
December 31, 2023, NOLCO of the PRC-based entities that can be claimed as deductions from
taxable income are as follows:
Deferred Tax
Year Incurred Carryforward Benefit Up to Tax Losses at 25%
2023 December 31, 2028 =399,660
P =99,915
P
2022 December 31, 2027 1,156,172 289,043
2021 December 31, 2026 152,948 38,237
2020 December 31, 2028 809,880 202,470
2019 December 31, 2024 66,508 16,627
2018 December 31, 2023 44,956 11,239
2,630,124 657,531
Write-off and expirations (107,176) (26,794)
Utilization during the year (5,416) (1,354)
Translation adjustments (63,804) (15,951)
=2,453,728
P =613,432
P
As provided in Article 4 of the Announcement of the Ministry of Finance and the State
Administration of Taxation No. 8 of 2020, the maximum carryforward year for losses incurred by
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enterprises in difficult industries greatly affected by the pandemic in 2020 is extended from five (5)
years to eight (8) years.
As at December 31, 2023, NOLCO of the USA-based entities that can be claimed as deductions from
taxable income are as follows:
Deferred Tax
Year Incurred Tax Losses at 21%
2023 P2,942,843
= =617,997
P
2022 2,893,490 607,633
2021 2,583,181 542,468
2020 4,437,881 931,955
2019 3,877,686 814,314
2018 1,093,819 229,702
2017 940,933 197,596
2016 852,671 179,061
2015 104,510 21,947
19,727,014 4,142,673
Utilization during the year (19,352) (4,064)
Translation adjustments (117,390) (24,652)
=19,590,272
P =4,113,957
P
NOLCO of USA-based entities has no prescription effective taxable year 2018. The 2015, 2016 and
2017 NOLCO will expire in 2035, 2036 and 2037, respectively.
As at December 31, 2023, NOLCO of the Hungary-based entity that can be claimed as deductions
from taxable income are as follows:
Deferred Tax
Year Incurred Tax Losses at 21%
2019 =556,062
P =116,773
P
2020 2,031,119 426,535
2021 388,100 81,501
2022 703,595 147,755
3,678,876 772,564
Write-off (3,670,295) (770,762)
Translation adjustments (8,581) (1,802)
=–
P =–
P
NOLCO of Hungary-based entity from its US Operations were derecognized due to change in
business direction.
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As at December 31, 2023, NOLCO of the Europe-based entities that can be claimed as deductions
from taxable income are as follows:
Deferred Tax
Year Incurred Tax Losses at 19%
2020 =176,358
P =33,508
P
2018 14,589 2,772
190,947 36,280
Translation adjustments 6,216 1,181
=197,163
P =37,461
P
The following are the movements in deferred tax assets on NOLCO of the Jollibee Group:
2023 2022
Balance at beginning of year P
=4,906,426 =3,995,947
P
Write-off and expirations (797,556) (40,636)
Additions 717,912 1,256,110
Utilization during the year (5,418) (592,389)
Translation adjustments (40,454) 287,394
P
=4,780,910 =4,906,426
P
The following are the movements in deferred tax assets on Excess of MCIT over RCIT of the Jollibee
Group:
2023 2022
Balance at beginning of year P
=50,167 P462,557
=
Utilization during the year (50,167) (412,390)
P
=– =50,167
P
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The reconciliation of provision for income tax computed at the statutory income tax rates to provision
for income tax as shown in the consolidated statements of comprehensive income are as follows:
Provision for current income tax of foreign entities operating in the US, PRC, Vietnam and Singapore
amounted to P =30.6 million, =
P29.8 million, =
P163.5 million and =P21.5 million, respectively, for the
year ended December 31, 2023 and = P10.1 million, P=29.2 million, =P188.4 million and =
P13.1 million,
respectively, for the year ended December 31, 2022.
The funds are administered by trustee banks. Subject to the specific instructions provided in writing,
the Parent Company and certain Philippine-based subsidiaries direct the trustee banks to hold, invest
and reinvest the funds and keep the same invested, in its sole discretion, without distinction between
principal and income in, but not limited to, certain cash and other short-term deposits, investments in
government and corporate debt securities and quoted equity securities.
Under the existing regulatory framework, Republic Act No. 7641 requires a provision for retirement
pay to qualified private sector employees in the absence of any retirement plan in the entity, provided
however that the employees’ retirement benefits under any collective bargaining and other
agreements shall not be less than those provided under the law. The law does not require minimum
funding of the plan.
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The following tables summarize the components of pension expense, included under “Cost of sales”
and “General and administrative expenses” accounts in the consolidated statements of comprehensive
income and pension liability in the consolidated statements of financial position, which are based on
actuarial valuations.
Present Value
of Defined
Benefit Fair Value Pension
Obligation of Plan Assets Liability
At January 1, 2023 P
=3,957,303 P
=2,066,001 P
=1,891,302
Pension expense (see Notes 21
and 22):
Current service cost 303,516 – 303,516
Net interest 282,539 148,211 134,328
Settlement loss 8,089 – 8,089
594,144 148,211 445,933
Benefits paid (323,157) (332,469) 9,312
Settlement paid (44,795) (35,484) (9,311)
Remeasurements in other
comprehensive income:
Return on plan assets
(excluding amount
included in net interest) – 30,933 (30,933)
Actuarial changes arising
from changes in financial
assumptions 224,270 – 224,270
Actuarial changes due to
experience adjustment 159,290 – 159,290
Actuarial changes due to
demographic adjustment 43,110 – 43,110
426,670 30,933 395,737
Contributions – 401,743 (401,743)
At December 31, 2023 P
=4,610,165 P
=2,278,935 P
=2,331,230
Present Value
of Defined
Benefit Fair Value Pension
Obligation of Plan Assets Liability
At January 1, 2022 =4,421,591
P =2,005,126
P =2,416,465
P
Pension expense (see Notes 21
and 22):
Current service cost 345,434 – 345,434
Net interest 219,146 99,560 119,586
Settlement loss 2,562 – 2,562
567,142 99,560 467,582
Benefits paid (237,288) (237,288) –
Settlement paid (20,230) (19,277) (953)
(Forward)
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Present Value
of Defined
Benefit Fair Value Pension
Obligation of Plan Assets Liability
Remeasurements in other
comprehensive income:
Return on plan assets
(excluding amount
included in net interest) =–
P (P
=165,613) =165,613
P
Actuarial changes arising
from changes in financial
assumptions (693,781) – (693,781)
Actuarial changes due to
experience adjustment 66,058 – 66,058
Actuarial changes due to
demographic adjustment (134,503) – (134,503)
(762,226) (165,613) (596,613)
Contributions – 383,493 (383,493)
Transferred out-net (11,686) – (11,686)
At December 31, 2022 =3,957,303
P =2,066,001
P =1,891,302
P
The maximum economic benefit available is a combination of expected refunds from the plan and
reductions in future contributions.
The following table presents the carrying amounts, which approximate the estimated fair values, of
the assets of the plan:
2023 2022
Cash and cash equivalents P
=124,768 =227,737
P
Investments in government and corporate debt
securities 2,364,023 1,572,503
Investments in quoted equity securities:
Holding firms 213,518 235,147
Banks 149,961 135,912
Property 135,749 135,555
Food and beverage 54,609 67,752
Transportation 52,226 41,960
Electricity, energy, power and water 40,884 49,203
Telecommunications 33,677 46,310
Others 18,177 23,274
Interest and dividends receivable 32,681 22,133
Fund liabilities (see Notes 7 and 27) (941,590) (491,485)
P
=2,278,683 =2,066,001
P
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Investments in debt securities consist of long-term corporate bonds in the property sector, which
bear interest ranging from 4.34%-6.54% maturing from May 2024 to October 2032.
Investments in government securities consist of retail treasury bonds that bear interest ranging
from 2.38%-6.25% and have maturities from March 2024 to October 2037 and fixed-rate treasury
notes that bear interest ranging from 3.38%-9.25% and have maturities from April 2024 to
November 2042.
Investments in equity securities consist of investments in listed equity securities, including equity
securities of the Parent Company, for certain retirement plans of the Jollibee Group (see Note 27).
Other financial assets held by the retirement plan are primarily accrued interest income on cash
and cash equivalents, debt instruments and other securities.
Pension expense as well as the present value of the pension liability are determined using actuarial
valuations. The actuarial valuation involves making various assumptions. The principal assumptions
used in determining pension expense and liability for the defined benefit plans are shown below:
The sensitivity analysis below has been determined based on reasonably possible changes of each
significant assumption on the present value of the defined benefit obligation as at the end of the
reporting year, assuming all other assumptions were held constant:
Shown below is the maturity analysis of the undiscounted benefit payments as at December 31:
2023 2022
Less than 1 year P
=1,141,121 P943,135
=
More than 1 year to 5 years 1,500,190 1,451,423
More than 5 years to 10 years 2,450,048 2,351,784
More than 10 years to 15 years 3,244,825 3,107,963
More than 15 years to 20 years 3,710,396 3,731,237
More than 20 years 9,140,354 9,127,038
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The Parent Company and certain Philippine-based subsidiaries do not have a formal asset-liability
matching strategy. The overall investment policy and strategy of the retirement plans is based on the
client suitability assessment, as provided by trustee banks, in compliance with the BSP requirements.
Nevertheless, the Parent Company and certain Philippine-based subsidiaries ensure that there will be
sufficient assets to pay the retirement benefits as they fall due while attempting to mitigate the various
risks of the plans.
The plan assets are primarily exposed to financial risks such as liquidity risk and price risk. Liquidity
risk pertains to the plans’ ability to meet obligation to the employees upon retirement. To effectively
manage liquidity risk, the trustee banks maintain assets in cash and short-term deposits. Price risk
pertains mainly to fluctuation in market prices of the retirement funds’ marketable securities. In order
to effectively manage price risk, the trustee banks continuously assess these risks by closely
monitoring the market value of the securities and implementing prudent investment strategies.
The average duration of the defined benefit obligation is 10 years as at December 31, 2023 and 2022.
On December 23, 2022, the Philippine SEC approved the registration of up to 136,000,000 common
shares with a par value of P
=1.00 per share to be issued at =
P167.20 to =
P216.80 per share to eligible
participants of the Company pursuant to the Plan.
The Plan is divided into two programs, namely, the Management Stock Option Program (MSOP) and
the Executive Long-term Incentive Program (ELTIP). The MSOP provides a yearly stock option
grant program based on company and individual performance while the ELTIP provides stock
ownership as an incentive to reinforce entrepreneurial and long-term ownership behavior of executive
participants.
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MSOP. The MSOP is a yearly stock option grant program open to members of the senior
management committee of the Jollibee Group and members of the management committee, key
talents and designated consultants of some of the business units.
Each MSOP cycle refers to the period commencing on the MSOP grant date and ending on the last
day of the MSOP exercise period. Vesting is conditional on the employment of the employee-
participants in the Jollibee Group within the vesting period. The options will vest at the rate of one-
third of the total options granted on each anniversary of the MSOP grant date until the third
anniversary.
The exercise price of the stock options is determined by the Jollibee Group with reference to the
prevailing market prices over the three months immediately preceding the date of grant for the 1st to
the 7th MSOP cycle. Starting with the 8th MSOP cycle, the exercise price of the option is determined
by the Jollibee Group with reference to the market closing price at date of grant.
The options will vest at the rate of one-third of the total options granted from the start of the grant
date on each anniversary date which will start after a year from the grant date. For instance, under the
1st MSOP cycle, the Compensation Committee of the Jollibee Group granted 2,385,000 options to
eligible participants on July 1, 2004. One-third of the options granted, or 795,000 options, vested and
may be exercised starting July 1, 2005. The exercise period for the 1st MSOP cycle was until
June 30, 2012. From July 1, 2005 to October 25, 2023, the Compensation Committee granted series
of MSOP grants under the 2nd to 20th MSOP cycle to eligible participants. Under the most recent
grant on October 25, 2023, the 20th MSOP cycle, the Compensation Committee granted 5,548,602
options. These options vest similar to the 1st MSOP cycle.
The options under MSOP expire eight (8) years after grant date. The 1st, 2nd, 3rd, 4th, 5th, 6th, 7th,
8th, 9th, 10th, 11th and 12th MSOP cycles expired in 2012, 2013, 2014, 2015, 2016, 2017, 2018,
2019, 2020, 2021, 2022 and 2023, respectively.
The movements in the number of stock options outstanding under MSOP and related weighted
average exercise prices (WAEP) in 2023, 2022 and 2021 follow:
2023 2022 2021
Number of Number of Number of
Options WAEP Options WAEP Options WAEP
Total options granted at beginning
of year 65,466,338 P
= 129.24 61,141,454 =122.96
P 56,922,204 =118.03
P
Options granted during the year 5,548,602 214.00 4,324,884 218.00 4,219,250 189.60
Total options granted at end of year 71,014,940 P
= 135.87 65,466,338 =129.24
P 61,141,454 =122.96
P
Outstanding at beginning of year 17,246,159 P
= 205.97 20,984,985 =194.51
P 19,415,930 =191.22
P
Options granted during the year 5,548,602 214.00 4,324,884 218.00 4,219,250 189.60
Options exercised during the year (827,462) 189.72 (5,886,568) 180.01 (2,031,961) 154.66
Options forfeited during the year (943,040) 182.77 (2,177,142) 189.61 (618,234) 188.72
Outstanding at end of year 21,024,259 P
= 209.77 17,246,159 =205.97
P 20,984,985 =194.51
P
Exercisable at end of year 11,185,984 P
= 208.08 8,706,088 =216.22
P 13,220,262 =206.69
P
The weighted average share price of the Parent Company’s common shares is P =234.57, =
P228.53, and
=
P200.38 in 2023, 2022 and 2021, respectively. The weighted average remaining contractual life for
the stock options outstanding is 5.16 years, 5.14 years and 4.73 years as at December 31, 2023, 2022
and 2021, respectively.
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The weighted average fair value of stock options granted in 2023, 2022 and 2021 is = P77.52, =
P64.50
and P
=48.71, respectively. The fair value of share options as at the date of grant is estimated using the
Black-Scholes Option Pricing Model, taking into account, the terms and conditions upon which the
options were granted. The option style used for this plan is the American style because the option
plan allows exercise before the expiry date.
The inputs in the valuation of the options granted on the dates of grant for each MSOP cycle are
shown below:
Risk-free Expected Stock Price
MSOP Dividend Expected Interest Life of on Grant Exercise
Cycle Year of Grant Yield Volatility Rate the Option Date Price
12th 2015 2.00% 18.94% 2.98% 3-4 years P
=180.00 P
=180.00
13th 2016 2.00% 17.76% 2.63% 3-4 years 236.00 236.00
14th 2017 2.00% 16.70% 3.92% 3-4 years 206.20 206.20
15th 2018 2.00% 28.98% 4.95% 3-4 years 245.00 245.00
16th 2019 2.00% 27.65% 4.18% 3-4 years 219.00 219.00
17th 2020 2.00% 35.17% 2.40% 3-4 years 138.00 138.00
18th 2021 1.70% 36.19% 2.29% 3-4 years 189.60 189.60
19th 2022 1.70% 37.18% 4.92% 3-4 years 218.00 218.00
20th 2023 1.56% 34.42% 6.63% 5 years 214.00 214.00
The expected life of the stock options is based on historical data and current expectations and is not
necessarily indicative of exercise patterns that may occur. The expected volatility reflects the
assumption that the historical volatility over a period similar to the life of the options is indicative of
future trends, which may also not necessarily be the actual outcome.
ELTIP. The ELTIP entitlement is given to members of the senior management committee and
designated consultants of the Jollibee Group.
Each ELTIP cycle refers to the period commencing on the ELTIP entitlement date and ending on the
last day of the ELTIP exercise year. Actual grant and vesting are conditional upon achievement of
the Jollibee Group’s medium to long-term goals and individual targets in a given period, and the
employment of the employee-participants in the Jollibee Group within the vesting period. If the goals
are achieved, the options will be granted. For the 3rd ELTIP cycle, a percentage of the options to be
granted are based on the percentage of growth in annual earnings per share such that 100%, 50% or
25% of the options granted when percentage of growth in annual earnings per share are 12% and
above, 10% to less than 12% or 8% to less than 10%, respectively. For the 4th ELTIP cycle, the
percentage of the options to be granted and the targeted percentage of growth in annual earnings per
share have been further revised such that 150%, 100% or 50% of the options granted when
percentage of growth in annual earnings per share are 15% and above, 12% to less than 15% or 10%
to less than 12%, respectively.
The exercise price of the stock options under ELTIP is determined by the Jollibee Group with
reference to the prevailing market prices over the three months immediately preceding the date of
entitlement for the first and second ELTIP cycles. Starting with the 3rd ELTIP cycle, the exercise
price of the option is determined by the Jollibee Group with reference to the closing market price as at
the date of entitlement.
The options will vest at the rate of one-third of the total options granted on each anniversary date
which will start after the goals are achieved. For instance, on July 1, 2004, the Compensation
Committee gave an entitlement of 22,750,000 options under the 1st ELTIP cycle to eligible
participants. One-third of the options granted, or 7,583,333 options, vested and were exercised
starting July 1, 2007 until June 30, 2012. On July 1, 2008, October 19, 2012, August 25, 2015,
January 3, 2018 and May 19, 2021, entitlement to 20,399,999, 24,350,000, 11,470,000, 9,290,000 and
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15,629,998 options were given to eligible participants under the 2nd, 3rd, 4th, 5th and 6th ELTIP
cycles, respectively. The 1st, 2nd, 3rd and 4th ELTIP cycles expired on June 30, 2012, April 30,
2017, April 30, 2020 and April 30, 2023, respectively. The 5th ELTIP cycle was not granted to
ELTIP participants as the Jollibee Group did not achieve the minimum hurdle rate of 10% of annual
growth of the EPS due to the impact of the COVID-19 pandemic to Jollibee Group’s business
performance in 2020.
The movements in the number of stock options outstanding for the 4th ELTIP cycle and related
WAEP in 2023, 2022 and 2021 follow:
The weighted average remaining contractual life for the stock options outstanding is nil, 0.33 year,
and 1.33 years as at December 31, 2023, 2022 and 2021, respectively.
The inputs to the model used for the options granted on the date of grant for the 4th ELTIP cycle are
shown below:
Expected Stock Price
Year Dividend Expected Risk-free Life of on Grant Exercise
ELTIP Cycle of Grant Yield Volatility Interest Rate the Option Date Price
4th 2015 2.00% 18.94% 2.98% 3-4 years P
=180.00 P
=180.00
The expected life of the stock options is based on historical data and current expectations and is not
necessarily indicative of exercise patterns that may occur. The expected volatility reflects the
assumption that the historical volatility over a period similar to the life of the options is indicative of
future trends, which may also not necessarily be the actual outcome.
The cost of the stock options expense charged to operations for both MSOP and ELTIP in the
“General and administrative expenses” account amounted to = P353.9 million, =
P185.0 million and
P
=155.5 million in 2023, 2022 and 2021, respectively (see Notes 19, 22 and 27). Correspondingly, a
credit was made to additional paid-in-capital (see Note 19).
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The Jollibee Group has transactions with related parties. Enterprises and individuals that directly, or
indirectly through one or more intermediaries, control or are controlled by, or under common control
with the Jollibee Group, including holding companies, subsidiaries and fellow subsidiaries are related
entities of the Jollibee Group. Individuals owning, directly or indirectly, an interest in the voting
power of the Jollibee Group that give them significant influence over the enterprise, key management
personnel, including directors and officers of the Jollibee Group, and close members of the family of
these individuals and companies associated with these individuals also constitute related parties.
2023 2022
Number of shares 83,760 110,610
Market value P
=21,057 =25,440
P
Cost 18,690 23,383
Unrealized gain P
=2,367 =2,057
P
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Potential common shares for stock options under the 13th, 15th and 19th MSOP cycles in 2023 and 13th
and 15th MSOP cycles in 2022 were not included in the calculation of the diluted EPS because they
are anti-dilutive.
29. Leases
The Jollibee Group also has certain leases of QSR outlets with lease term of 12 months or less. The
Jollibee Group applies the ‘short-term lease’ recognition exemptions for these leases.
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Set out below are the carrying amounts of right-of-use assets recognized and the movements during
the period:
Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and
borrowings) and the movements during the period:
2023 2022
As at beginning of year P
=48,144,447 =43,183,677
P
Additions 12,717,272 12,933,379
Payments (11,158,642) (10,094,676)
Accretion of interest (see Note 23) 2,799,307 2,559,104
Pre-terminations (see Note 23) (838,394) (961,871)
Rent concessions – (152,196)
Cumulative translation adjustments 67,539 677,030
As at end of year P
=51,731,529 =48,144,447
P
Current P
=8,442,985 P8,188,929
=
Noncurrent 43,288,544 39,955,518
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In 2023 and 2022, the Jollibee Group accounted the rent concessions received from lessors amounting
to nil and P
=152.2 million, respectively, as negative variable lease payments in the consolidated
statements of comprehensive income.
Set out below are the carrying amounts of finance lease receivables and the movements during the
year:
2023 2022
At beginning of year P
=41,619 =56,674
P
Pre-terminations (see Note 23) (26,128) –
Payments (15,710) (17,506)
Accretion of interest (see Note 23) 1,030 2,451
At end of year P
=811 =41,619
P
Shown below is the maturity analysis of the undiscounted finance lease receivables:
2023 2022
1 year P
=298 =19,615
P
more than 1 year to 5 years 1,150 24,145
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30. Contingencies
The Jollibee Group is involved in litigations, claims and disputes, and regulatory assessments which
are normal to its business. Management believes that the ultimate liability, if any, with respect to
these litigations, claims and disputes will not materially affect the financial position and financial
performance of the Jollibee Group. Thus, other than the provisions in Note 17, there were no other
provisions made for contingencies.
The Jollibee Group does not provide further information on these provisions and contingencies in
order not to impair the outcome of the litigations, claims and disputes.
The Jollibee Group is exposed to a variety of financial risks from its operating, investing and
financing activities. The Jollibee Group’s risk management policies focus on actively securing the
Jollibee Group’s short-term to medium-term cash flows by minimizing the exposure to financial
markets.
The Jollibee Group’s principal financial instruments comprise of cash and cash equivalents, short-
term investments, current portion of financial assets at FVTPL, receivables, short-term and long-term
debts and senior debt securities. The main purpose of these financial instruments is to obtain
financing for the Jollibee Group’s operations. The Jollibee Group has other financial assets and
liabilities such as security and other deposits, finance lease receivables, lease liabilities and trade
payables and other current liabilities (excluding accrual for local and other taxes, liabilities to
government agencies and unearned revenue from gift certificates) which arise directly from its
operations and noncurrent portion of financial assets at FVTPL.
The main risks arising from these financial instruments are interest rate risk, foreign currency risk,
credit risk and liquidity risk. The risk management policies reviewed regularly by the Parent
Company’s BOD and management for managing each of these risks are summarized as follows:
The Jollibee Group’s exposure to interest rate risk relates primarily to short-term and long-term debts
with floating interest rates. Floating rate financial instruments are subject to cash flow interest rate
risk. The Jollibee Group’s interest rate exposure management policy centers on reducing the Jollibee
Group’s overall interest expense and exposure to changes in the interest rates.
With the Jollibee Group’s Corporate Planning Team, it enters into loan contracts with variable
interest rates and option to fix interest rates which can be availed to manage its loan risks.
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There is minimal exposure on the other sources of the Jollibee Group’s interest rate risk. These other
sources are from the Jollibee Group’s cash in banks, short-term deposits and short-term investments.
The following tables demonstrate the sensitivity to a reasonably possible change in interest rates,
with all other variables held constant, of the Jollibee Group’s income before income tax as at
December 31, 2023 and 2022. The impact on the Jollibee Group’s income before income tax is due
to changes in the fair value of floating interest rates.
The assumed movement in basis point for interest rate sensitivity analysis is based on the currently
observable market environment.
The Jollibee Group also has transactional foreign currency exposures. Such exposures arise from the
Jollibee Group’s Philippine operations’ cash and cash equivalents, receivables and trade payables in
foreign currencies.
The table below shows the Jollibee Group’s Philippine operations’ foreign currency-denominated
monetary assets and liabilities and their peso equivalents as at December 31:
2023 2022
PHP PHP
USD Equivalent USD Equivalent
Foreign currency denominated assets:
Cash and cash equivalents 20,881 1,156,181 15,328 854,689
Receivables 18,590 1,029,328 31,181 1,738,653
39,471 2,185,509 46,509 2,593,342
Foreign currency denominated
liability -
Accounts payable - trade (6,019) (333,272) (10,192) (568,306)
Foreign currency denominated assets
- net 33,452 1,852,237 36,317 2,025,036
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The table below demonstrates the sensitivity to a reasonably possible change in USD to Philippine
peso exchange rate, with all other variables held constant, of the Jollibee Group’s income before
income tax (due to changes in the fair value of monetary assets and liabilities) as at December 31:
2023 2022
Effect on Effect on
Income Income Effect on
before Effect on before Equity
Appreciation (Depreciation) Income Equity before Income before
of =
P against Foreign Currency Tax Income Tax Tax Income Tax
USD 1.50 (P
=50,178) (P
=50,178) (P
=54,476) (P
=54,476)
(1.50) 50,178 50,178 54,476 54,476
1.00 (33,452) (33,452) (36,317) (36,317)
(1.00) 33,452 33,452 36,317 36,317
Credit Risk
Credit risk is the risk that a customer or counterparty fails to fulfill its contractual obligations to the
Jollibee Group. This includes risk of non-payment by borrowers, failed settlement of transactions and
default on outstanding contracts.
The Jollibee Group has a strict credit policy. Its credit transactions are with franchisees and
customers that have gone through rigorous screening before granting them the franchise. The credit
terms are very short, while deposits and advance payments are also required before rendering the
services or delivering the goods, thus, mitigating the possibility of non-collection. In cases of non-
collection, defaults of the debtors are not tolerated; the exposure is contained the moment a default
occurs and transactions that will further increase the exposure of the Jollibee Group are discontinued.
The Jollibee Group has no significant concentration of credit risk with counterparty. The Jollibee
Group’s franchisee profile is such that no single franchisee accounts for more than 5% of the total
system-wide sales of the Jollibee Group.
The aging analysis of financial assets as at December 31as follows:
2023
Neither Past
Due nor Past Due but not Impaired (Age in Days)
Total Impaired 1-30 31-60 61-120 Over 120 Impaired
Financial Assets at Amortized Cost (In Millions)
Cash and cash equivalents* = 32,831.1
P =
P 32,831.1 =–
P =–
P =–
P =–
P P–
=
Short-term investments 624.8 624.8 – – – – –
Receivables:
Trade 6,549.3 3,761.8 339.6 165.9 281.4 830.5 1,170.1
Receivable from retirement fund 770.3 15.7 17.8 30.7 45.3 660.8 –
Advances to employees 706.3 706.3 – – – – –
Employee car plan receivables** 184.1 184.1 – – – – –
Other receivables*** 15.8 15.8 – – – – –
(Forward)
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2023
Neither Past
Due nor Past Due but not Impaired (Age in Days)
Total Impaired 1-30 31-60 61-120 Over 120 Impaired
Finance lease receivables = 0.8
P = 0.8
P =–
P =–
P =–
P =–
P =–
P
Other noncurrent assets -
Security and other deposits** 3,797.6 3,797.6 – – – – –
45,480.1 41,938.0 357.4 196.6 326.7 1,491.3 1,170.1
Financial Assets at FVTPL** 8,170.0 8,170.0 – – – – –
= 53,650.1
P P
= 50,108.0 = 357.4
P ₱196.6 = 326.7
P P1,491.3
= = 1,170.1
P
*Excluding cash on hand amounting to = P 401.4 million
**Including noncurrent portion
***Including interest receivable and excluding receivables from government agencies amounting to =
P 97.8 million
2022
Neither Past
Due nor Past Due but not Impaired (Age in Days)
Total Impaired 1-30 31-60 61-120 Over 120 Impaired
Financial Assets at Amortized Cost (In Millions)
Cash and cash equivalents* P
=28,514.0 P
=28,514.0 P
=– P
=– P
=– P
=– P
=–
Short-term investments 619.2 619.2 – – – – –
Receivables:
Trade 6,519.3 2,873.8 775.2 267.6 314.6 1,368.9 919.2
Advances to employees 1,816.0 1,816.0 – – – – –
Receivable from retirement fund 486.6 28.3 21.7 11.4 14.8 410.4 –
Employee car plan receivables** 130.7 130.7 – – – – –
Other receivables*** 14.6 14.6 – – – – –
Finance lease receivables 41.6 41.6 – – – – –
Other noncurrent assets -
Security and other deposits** 3,626.7 3,626.7 – – – – –
41,768.7 37,664.9 796.9 279.0 329.4 1,779.3 919.2
Financial Assets at FVTPL** 8,278.5 8,278.5 – – – – –
=50,047.2
P P
=45,943.4 =796.9
P =279.0
P =329.4
P =1,779.3
P =919.2
P
*Excluding cash on hand amounting to = P 355.3 million
**Including noncurrent portion
***Including interest receivable and excluding receivables from government agencies amounting to =
P 103.6 million
Credit Risk Exposure. The tables below show the maximum exposure to credit risk of the Jollibee
Group as at December 31, 2023 and 2022 without considering the effects of collaterals and other
credit risk mitigation techniques:
2023
Fair Value and
Financial Effect of
Gross Maximum Collateral or Credit
Exposure Enhancement Net Exposure
(a) (b) (c) = (a) - (b)
(In Millions)
Financial Assets at Amortized Cost
Cash and cash equivalents* = 32,831.1
P = 304.1
P = 32,527.0**
P
Short-term investments 624.8 – 624.8
Receivables:
Trade 6,549.3 – 6,549.3
Receivable from retirement fund 770.3 – 770.3
Advances to employees 706.3 – 706.3
Employee car plan receivables**** 184.1 – 184.1
Other receivables*** 15.8 – 15.8
Finance lease receivables 0.8 – 0.8
Other noncurrent assets -
Security and other deposits**** 3,797.6 – 3,797.6
Financial assets at FVTPL**** 8,170.0 – 8,170.0
= 53,650.1
P = 304.1
P = 53,346.0
P
* Excluding cash on hand amounting to = P 401.4 million.
** Gross financial assets after taking into account insurance bank deposits for cash and cash equivalents.
*** Including interest receivable and excluding receivables from government agencies amounting to = P 97.8 million
**** Including noncurrent portion
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2022
Fair Value and
Financial Effect of
Gross Maximum Collateral or Credit
Exposure Enhancement Net Exposure
(a) (b) (c) – (a) - (b)
(In Millions)
Financial Assets at Amortized Cost
Cash and cash equivalents* P
=28,514.0 P
=264.1 P
=28,249.9**
Short-term investments 619.2 – 619.2
Receivables:
Trade 6,519.3 – 6,519.3
Advances to employees 1,816.0 – 1,816.0
Receivable from retirement fund 486.6 – 486.6
Employee car plan receivables**** 130.7 – 130.7
Other receivables*** 14.6 – 14.6
Finance lease receivables 41.6 – 41.6
Other noncurrent assets -
Security and other deposits**** 3,626.7 – 3,626.7
Financial assets at FVTPL**** 8,278.5 – 8,278.5
P
=50,047.2 P
=264.1 P
=49,783.1
* Excluding cash on hand amounting to = P 355.3 million.
** Gross financial assets after taking into account insurance bank deposits for cash and cash equivalents.
*** Including interest receivable and excluding receivables from government agencies amounting to = P 103.6 million
**** Including noncurrent portion
With respect to credit risk arising from financial assets of the Jollibee Group, the Jollibee Group’s
exposure to credit risk arises from default of the counterparty, with a gross maximum exposure equal
to the carrying amount of these instruments.
Credit Quality. The financial assets of the Jollibee Group are grouped according to stage of which
description is explained as follows:
Stage 1 - Those that are considered current and up to 30 days past due, and based on change in rating,
delinquencies and payment history, do not demonstrate significant increase in credit risk.
Stage 2 - Those that, based on change in rating, delinquencies and payment history, demonstrate
significant increase in credit risk, and/or are considered more than 30 days past due but
does not demonstrate objective evidence of impairment as at reporting date.
Stage 3 - Those that are considered in default or demonstrate objective evidence of impairment as at
reporting date.
The tables below show determination of ECL stage of the Jollibee Group’s financial assets:
2023
Stage 1 Stage 2 Stage 3
Total 12-month ECL Lifetime ECL Lifetime ECL
Financial Assets at Amortized Cost (in Millions)
Receivables:
Trade =6,549.3
P =4,101.4
P P
=1,277.8 =1,170.1
P
Receivable from retirement fund 770.3 33.5 736.8 –
Advances to employees 706.3 706.3 – –
Employee car plan receivables* 184.1 184.1 – –
Other receivables** 15.8 15.8 – –
Financial Assets at FVTPL* 8,170.0 8,170.0 – –
P
=16,395.8 =13,211.1
P =2,014.6
P P
=1,170.1
*Including noncurrent portion
**Including interest receivable and excluding receivables from government agencies amounting to =
P 97.8 million
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2022
Stage 1 Stage 2 Stage 3
Total 12-month ECL Lifetime ECL Lifetime ECL
Financial Assets at Amortized Cost (in Millions)
Receivables:
Trade P6,519.3
= P3,649.0
= =1,951.1
P =919.2
P
Advances to employees 1,816.0 1,816.0 – –
Receivable from retirement fund 486.6 50.0 436.6 –
Employee car plan receivables* 130.7 130.7 – –
Other receivables** 14.6 14.6 – –
Financial Assets at FVTPL* 8,278.5 8,278.5 – –
=17,245.7
P =13,938.8
P =2,387.7
P =919.2
P
*Including noncurrent portion
**Including interest receivable and excluding receivables from government agencies amounting to =
P 103.6 million
Liquidity Risk
The Jollibee Group’s exposure to liquidity risk refers to the risk that its financial liabilities are not
serviced in a timely manner and that its working capital requirements and planned capital
expenditures are not met. To manage this exposure and to ensure sufficient liquidity levels, the
Jollibee Group closely monitors its cash flows to be able to finance its capital expenditures and to pay
its obligations as and when they fall due.
On a weekly basis, the Jollibee Group’s Cash and Banking Team monitors its collections,
expenditures and any excess/deficiency in the working capital requirements, by preparing cash
position reports that present actual and projected cash flows for the subsequent week. Cash outflows
resulting from major expenditures are planned so that money market placements are available in time
with the planned major expenditure. In addition, the Jollibee Group has short-term cash deposits and
portfolio investments and has available credit lines with accredited banking institutions, in case there
is a sudden deficiency. The Jollibee Group maintains a level of cash and cash equivalents deemed
sufficient to finance its operations. No changes were made in the objectives, policies or processes of
the Jollibee Group for the year ended December 31, 2023 and 2022.
The Jollibee Group’s financial assets, which have maturity of less than 12 months and are used to
meet its short-term liquidity needs, are cash and cash equivalents, short-term investments, financial
assets at FVTPL and trade receivables and contract assets amounting to P =33,232.5 million,
=
P624.8 million, =P7,853.8 million and =P6,915.1 million, respectively, as at December 31, 2023 and
=
P28,869.3 million, =P619.2 million, =P8,251.0 million and =
P7,160.1 million, respectively, as at
December 31, 2022.
The tables below summarize the maturity profile of the Jollibee Group’s other financial liabilities
based on the contractual undiscounted cash flows as at December 31, 2023 and 2022:
2023
Due and Less than Over
Demandable 1 Year 1 to 5 Years 5 Years Total
(in Millions)
Financial Liabilities
Trade payables and other current liabilities* P
=13,025.8 P
=28,669.5 P
= P
= P
=41,695.3
Short term debt 6,062.2 6,062.2
Long-term debt (including current portion) 3,226.5 9,999.2 13,225.7
Senior debt securities 1,474.2 20,452.3 17,794.5 39,721.0
Lease liabilities 10,334.0 33,947.6 31,284.9 75,566.5
Total Financial Liabilities P
=13,025.8 P
=49,766.4 P
=64,399.1 P
=49,079.4 P
=176,270.7
*Excluding statutory obligations such as local and other taxes payable, PHIC, SSS, HDMF and NHMFC payables and unearned revenue
from gift certificates amounting to =
P 5,140.2 million as at December 31, 2023
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2022
Due and Less than Over
Demandable 1 Year 1 to 5 Years 5 Years Total
(in Millions)
Financial Liabilities
Trade payables and other current liabilities* P
=12,531.4 P
=27,613.6 P
= P
= P
=40,145.0
Short term debt 4,376.4 4,376.4
Long-term debt (including current portion) 5,091.9 12,043.2 17,135.1
Senior debt securities 1,484.6 20,941.4 18,714.5 41,140.5
Lease liabilities 9,274.7 29,989.3 28,952.2 68,216.2
Total Financial Liabilities P
=12,531.4 P
=47,841.2 P
=62,973.9 P
=47,666.7 P
=171,013.2
*Excluding statutory obligations such as local and other taxes payable, PHIC, SSS, HDMF and NHMFC payables and unearned revenue
from gift certificates amounting to =
P 3,098.7 million as at December 31, 2022
Price Risk
Price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate
because of changes in market prices (other than those arising from interest rate or foreign exchange
rate risk), whether those changes are caused by factors specific to the individual financial instrument
or contract, or by factors affecting all similar contracts or financial instruments traded in the market.
The Jollibee Group’s price risk exposure relates to financial assets which values will fluctuate as a
result of changes in market prices.
The Jollibee Group price risk policy requires it to manage such risks by setting and monitoring
objectives and constraints on investments.
The Jollibee Group has no significant concentration of price risk.
The Jollibee Group is not exposed to significant equity price risk on its investment in quoted equity
securities consisting of investment in golf and club shares and private equity fund.
At the reporting date, the Jollibee Group’s exposure to other price risk arises from the changes in fair
value of bond funds. The Jollibee Group has determined that an increase (decrease) ranging from 1%
to 5% on the market prices could have an impact of approximately = P235.6 million and = P252.2 million
on the profit or loss and equity before income tax, respectively, as at December 31, 2023 and 2022.
The analysis was performed for reasonably possible movements in the market index with all other
variables held constant. The correlation of variables will have a significant effect in determining the
ultimate impact on price risk, but to demonstrate the impact due to changes in variables, variables had
to be changed on an individual basis.
The primary objective of the Jollibee Group’s capital management is to ensure that it maintains a
strong credit rating and healthy capital ratios in order to support its business and maximize
shareholder value. The Jollibee Group has sufficient capitalization.
The Jollibee Group generates cash flows from operations sufficient to finance its organic growth. It
declares cash dividends representing at least one-third of its consolidated net income, a ratio that
would still leave some additional cash for future expansion. If needed, the Jollibee Group would
borrow money for acquisitions of new businesses.
*SGVFS187686*
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As at December 31, 2023 and 2022, the Jollibee Group’s debt ratio and net debt ratio are as follows:
Debt Ratio
2023 2022
Total debt (a) P
=157,917,561 =152,487,672
P
Total equity attributable to equity holders
of the Parent Company 67,922,881 62,220,760
Total debt and equity attributable to equity
holders of the Parent Company (b) P
=225,840,442 =214,708,432
P
Debt ratio (a/b) 70% 71%
2023 2022
Total debt P
=157,917,561 =152,487,672
P
Less cash and cash equivalents, short-term
investments and current portion of financial
assets at FVTPL 41,711,088 37,739,438
Net debt (a) 116,206,473 114,748,234
Total equity attributable to equity holders
of the Parent Company 67,922,881 62,220,760
Net debt and equity attributable
to equity holders of the Parent Company (b) P
=184,129,354 =176,968,994
P
Net debt ratio (a/b) 63% 65%
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at measurement date.
Financial Instruments Which Carrying Amounts Approximate Fair Value. Management has
determined that the carrying amounts of cash and cash equivalents, short-term investments,
receivables, trade payables and other current liabilities, based on their notional amounts, reasonably
approximate their fair values because of their short-term nature or due to the immaterial effect of
discounting when the present value of future cash flows from these instruments are calculated.
Financial Assets at FVTPL. The fair value of bond funds, private equity fund investment and quoted
shares of stock in golf and leisure clubs are based on quoted prices. The Jollibee Group does not have
the intention to dispose its quoted shares of stock in the near term.
Finance Lease Receivables, Security and Other Deposits, Employee Car Plan Receivables, Long-term
Debt and Lease Liabilities. Management has determined that the estimated fair value of finance lease
receivables, security and other deposits, noncurrent portion of employee car plan receivables, long-
term debt and lease liabilities are based on the discounted value of future cash flows using applicable
rates is presented in the next page:
*SGVFS187686*
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2023 2022
Finance lease receivables 3.95%-5.82% 3.90%-5.36%
Security and other deposits 1.74%-14.02% 1.28%-14.46%
Employee car plan receivables 2.30%-8.50% 0.73%-8.55%
Long-term debt 0.75%-5.87% 1.03%-4.12%
Lease liabilities 2.00%-9.00% 0.18%-14.46%
The following tables provide the fair value measurement hierarchy of the Jollibee Group’s recurring
financial assets and liabilities.
Quantitative disclosure fair value measurement hierarchy for assets as at December 31, 2023:
Quantitative fair value measurement hierarchy for assets as at December 31, 2022:
Fair Value Measurement Using
Quoted
Prices in Significant Significant
Active Observable Unobservable
Markets Inputs Inputs
Carrying Value Total (Level 1) (Level 2) (Level 3)
Assets measured at fair value -
Financial assets at FVTPL P
=8,278,493 P
=8,278,493 P
=– P
=8,278,493 P
=–
Assets for which fair values are disclosed:
Finance lease receivables 41,619 41,619 – – 41,619
Other noncurrent assets:
Security and other deposits 3,626,726 1,635,138 – – 1,635,138
Employee car plan receivables 130,688 95,160 – – 95,160
Quantitative fair value measurement hierarchy for liabilities as at December 31, 2023:
*SGVFS187686*
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Quantitative fair value measurement hierarchy for liabilities as at December 31, 2022:
Fair Value Measurement Using
Quoted Prices Significant Significant
in Active Observable Unobservable
Markets Inputs Inputs
Date of Valuation Total (Level 1) (Level 2) (Level 3)
Liabilities disclosed at fair value:
Tenants’ deposit December 31, 2022 P
=2,581 P
=– P
=– P
=2,581
Long-term debt December 31, 2022 14,293,556 – – 14,293,556
There were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into
and out of Level 3 fair value measurements during the period.
*SGVFS187686*
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33. Notes to the Statements of Cash Flows
For the years ended December 31, 2023 and 2022, movements in the Jollibee Group’s liabilities and equity arising from financing activities follow:
2023
Share in
Share in Net Cumulative
Granted Stock Earnings of Translation
Options to Amortization Non- Adjustments of Pre-
Dividends Employees and Interest of Debt Cumulative controlling Non-controlling termination of Acquisition
January 1, Declared Subsidiaries Expense Issue Cost Translation Interest Interest Additions Leases of a business December 31,
2023 Cash Flows (Note 19) (Note 22) (Note 23) (Note 18) Adjustments (Note 11) (Note 11) (Note 29) (Note 29) (Note 11) 2023
(in Millions)
Dividends and distributions payable
(see Note 16) P
=822.4 (P
=4,115.4) P
=3,904.9 P
=– P
=– P
=– (P
=17.3) P
=– P
=– P
=– P
=– P
=– P
=594.6
Short-term debt (Note 18) 4,376.4 1,494.9 – – – – (119.6) – – – – – 5,751.7
Long-term debt (Note 18) 16,263.2 (3,634.7) – – – 23.7 (35.2) – – – – – 12,617.0
Senior debt securities (Note 18) 33,288.3 – – – – 22.4 (232.9) – – – – – 33,077.8
Interest payable (Note 16) 523.0 (2,560.3) – – 2,579.7 – – – – – – – 542.4
Lease liabilities (Note 29) 48,144.4 (11,158.6) – – 2,799.3 – 67.5 – – 12,717.3 (838.4) – 51,731.5
Preferred stock (Note 19) 12,000.0 – – – – – – – – – – – 12,000.0
Common stock (Note 19) 1,131.2 1.1 – – – – – – – – – – 1,132.3
Additional paid-in capital (Note 19) 12,091.8 207.9 – 363.2 – – – – – – – – 12,662.9
Senior perpetual securities
(Note 19) 20,264.8 – – – – – – – – – – – 20,264.8
Non-controlling interest (Note 11) (1,570.5) 100.0 (892.2) – – – – 219.3 9.1 – – 203.3 (1,931.0)
Total liabilities and equity
on financing activities P
=147,335.0 (₱19,665.1) ₱3,012.7 P
=363.2 ₱5,379.0 P
=46.1 (₱337.5) ₱219.3 ₱9.1 P
=12,717.3 (P
=838.4) P
=203.3 P
=148,444.0
*SGVFS187686*
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2022
Granted Share in Share in
Stock Net Cumulative
Options to Losses of Translation
Reversal of Employees Acquisition Amortization Non- Adjustments of Pre-
Dividends Subscription and Interest of a of Debt Cumulative controlling Non-controlling Rent termination of
January 1, Declared Receivable Subsidiaries Expense Subsidiary Issue Cost Translation Interest Interest Additions Concessions Leases December 31,
2022 Cash Flows (Note 19) (Note 19) (Note 22) (Note 23) (Note 11) (Note 18) Adjustments (Note 11) (Note 11) (Note 29) (Note 29) (Note 29) 2022
(in Millions)
Dividends and distributions payable
(see Note 16) =
P636.0 (P
=3,639.5) =
P3,036.2 =
P– =
P– =
P764.7 =
P– =
P– =
P25.0 =
P– =
P– =
P– =
P– =
P– =
P822.4
Short-term debt (Note 18) 510.0 3,867.2 – – – – – – (0.8) – – – – – 4,376.4
Long-term debt (Note 18) 22,360.2 (6,402.2) – – – – – 28.8 276.4 – – – – – 16,263.2
Senior debt securities (Note 18) 30,426.1 – – – – – – 21.9 2,840.3 – – – – – 33,288.3
Interest payable (Note 16) 545.7 (2,231.2) – – – 2,208.5 – – – – – – – – 523.0
Lease liabilities (Note 29) 43,183.6 (10,094.7) – – – 2,559.1 – – 677.1 – – 12,933.4 (152.2) (961.9) 48,144.4
Preferred stock (Note 19) 12,000.0 – – – – – – – – – – – – – 12,000.0
Common stock (Note 19) 1,124.3 8.9 – (2.0) – – – – – – – – – – 1,131.2
Additional paid-in capital (Note 19) 10,331.3 1,589.0 – (15.2) 186.7 – – – – – – – – – 12,091.8
Senior perpetual securities
(Note 19) 20,264.8 – – – – – – – – – – – – – 20,264.8
Non-controlling interest (Note 11) (1,682.2) 130.2 (32.6) – – – 464.8 – – (220.0) (230.7) – – – (1,570.5)
Total liabilities and equity
on financing activities =
P139,699.8 (P
=16,772.3) =
P3,003.6 (₱17.2) =
P186.7 =
P5,532.3 =
P464.8 =
P50.7 =
P3,818.0 (P
=220.0) (P
=230.7) =
P12,933.4 (P
=152.2) (P
=961.9) =
P147,335.0
Noncash Activities
In 2023, the principal noncash transaction under investing activities pertains to transfer of buildings and building improvements to investment properties amounting to
P101.6 million (see Notes 12 and 13).
=
In 2022, the principal noncash transaction under investing activities pertains to land conveyed to CentralHub with a total fair value of =
P2,089.3 million in exchange for an
additional 18.15% ownership interest (see Notes 11 and 12) and land with a total fair value of =P2,401.6 million in exchange for condominium units (see Notes 9 and 12).
*SGVFS187686*
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Dividend Declaration, Release of Appropriated and Appropriation of Retained Earnings and Planned
Preferred Shares Offering
On March 8, 2024, the BOD of the Parent Company approved the following:
Appropriation of P=23,400.0 million from the Parent Company’s unappropriated retained earnings
for capital expenditures in 2024.
Plan to offer and issue in the Philippines an additional 5.0 million preferred shares with an
oversubscription option of up to 3.0 million preferred shares. The preferred shares will be sold at
a subscription price of =P1,000.00 per share, with an estimated issue size of P
=5.0 billion to up to
P
=8.0 billion, if the oversubscription option is fully exercised. These will be cumulative, non-
voting, non-participating, non-convertible, redeemable, peso-denominated perpetual preferred
shares.
Increased Commitment to Titan Fund
On January 1, 2024, the Jollibee Group, through its wholly owned subsidiary, JWPL, announced the
increase in the total maximum fund of Titan from SGD350.0 million (P =14,395.5 million) to
SGD450.0 million (P =18,940.5 million) to fund the store expansion plans and working capital
requirements of Tim Ho Wan and the completion of other projects. With the increase in fund size,
JWPL’s total commitment to the fund shall amount to SGD414.0 million (P =17,425.3 million). JWPL
also increased its participating interest from 90% to 92% through purchase of 2% participating
interest of another limited partner in the fund for a total consideration of SGD7.7 million
(P
=324.8 million). These amendments are necessary to support the growth expansion of Tim Ho Wan,
other brands and other future food and beverages concepts that will be part of Titan’s portfolio.
*SGVFS187686*
SyCip Gorres Velayo & Co. Tel: (632) 8891 0307
6760 Ayala Avenue Fax: (632) 8819 0872
1226 Makati City ey.com/ph
Philippines
We have audited in accordance with Philippine Standards on Auditing, the consolidated financial
statements of Jollibee Foods Corporation Doing business under the name and style of Jollibee
(the Parent Company) and its subsidiaries (the Jollibee Group) as at December 31, 2023 and 2022, and for
each of the three years in the period ended December 31, 2023 and have issued our report thereon dated
March 8, 2024. Our audits were made for the purpose of forming an opinion on the basic consolidated
financial statements taken as a whole. The schedules listed in the Index to the Supplementary Schedules
are the responsibility of the Jollibee Group’s management. These schedules are presented for purposes of
complying with Revised Securities Regulation Code Rule 68, and are not part of the basic consolidated
financial statements. These schedules have been subjected to the auditing procedures applied in the audit
of the basic consolidated financial statements and, in our opinion, the financial information required to be
set forth therein in relation to the basic consolidated financial statements taken as a whole, are prepared in
all material respects, in accordance with Philippine Financial Reporting Standards.
Mariecris N. Barbaso
Partner
CPA Certificate No. 97101
Tax Identification No. 202-065-716
BOA/PRC Reg. No. 0001, August 25, 2021, valid until April 15, 2024
BIR Accreditation No. 08-001998-108-2023, September 12, 2023, valid until September 11, 2026
PTR No. 10079905, January 5, 2024, Makati City
March 8, 2024
*SGVFS187686*
A member firm of Ernst & Young Global Limited
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS
AND SUPPLEMENTARY SCHEDULES
DECEMBER 31, 2023
Supplementary Schedules
* These schedules, which are required by Revised SRC Rule 68, have been omitted because they are not applicable
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
SCHEDULE A: FINANCIAL ASSETS -Temporary Investments, Time Deposits and Financial Assets at Fair Value through Profit or Loss (FVTPL)
FOR THE YEAR ENDED DECEMBER 31, 2023
Name of Issuing Entity and Amount shown in the Consolidated Statement Income Received
Association of each use of Financial Position and Accrued
(Amounts in thousands)
Financial Assets at Amortized Cost
Cash in banks and cash equivalents N/A =
P32,831,133 =
P687,278
Short-term investments N/A 624,800 68,227
Receivables:
Trade N/A 6,549,315 –
Advances to employees N/A 706,276 –
Retirement fund N/A 770,297 –
Employee car plan N/A 184,065 –
Others N/A 15,841 –
Finance lease receivables N/A 811 –
Security and other deposits N/A 3,797,717 –
45,480,255 755,505
Financial Assets at FVTPL:
Investments in bond funds JP Morgan Chase Bank, N.A. 5,183,914 –
Investments in bond funds Citibank 2,669,886 –
Investments in private equity LCGP3 Fresh Flavors Holdings, LP 283,800 –
Equity investments Tagaytay Highlands 22,200 –
Equity investments The Palms Country Club 2,000 –
Equity investments The Rockwell Club 350 –
Equity investments Valle Verde Country Club, Inc. 600 –
Equity investments Club Filipino 250 –
Equity investments Celebrity Sports Plaza 300 –
Equity investments Tagaytay Country Club 600 –
Equity investments Tagaytay Midlands 1,500 –
Equity investments Others 4,582 –
8,169,982 –
Total Financial Assets =53,650,237
P =
P755,505
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
SCHEDULE C: RECEIVABLE FROM RELATED PARTIES ELIMINATED DURING THE CONSOLIDATION OF FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2023
Balance
at Beginning Amount Balance at
Name of Debtor of Year Additions Collected Equitized* Current Noncurrent End of Year
(Amounts in thousands)
Jollibee Foods Corporation =14,283,012
P =18,877,156
P (P
=22,995,263) =–
P =10,164,905
P =–
P =10,164,905
P
Freemont Foods Corporation 1,200,722 12,096,517 (12,062,083) – 1,235,156 – 1,235,156
Zenith Foods Corporation 5,788,840 4,508,372 (7,326,928) – 2,970,284 – 2,970,284
Fresh N' Famous Foods, Inc. 1,474,353 6,842,744 (7,197,266) – 1,119,831 – 1,119,831
Red Ribbon Bakeshop, Inc. 1,066,727 2,545,564 (2,472,263) – 1,140,028 – 1,140,028
Mang Inasal Philippines Inc. 416,580 651,564 (721,563) – 346,581 – 346,581
Honeybee Foods Corporation 7,406,929 785,390 (231,372) – 7,960,947 – 7,960,947
Tokyo Teriyaki Corporation 1,030,370 138,487 (51,112) – 1,117,745 – 1,117,745
Red Ribbon Bakeshop, Inc. (USA) 730,459 520,961 (115,934) – 1,135,486 – 1,135,486
Jollibee Worldwide Pte. Ltd. 2,924,866 982,547 (478,805) – 3,428,608 – 3,428,608
Jollibee Vietnam Corporation Ltd. 2,330,146 349,617 (480,668) – 2,199,095 – 2,199,095
Jollibee (China) Food & Beverage Management Co. Ltd.
(formerly Shanghai Chunlv Co. Ltd.) 354,553 2,051,015 (440,752) – 1,964,816 – 1,964,816
Burger King Entities 3,501,502 4,031,108 (3,214,862) – 4,317,748 – 4,317,748
SuperFoods Group 3,990,169 33,746 (1,503,223) – 2,520,692 – 2,520,692
JSF Investments Pte. Ltd. 2,072,166 162,296 (104,307) – 2,130,155 – 2,130,155
Super Magnificent Coffee Co. Ltd. 16,767,158 1,441,120 (477,025) – 17,731,253 – 17,731,253
SJBF LLC 9,974,098 924,800 (290,434) – 10,608,464 – 10,608,464
ICT LLC 1,320,338 96,876 (135,294) – 418,148 863,772 1,281,920
JBM LLC – 158,510 (22,390) – 136,120 136,120
FCJB Foods, Inc. – 20,153 – – 20,153 20,153
Others 2,292,766 2,506,644 (1,231,154) – 3,568,256 – 3,568,256
Total =78,925,754
P =59,725,187
P (P
= 61,552,698) – =76,234,471
P =863,772
P =77,098,243
P
*In 2022, certain receivables were converted into equity or additional investments to the entity.
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
SCHEDULE D: LONG - TERM DEBT
FOR THE YEAR ENDED DECEMBER 31, 2023
Amount Shown Under Caption
Amount Shown Under Caption Noncurrent Portion of Long-term Debt
Amount Current Portion of Long-term Debt in in
Authorized by Related Consolidated Statement of Related Consolidated Statement of
Title of Issue and Type of Obligation Indenture Financial Position Financial Position
(Amounts in thousands)
US dollar-denominated:
Eight-year unsecured loan =1,544,823
P =1,544,823
P =–
P
Vietnam dong-denominated:
Five-year unsecured loan 69,600 69,600 –
Five-year unsecured loan 204,900 117,086 87,814
Five-year unsecured loan 367,941 133,797 234,144
Five-year unsecured loan 70,437 18,783 51,654
Five-year unsecured loan 742,400 139,200 603,200
Five-year unsecured loan 76,638 – 76,638
Five-year unsecured loan 7,399 1,085 6,314
SG dollar-denominated
Three-year unsecured loan 189,405 – 189,405
Philippine peso-denominated:
Seven-year unsecured loan 1,050,000 840,000 210,000
Seven-year unsecured loan 900,000 600,000 300,000
Seven-year unsecured loan 945,000 540,000 405,000
Five-year unsecured loan 3,000,000 1,000,000 2,000,000
Seven-year unsecured loan 500,000 200,000 300,000
Five-year unsecured loan 2,250,000 750,000 1,500,000
Five-year unsecured loan 750,000 250,000 500,000
Unamortized debt issue costs (51,500) (23,679) (27,821)
Total P
=12,617,043 P
=6,180,695 P
=6,436,348
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
SCHEDULE G: CAPITAL STOCK
FOR THE YEAR ENDED DECEMBER 31, 2023
Number of Shares Held by
Number of Shares Number of Shares Reserved
Number of shares Issued and for Options, Warrants, Directors, officers
Title of issue authorized Outstanding Conversions, and Other Rights Affiliates and employees Others
Preferred Shares 20,000,000 12,000,000 – – – 12,000,000
Common Stock 1,430,000,000 1,136,358,618 16,447,340 484,866,539 129,524,328 505,520,411
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
RECONCILIATION OF RETAINED EARNINGS AVAILABLE FOR DIVIDEND
DECLARATION
Adjustments:
Deferred tax assets - net, beginning (2,545,017,594)
Unrealized foreign exchange gain - net (except those
attributable to Cash and cash equivalents), beginning (436,063,108)
Accretion of interest on financial assets, beginning (95,230,163)
Unrealized gain on financial assets at fair value through profit
or loss (122,005,073)
Unappropriated Retained Earnings Available for Dividend
Declaration, beginning 25,801,656,519
Add (Less):
Dividend declarations during the year (3,045,799,915)
Treasury shares (180,511,491)
(3,226,311,406)
Unrealized gain
Less: Equity in net earnings of joint venture (138,470,811)
Interest income on accretion of financial instruments (9,505,599)
Unrealized gain on financial assets at fair value through profit
or loss (4,880,000)
(152,856,410)
Realized gain
Add: Realized foreign exchange gain - net of cash related 70,721,879
70,721,879
Other items
Net decrease in recognized deferred tax assets 123,384,459
Recognized deferred tax related to right-of-use assets
and lease liabilities 1,114,693,015
Unappropriated Retained Earnings Available for Dividend
Declaration, ending P
=32,701,198,374
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
CONGLOMERATE MAP
SyCip Gorres Velayo & Co. Tel: (632) 8891 0307
6760 Ayala Avenue Fax: (632) 8819 0872
1226 Makati City ey.com/ph
Philippines
We have audited in accordance with Philippine Standards on Auditing, the consolidated financial
statements of Jollibee Foods Corporation Doing business under the name and style of Jollibee
(the Parent Company) and its subsidiaries (the Jollibee Group) as at December 31, 2023 and 2022, and for
each of the three years in the period ended December 31, 2023, and have issued our report thereon dated
March 8, 2024. Our audits were made for the purpose of forming an opinion on the basic consolidated
financial statements taken as a whole. The Supplementary Schedule on Financial Soundness Indicators,
including their definitions, formulas, calculation, and their appropriateness or usefulness to the intended
users, are the responsibility of the Jollibee Group’s management. These financial soundness indicators
are not measures of operating performance defined by Philippine Financial Reporting Standards (PFRS)
and may not be comparable to similarly titled measures presented by other companies. This schedule is
presented for the purpose of complying with Revised Securities Regulation Code Rule 68 issued by the
SEC and is not a required part of the basic consolidated financial statements prepared in accordance with
PFRSs. The components of these financial soundness indicators have been traced to the Jollibee Group’s
consolidated financial statements as at December 31, 2023 and 2022 and for each of the three years in the
period ended December 31, 2023 and no material exceptions were noted.
Mariecris N. Barbaso
Partner
CPA Certificate No. 97101
Tax Identification No. 202-065-716
BOA/PRC Reg. No. 0001, August 25, 2021, valid until April 15, 2024
BIR Accreditation No. 08-001998-108-2023, September 12, 2023, valid until September 11, 2026
PTR No. 10079905, January 5, 2024, Makati City
March 8, 2024
*SGVFS187686*
A member firm of Ernst & Young Global Limited
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
AND SUBSIDIARIES
SCHEDULE OF FINANCIAL SOUNDNESS INDICATORS
FOR THE YEARS ENDED DECEMBER 31, 2023 and 2022
2023 2022
i. Current ratio Current assets 1.09 1.22
Current liabilities
Cash and cash equivalents + Short-term investments + Current
ii. Acid test ratio receivables 0.63 0.64
Current liabilities
iii. Solvency ratio Net income (loss) + Depreciation and Amortization 0.16 0.15
Total liabilities
iv. Debt to equity ratio Total Debt* 0.70 0.71
Total Debt + Equity Attributable to Equity Holders of the Parent
Company
Net Debt to equity ratio Total Debt* – Cash and cash equivalents – Short-term investments 0.65 0.66
(Total Debt* – Cash and cash equivalents – Short-term investments) +
Equity attributable to Equity Holders of the Parent Company
v. Asset to equity ratio Total assets 3.59 3.75
Equity Attributable to Equity Holders of the Parent Company
vi. Interest rate coverage ratio Earnings before interest expense and taxes 3.29 3.35
Interest expense
-2-
2023 2022
vii. Return on equity Net Income Attributable to Equity Holders of the Parent Company 0.13 0.13
Average Equity Attributable to Equity Holders of the Parent Company
viii. Return on assets Net income 0.04 0.03
Total assets
ix. Net profit margin Net income 0.04 0.04
Revenue
x. Debt Service Coverage ratio Net income 0.06 0.05
Total liabilities
*Including both total current and total noncurrent liabilities
2023
Audited Parent
Financial Statements
The following document has been received:
Company Information
____________________________________________________________________________
Document Information
____________________________________________________________________________
____________________________________________________________________________
7 7 4 8 7
COMPANY NAME
J O L L I B E E F O O D S C O R P O R A T I O N D O I
N G B U S I N E S S U N D E R T H E N A M E A N D
S T Y L E O F J O L L I B E E
1 0 / F J o l l i b e e P l a z a B u i l d i n g ,
1 0 F . O r t i g a s J r . A v e n u e , O r t i
g a s C e n t e r , P a s i g C i t y
Form Type Department requiring the report Secondary License Type, If Applicable
A A F S S E C N / A
COMPANY INFORMATION
Company’s Email Address Company’s Telephone Number Mobile Number
No. of Stockholders Annual Meeting (Month / Day) Fiscal Year (Month / Day)
10/F Jollibee Plaza Building, 10 F. Ortigas Jr. Avenue, Ortigas Center, Pasig City
NOTE 1: In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission within
thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated.
2: All Boxes must be properly and completely filled-up. Failure to do so shall cause the delay in updating the corporation’s records with the Commission
and/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from liability for its deficiencies.
*SGVFS187611*
SyCip Gorres Velayo & Co. Tel: (632) 8891 0307
6760 Ayala Avenue Fax: (632) 8819 0872
1226 Makati City ey.com/ph
Philippines
Opinion
We have audited the parent company financial statements of Jollibee Foods Corporation Doing business
under the name and style of Jollibee (the Company), which comprise the parent company statements of
financial position as at December 31, 2023 and 2022, and the parent company statements of
comprehensive income, parent company statements of changes in equity and parent company statements
of cash flows for the years then ended, and notes to the parent company financial statements, including a
summary of significant accounting policies.
In our opinion, the accompanying parent company financial statements present fairly, in all material
respects, the financial position of the Company as at December 31, 2023 and 2022, and its financial
performance and its cash flows for the years then ended in accordance with Philippine Financial
Reporting Standards (PFRSs).
We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Parent Company Financial Statements section of our report. We are independent of the Company
in accordance with the Code of Ethics for Professional Accountants in the Philippines (Code of Ethics)
together with the ethical requirements that are relevant to our audit of the parent company financial
statements in the Philippines, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Management and Those Charged with Governance for the Parent Company
Financial Statements
Management is responsible for the preparation and fair presentation of the parent company financial
statements in accordance with PFRSs, and for such internal control as management determines is
necessary to enable the preparation of parent company financial statements that are free from material
misstatement, whether due to fraud or error.
*SGVFS187611*
A member firm of Ernst & Young Global Limited
-2-
In preparing the parent company financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Parent Company Financial Statements
Our objectives are to obtain reasonable assurance about whether the parent company financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with PSAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these parent company financial statements.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the parent company financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the parent company financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company financial statements,
including the disclosures, and whether the parent financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
*SGVFS187611*
A member firm of Ernst & Young Global Limited
-3-
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
The supplementary information required under Revenue Regulations 15-2010 for purposes of filing with
the Bureau of Internal Revenue is presented by the management of Jollibee Foods Corporation Doing
business under the name and style of Jollibee in a separate schedule. Revenue Regulations 15-2010
requires the information to be presented in the notes to financial statements. Such information is not a
required part of the basic financial statements. The information is also not required by Revised Securities
Regulation Code Rule 68. Our opinion on the basic financial statements is not affected by the
presentation of the information in a separate schedule.
The engagement partner on the audit resulting in this independent auditor’s report is Mariecris N. Barbaso.
Mariecris N. Barbaso
Partner
CPA Certificate No. 97101
Tax Identification No. 202-065-716
BOA/PRC Reg. No. 0001, August 25, 2021, valid until April 15, 2024
BIR Accreditation No. 08-001998-108-2023, September 12, 2023, valid until September 11, 2026
PTR No. 10079905, January 5, 2024, Makati City
March 8, 2024
*SGVFS187611*
A member firm of Ernst & Young Global Limited
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
PARENT COMPANY STATEMENTS OF FINANCIAL POSITION
December 31
2023 2022
ASSETS
Current Assets
Cash and cash equivalents (Notes 5, 31 and 32) =
P6,259,094,559 =
P5,856,718,925
Receivables and contract assets (Notes 6, 31 and 32) 10,460,642,360 11,864,616,195
Inventories (Note 7) 409,422,767 394,577,564
Current portion of:
Advances to related parties (Notes 29, 31 and 32) 1,375,044,400 1,800,044,400
Operating lease receivables (Notes 30, 31 and 32) 58,292,011 48,281,474
Other current assets (Notes 8, 31 and 32) 4,036,696,822 3,803,481,443
Total Current Assets 22,599,192,919 23,767,720,001
Noncurrent Assets
Financial assets at fair value through profit or loss (Notes 9, 31 and 32) 30,588,040 25,708,040
Investments in subsidiaries and interests in and advances to
joint ventures and associates (Note 10) 72,601,722,494 71,943,088,722
Property, plant and equipment (Note 11) 6,661,606,680 6,367,537,903
Intangible assets (Note 12) 134,781,499 156,312,670
Investment properties (Notes 13 and 32) 573,948,114 510,127,981
Right-of-use assets (Note 30) 4,276,512,420 4,527,752,574
Noncurrent portion of:
Advances to related parties (Notes 29, 31 and 32) 1,912,696,804 2,237,888,504
Lease receivables (Notes 30, 31 and 32) 717,561,052 711,315,713
Operating lease receivables (Notes 30, 31 and 32) 32,107,074 ‒
Deferred tax assets - net (Note 26) 1,112,147,477 1,037,333,164
Other noncurrent assets (Notes 15, 31 and 32) 676,165,262 658,299,989
Total Noncurrent Assets 88,729,836,916 88,175,365,260
=
P111,329,029,835 =
P111,943,085,261
(Forward)
*SGVFS187611*
-2-
December 31
2023 2022
Noncurrent Liabilities
Noncurrent portion of:
Due to related parties (Note 29) =
P7,314,327,225 =
P8,294,167,364
Long-term debt (Notes 18, 31 and 32) 2,899,607,113 5,862,999,899
Lease liabilities (Notes 30, 31 and 32) 5,338,610,372 5,526,866,959
Provisions (Note 17) 469,134,868 719,059,302
Contract liabilities (Note 21) 296,215,000 221,395,000
Pension liability (Note 27) 1,385,069,389 1,162,141,527
Total Noncurrent Liabilities 17,702,963,967 21,786,630,051
Total Liabilities 32,816,676,462 39,790,245,305
Equity
Capital stock:
Preferred (Note 19) 12,000,000,000 12,000,000,000
Common - net of subscriptions receivable (Note 19) 1,132,330,884 1,131,216,755
Additional paid-in capital (Note 28) 12,554,037,057 11,991,189,885
Remeasurement loss on pension - net of tax (Note 27) (617,585,937) (489,027,650)
Retained earnings (Note 20):
Appropriated for future expansion 18,700,000,000 18,700,000,000
Unappropriated 34,924,082,860 28,999,972,457
78,692,864,864 72,333,351,447
Less cost of common stock held in treasury (Notes 19 and 20) 180,511,491 180,511,491
Total Equity 78,512,353,373 72,152,839,956
=
P111,329,029,835 =
P111,943,085,261
*SGVFS187611*
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME
REVENUES
Net sales (Notes 21 and 29) =
P30,744,304,272 =
P26,346,745,425
Royalty and set-up fees (Notes 21 and 29) 9,443,752,048 7,953,218,941
Rent income (Notes 13, 29 and 30) 329,306,557 291,618,150
Service revenue and others (Notes 21 and 29) 4,325,628,970 4,704,595,221
44,842,991,847 39,296,177,737
PFRS 15 impact on system-wide advertising fees (Note 21) 2,928,847,348 2,460,068,174
47,771,839,195 41,756,245,911
COST OF SALES AND SERVICES (Notes 22 and 29)
Cost of sales 23,985,843,938 20,696,248,282
Cost of services 3,484,980,543 3,076,078,652
27,470,824,481 23,772,326,934
GROSS PROFIT 20,301,014,714 17,983,918,977
EXPENSES
General and administrative expenses (Notes 23 and 29) 9,078,215,583 8,051,131,067
Advertising and promotions (Note 29) 223,373,728 205,896,310
9,301,589,311 8,257,027,377
*SGVFS187611*
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
PARENT COMPANY STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
Remeasurement Retained Earnings (Note 20) Cost of Common
Subscriptions Additional Loss on Pension - Appropriated Stock Held in
Capital Stock (Note 19) Receivable Paid-in Capital Net of Tax for Future Treasury Total
Preferred Common (Note 19) (Note 28) (Note 27) Expansion Unappropriated (Notes 19 and 20) Equity
Balance as at January 1, 2023 P
= 12,000,000,000 =
P1,131,216,755 =–
P P
= 11,991,189,885 (P
=489,027,650) P
= 18,700,000,000 P
= 28,999,972,457 (P
=180,511,491) P
= 72,152,839,956
Net income during the year – – – – – – 8,969,910,318 – 8,969,910,318
Other comprehensive loss – – – – (128,558,287) – – – (128,558,287)
Total comprehensive income (loss) – – – – (128,558,287) – 8,969,910,318 – 8,841,352,031
Movements in other equity accounts:
Issuances of common stock (Note 19) – 1,114,129 – 207,927,254 – – – – 209,041,383
Cash dividends (Note 20) – – – – – – (3,045,799,915) – (3,045,799,915)
Cost of stock options granted to own employee (Notes 23, 26 and 28) – – – 278,747,046 – – – – 278,747,046
Cost of stock options granted to employees of subsidiaries
(Notes 10 and 28) – – – 75,115,463 – – – – 75,115,463
Deferred tax on unexercised stock options (Note 26) – – – 1,057,409 – – – – 1,057,409
Balances at December 31, 2023 P
= 12,000,000,000 =
P1,132,330,884 =–
P P
= 12,554,037,057 (P
=617,585,937) P
= 18,700,000,000 P
= 34,924,082,860 (P
=180,511,491) P
= 78,512,353,373
Balance as at January 1, 2022 =
P12,000,000,000 =
P1,124,342,117 (P
=17,177,884) =
P10,230,967,491 (P
=687,347,598) =
P18,700,000,000 =
P21,151,320,310 (P
=180,511,491) =
P62,321,592,945
Net income during the year – – – – – – 10,884,854,835 – 10,884,854,835
Other comprehensive income – – – – 198,319,948 – – – 198,319,948
Total comprehensive income – – – – 198,319,948 – 10,884,854,835 – 11,083,174,783
Movements in other equity accounts:
Issuances of common stock (Note 19) – 8,883,935 – 1,589,032,674 – – – – 1,597,916,609
Cash dividends (Note 20) – – – – – – (3,036,202,688) – (3,036,202,688)
Reversal of subscription receivable – (2,009,297) 17,177,884 (15,168,587) – – – – –
Cost of stock options granted to own employee (Notes 23, 26 and 28) – – – 134,865,429 – – – – 134,865,429
Cost of stock options granted to employees of subsidiaries
(Notes 10 and 28) – – – 50,150,853 – – – – 50,150,853
Deferred tax on unexercised stock options (Note 26) – – – 1,342,025 – – – – 1,342,025
Balances at December 31, 2022 =
P12,000,000,000 =
P1,131,216,755 =
P– =
P11,991,189,885 (P
=489,027,650) =
P18,700,000,000 =
P28,999,972,457 (P
=180,511,491) =
P72,152,839,956
See accompanying Notes to Parent Company Financial Statements.
*SGVFS187611*
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
PARENT COMPANY STATEMENTS OF CASH FLOWS
(Forward)
*SGVFS187611*
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*SGVFS187611*
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
NOTES TO PARENT COMPANY FINANCIAL STATEMENTS
1. General Information
Corporate Information
Jollibee Foods Corporation Doing business under the name and style of Jollibee (the Company/Parent
Company) is a Philippine company primarily involved in the development, operations and franchising
of Quick Service Restaurants (QSR) under the “Jollibee” trade name mainly in the Philippines. The
operations and franchising of Jollibee QSR outside the Philippines are handled through the
Company’s subsidiaries, investees and franchisees. The Company was incorporated and registered
with the Philippine Securities and Exchange Commission (SEC) on January 11, 1978.
On June 1, 2021, the BOD of the Company approved the amendment to the Second Article of the
Articles of Incorporation (AOI) to clarify and ensure, for avoidance of doubt of the Parent Company,
in pursuit of its primary business purpose, can invest in, acquire, own, hold, use, sell, assign, transfer,
lease, mortgage, exchange, or otherwise dispose of real and personal properties, of every kind and
description, or interests therein. The amendment of AOI of the Parent Company was approved by the
Parent Company’s shareholders during the Parent Company’s annual stockholders’ meeting on
June 25, 2021, and by the Philippine SEC on August 11, 2021.
The Company has subsidiaries and investees also engaged in the development, operations and
franchising of restaurants under the trade names “Greenwich”, “Chowking”, “Yonghe King”, “Red
Ribbon”, “Hong Zhuang Yuan”, “Mang Inasal”, “Burger King”, “Highlands Coffee”, “Smashburger”,
“Tortazo”, “Tim Ho Wan”, “The Coffee Bean & Tea Leaf”, “Panda Express”, “Yoshinoya”,
“Milksha” and “Common Man Coffee Roasters”. The Parent Company is also primarily organized to
invest in, acquire, own, hold, use, sell, assign, transfer, lease, mortgage, exchange, or otherwise
dispose of real and personal properties, of every kind and description, or interests in the foregoing,
pursuant to its business objectives. Other activities of the Parent Company and its subsidiaries
(collectively referred to as “Jollibee Group") include manufacturing and support services for the QSR
systems and other business activities. The list of the Company’s subsidiaries is presented in Note 10.
The Company’s common and preferred shares are listed and traded in the Philippine Stock Exchange
beginning July 14, 1993 and October 14, 2021, respectively.
The registered office address of the Company is 10/F Jollibee Plaza Building, 10 F. Ortigas Jr.
Avenue, Ortigas Center, Pasig City.
*SGVFS187611*
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Basis of Preparation
The accompanying parent company financial statements have been prepared on the historical cost
basis, except for financial assets at fair value through profit or loss (FVTPL) which are measured at
fair value. The parent company financial statements are presented in Philippine peso, which is the
Company’s functional and presentation currency under Philippine Financial Reporting Standards
(PFRS). All values are rounded to the nearest peso, except when otherwise indicated.
Statement of Compliance
The accompanying parent company financial statements have been prepared in compliance with
PFRS.
Unless otherwise indicated, adoption of these new standards did not have an impact on the parent
financial statements of the Company.
The amendments provide guidance and examples to help entities apply materiality judgements to
accounting policy disclosures. The amendments aim to help entities provide accounting policy
disclosures that are more useful by:
Replacing the requirement for entities to disclose their ‘significant’ accounting policies with a
requirement to disclose their ‘material’ accounting policies, and
Adding guidance on how entities apply the concept of materiality in making decisions about
accounting policy disclosures.
The amendments introduce a new definition of accounting estimates and clarify the distinction
between changes in accounting estimates and changes in accounting policies and the correction of
errors. Also, the amendments clarify that the effects on an accounting estimate of a change in an
input or a change in a measurement technique are changes in accounting estimates if they do not
result from the correction of prior period errors.
Amendments to PAS 12, Deferred Tax related to Assets and Liabilities arising from a Single
Transaction
The amendments narrow the scope of the initial recognition exception under PAS 12, so that it no
longer applies to transactions that give rise to equal taxable and deductible temporary differences.
*SGVFS187611*
-3-
The amendments also clarify that where payments that settle a liability are deductible for tax
purposes, it is a matter of judgement (having considered the applicable tax law) whether such
deductions are attributable for tax purposes to the liability recognized in the financial statements
(and interest expense) or to the related asset component (and interest expense).
Amendments to PAS 12, International Tax Reform – Pillar Two Model Rules
The amendments introduce a mandatory exception in PAS 12 from recognizing and disclosing
deferred tax assets and liabilities related to Pillar Two income taxes.
The amendments also clarify that PAS 12 applies to income taxes arising from tax law enacted or
substantively enacted to implement the Pillar Two Model Rules published by the Organization for
Economic Cooperation and Development (OECD), including tax law that implements qualified
domestic minimum top-up taxes. Such tax legislation, and the income taxes arising from it, are
referred to as ‘Pillar Two legislation’ and ‘Pillar Two income taxes’, respectively.
The temporary exception from recognition and disclosure of information about deferred taxes and
the requirement to disclose the application of the exception, apply immediately and
retrospectively upon adoption of the amendments in June 2023.
Meanwhile, the disclosure of the current tax expense related to Pillar Two income taxes and the
disclosures in relation to periods before the legislation is effective are required for annual
reporting periods beginning on or after January 1, 2023.
‘Pillar Two legislation’ has been enacted, or substantively enacted, in certain jurisdictions (i.e.,
United Kingdom and Japan) the Jollibee Group operates. The Legislation will be effective for the
Jollibee Group’s financial year beginning January 1, 2024. The Jollibee Group is in scope of the
enacted or substantively enacted legislation and has performed an assessment of the potential
exposure to ‘Pillar Two income taxes.’ The assessment of the potential exposure to ‘Pillar Two
income taxes’ was based on the most recent tax filings, country-by-country reporting and
financial statements for the covered entities of the Jollibee Group. Based on the assessment, the
Jollibee Group does not expect material exposure to ‘Pillar Two income taxes.’
However, for other jurisdictions (i.e., Hungary, Italy, Ireland and Vietnam) the respective ‘Pillar
Two legislations’ were enacted close to the reporting date. Therefore, the Jollibee Group is still
in the process of assessing the potential exposure to ‘Pillar Two income taxes’ as at December 31,
2023. The potential exposure, if any, to ‘Pillar Two income taxes’ is currently not known or
reasonably estimable.
*SGVFS187611*
-4-
The amendments are effective for annual reporting years beginning on or after January 1, 2024
and must be applied retrospectively. The Company is currently assessing the impact the
amendments will have on current practice and whether existing loan agreements may require
renegotiation.
The amendments specify how a seller-lessee measures the lease liability arising in a sale and
leaseback transaction in a way that it does not recognize any amount of the gain or loss that
relates to the right of use retained.
The amendments are effective for annual reporting periods beginning on or after January 1, 2024
and must be applied retrospectively. Earlier adoption is permitted and that fact must be disclosed.
The amendments are not expected to have a material impact to the Company.
The amendments specify disclosure requirements to enhance the current requirements, which are
intended to assist users of financial statements in understanding the effects of supplier finance
arrangements on an entity’s liabilities, cash flows and exposure to liquidity risk.
The amendments are effective for annual reporting periods beginning on or after January 1, 2024.
Earlier adoption is permitted and that fact must be disclosed. The amendments are not expected
to have a material impact to the Company.
*SGVFS187611*
-5-
The overall objective of PFRS 17 is to provide an accounting model for insurance contracts that
is more useful and consistent for insurers. In contrast to the requirements in PFRS 4, which are
largely based on grandfathering previous local accounting policies, PFRS 17 provides a
comprehensive model for insurance contracts, covering all relevant accounting aspects. The core
of PFRS 17 is the general model, supplemented by:
A specific adaptation for contracts with direct participation features (the variable fee
approach)
A simplified approach (the premium allocation approach) mainly for short-duration contracts.
On December 15, 2021, the Financial Reporting Standards Council (FRSC) amended the
mandatory effective date of PFRS 17 from January 1, 2023 to January 1, 2025. This is consistent
with Circular Letter No. 2020-62 issued by the Insurance Commission which deferred the
implementation of PFRS 17 by two (2) years after its effective date as decided by the
International Accounting Standards Board (IASB).
PFRS 17 is effective for reporting years beginning on or after January 1, 2025, with comparative
figures required. Early application is permitted. Adoption of this standard is not expected to
have any impact to the Company.
The amendments specify how an entity should assess whether a currency is exchangeable and
how it should determine a spot exchange rate when exchangeability is lacking.
The amendments are effective for annual reporting periods beginning on or after January 1, 2025.
Earlier adoption is permitted and that fact must be disclosed. When applying the amendments, an
entity cannot restate comparative information. The amendments are not expected to have a
material impact to the Company.
Deferred effectivity
Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or Contribution
of Assets between an Investor and its Associate or Joint Venture
The amendments address the conflict between PFRS 10 and PAS 28 in dealing with the loss of
control of a subsidiary that is sold or contributed to an associate or joint venture. The
amendments clarify that a full gain or loss is recognized when a transfer to an associate or joint
venture involves a business as defined in PFRS 3. Any gain or loss resulting from the sale or
contribution of assets that does not constitute a business, however, is recognized only to the
extent of unrelated investors’ interests in the associate or joint venture.
On January 13, 2016, the FSRC deferred the original effective date of January 1, 2016 of the said
amendments until the IASB completes its broader review of the research project on equity
accounting that may result in the simplification of accounting for such transactions and of other
aspects of accounting for associates and joint ventures.
*SGVFS187611*
-6-
The material accounting policies adopted in the preparation of the parent company financial
statements are summarized below:
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their best
economic interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
The fair value for financial instruments traded in active markets at the reporting date is based on their
quoted price or binding dealer price quotations, without any deduction for transaction costs. Where
the Company has financial assets and financial liabilities with offsetting positions in market risks or
counterparty credit risk, it has elected to use the measurement exception to measure the fair value of
its net risk exposure by applying the bid or ask price to the net open position as appropriate. For all
other financial instruments not traded in an active market, the fair value is determined by using
valuation techniques deemed to be appropriate in the circumstances. Valuation techniques include
the market approach (i.e., using recent arm’s length market transactions adjusted as necessary and
reference to the current market value of another instrument that is substantially the same), the income
approach (i.e., discounted cash flow analysis and option pricing models making as much use of
available and supportable market data as possible) and the cost approach (i.e., based on the amount
required to replace the service capacity of an asset).
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the parent company financial
statements are categorized within the fair value hierarchy, described, as follows, based on the lowest-
level input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest-level input that is significant to the fair value
measurement is directly or indirectly observable
Level 3 - Valuation techniques for which the lowest-level input that is significant to the fair value
measurement is unobservable
*SGVFS187611*
-7-
For assets and liabilities that are recognized in the parent company financial statements on a recurring
basis, the Company determines whether transfers have occurred between levels in the hierarchy by
reassessing categorization (based on the lowest-level input that is significant to the fair value
measurement as a whole) at the end of each reporting period.
The Company’s management determines the policies and procedures for both recurring fair value
measurement and non-recurring measurement. At each reporting date, management analyzes the
movements in the values of assets and liabilities which are required to be remeasured or reassessed as
per the Company’s accounting policies. For this analysis, management verifies the major inputs
applied in the latest valuation by agreeing the information in the valuation computation to contracts
and other relevant documents.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities
based on the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy as explained above.
Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
Date of Recognition. The Company recognizes a financial asset or a financial liability in the
statements of financial position, when it becomes a party to the contractual provisions of the
instrument. Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the marketplace (regular way trades) are recognized on the
trade date, i.e., the date that the Company commits to purchase or sell the asset.
Financial Assets
Initial Recognition and Measurement. Financial assets are classified, at initial recognition, as
subsequently measured at amortized cost, fair value through other comprehensive income (FVOCI)
and FVTPL.
The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Company’s business model for managing them. With the exception
of trade receivables that do not contain a significant financing component or for which the Company
has applied the practical expedient, the Company initially measures a financial asset at its fair value
plus, in the case of a financial asset not at FVTPL, transaction costs. Trade receivables that do not
contain a significant financing component or for which the Company has applied the practical
expedient are measured at the transaction price determined under PFRS 15.
In order for a financial asset to be classified and measured at amortized cost or FVOCI, it needs to
give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument
level.
*SGVFS187611*
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The Company’s business model for managing financial assets refers to how it manages its financial
assets in order to generate cash flows. The business model determines whether cash flows will result
from collecting contractual cash flows, selling the financial assets, or both.
Subsequent Measurement. For purposes of subsequent measurement, financial assets are classified in
four categories:
The Company has no financial assets at FVOCI as at December 31, 2023 and 2022.
Financial Assets at Amortized Cost (Debt Instruments). This category is the most relevant to the
Company. The Company measures financial assets at amortized cost if both of the following
conditions are met:
The financial asset is held within a business model with the objective to hold financial assets in
order to collect contractual cash flows; and
The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest rate (EIR)
method and are subject to impairment. Gains and losses are recognized in profit or loss when the
asset is derecognized, modified or impaired.
The Company’s cash in banks, short-term deposits, receivables (excluding statutory receivables),
advances to related parties, lease receivables and refundable deposits are classified under this
category as at December 31, 2023 and 2022.
Financial Assets at FVTPL. Financial assets at FVTPL include financial assets held for trading,
financial assets designated upon initial recognition at FVTPL, or financial assets mandatorily required
to be measured at fair value. Financial assets are classified as held for trading if they are acquired for
the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded
derivatives, are also classified as held for trading unless they are designated as effective hedging
instruments. Financial assets with cash flows that are not solely payments of principal and interest
are classified and measured at FVTPL, irrespective of the business model. Notwithstanding the
criteria for debt instruments to be classified at amortized cost or FVOCI, as described above, debt
instruments may be designated at FVTPL on initial recognition if doing so eliminates, or significantly
reduces, an accounting mismatch.
Financial assets at FVTPL are carried in the parent company statement of financial position at fair
value with net changes in fair value recognized in the parent company statement of comprehensive
income.
The Company’s investments in golf and leisure club shares are classified under this category as at
December 31, 2023 and 2022.
*SGVFS187611*
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Impairment of Financial Assets. The Company recognizes an allowance for expected credit loss
(ECLs) for all debt instruments not held at FVTPL. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and all the cash flows the Company
expects to receive discounted at an approximation of the original EIR. The expected cash flows will
include cash flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
ECLs are recognized in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).
For cash in banks and short-term deposits, the Company applies the low credit risk simplification.
The probability of default and loss given defaults are publicly available and are considered to be low
credit risk investments. It is the Company’s policy to measure ECLs on such instruments on a 12-
month basis. However, when there has been a significant increase in credit risk since origination, the
allowance will be based on the lifetime ECL. The Company assesses that there is significant increase
in credit risk of a financial asset when default occurs.
For trade receivables and contract assets, the Company applies a simplified approach in calculating
ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss
allowance based on lifetime ECLs at each reporting date. The Company has established a provision
matrix that is based on its historical credit loss experience, adjusted for forward-looking factors
specific to the debtors and the economic environment.
For advances to related parties, refundable deposits and lease receivables, the Company applies the
general approach and calculates ECL based on the 12-month ECLs or lifetime ECLs, depending on
whether there has been a significant increase in credit risk on the financial instruments since initial
recognition.
The Company considers a financial asset in default when contractual payments are 30 days past due.
However, in certain cases, the Company may also consider a financial asset to be in default when
internal or external information indicates that the Company is unlikely to receive the outstanding
contractual amounts in full before taking into account any credit enhancements held by the
Company. A financial asset is written off when there is no reasonable expectation of recovering the
contractual cash flows.
The Company incorporates forward-looking information into both its assessment of whether the
credit risk of an instrument has increased significantly since its initial recognition and its
measurement of ECL. To do this, the Company has considered a range of relevant forward-looking
macro-economic assumptions for the determination of unbiased general industry adjustments and any
related specific industry adjustments that support the calculation of ECLs.
Based on the Company’s evaluation and assessment and after taking into consideration external
actual and forecast information, the Company considers two or more economic scenarios and the
relative probabilities of each outcome. External information includes economic data and forecasts
published by governmental bodies, monetary authorities and selected private-sector and academic
institutions.
*SGVFS187611*
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The Company has identified and documented key drivers of credit risk and credit losses of each
portfolio of financial instruments and, using an analysis of historical data, has estimated relationships
between macro-economic variables and credit risk and credit losses. The Company considers macro-
economic factors such as gross domestic product growth rates and inflation rates in its analysis.
Financial Liabilities
Initial Recognition and Measurement. Financial liabilities are classified, at initial recognition, as
financial liabilities at FVTPL, loans and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings,
and payables, net of directly attributable transaction costs.
Loans and Borrowings, and Payables. This is the category relevant to the Company. After initial
recognition, interest-bearing loans and borrowings, and payables are subsequently measured at
amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the
liabilities are derecognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and
fees or costs, including debt issue costs for the Company’s debts that are an integral part of the
EIR. The EIR amortization is included as interest expense in the parent company statement of
comprehensive income.
The Company’s financial liabilities include trade payables and other current liabilities (excluding
local and other taxes payable, liabilities to government agencies and accrual for gift certificates),
long-term debt, due to related parties and lease liabilities, which are all classified as loans and
borrowings as at December 31, 2023 and 2022.
Debt Issue Costs. Debt issue costs are specific incremental costs, other than those paid to the
lender, that are directly related to issuing a debt instrument. These are presented in the parent
company statement of financial position as a reduction from the related debt instrument and are
amortized through the EIR amortization process.
Derecognition of Financial Assets and Liabilities
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognized (i.e., removed from the Company’s parent company
statement of financial position) when:
The rights to receive cash flows from the asset have expired, or,
The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a
‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks
and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.
*SGVFS187611*
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When the Company has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the Company continues to recognize the transferred
asset to the extent of its continuing involvement. In that case, the Company also recognized an
associated liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum amount of consideration that
the Company could be required to repay.
Financial Liabilities. A financial liability is derecognized when the obligation under the liability is
discharged, cancelled or has expired. When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability and
the recognition of a new liability, and the difference in the respective carrying amounts is recognized
in the parent company statement of comprehensive income.
Contract Balances
Trade Receivables. A receivable represents the Company’s right to an amount of consideration that is
unconditional (i.e., only the passage of time is required before payment of the consideration is due).
Contract Assets. A contract asset is the right to consideration in exchange for goods or services
transferred to the customer. If the Company performs by transferring goods or services to a customer
before the customer pays consideration or before payment is due, a contract asset is recognized for
the earned consideration that is conditional.
Contract Liabilities. A contract liability is the obligation to transfer goods or services to a customer
for which the Company has received consideration (or an amount of consideration is due) from the
customer. If a customer pays consideration before the Company transfers goods or services to the
customer, a contract liability is recognized when the payment is made or the payment is due
(whichever is earlier). Contract liabilities are recognized as revenue when the Company performs
under the contract.
Inventories
Inventories are valued at the lower of cost and net realizable value. Costs are accounted for as
follows:
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Net realizable value of processed inventories is the estimated selling price in the ordinary course of
business, less estimated costs of completion and the estimated costs necessary to make the sale.
Net realizable value of food supplies, packaging, store and other supplies is the current replacement
cost.
Net realizable value of novelty items is the estimated selling price in the ordinary course of business,
less the estimated costs necessary to make the sale.
The initial cost of property, plant and equipment consists of its purchase price, including import
duties and nonrefundable taxes and any other costs directly attributable to bringing the asset to its
working condition and location for its intended use. Cost also includes any related asset retirement
obligation and interest incurred during the construction period on funds borrowed to finance the
construction of the asset. Expenditures incurred after the property, plant and equipment have been
put into operation, such as repairs and maintenance, are normally charged to profit or loss in the year
in which the costs are incurred. In situations where it can be clearly demonstrated that the
expenditures have resulted in an increase in the future economic benefits expected to be obtained
from the use of an item of property, plant and equipment beyond its originally assessed standard of
performance, the expenditures are capitalized as additional costs of property, plant and equipment.
Depreciation and amortization are calculated on a straight-line basis over the following estimated
useful lives of the assets:
The residual values, if any, useful lives and depreciation and amortization method of the assets are
reviewed at the end of each financial period and adjusted prospectively, if appropriate.
Fully depreciated assets are retained in the accounts until they are disposed or retired.
An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising from the derecognition of the
asset (calculated as the difference between the disposal proceeds and the carrying amount of the asset)
is recognized in profit or loss in the period the asset is derecognized.
*SGVFS187611*
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Construction in progress represents assets under construction and is stated at cost less any impairment
in value. This includes the cost of construction and other direct costs. Cost also includes interest on
borrowed funds incurred during the construction period. Construction in progress is not depreciated
until such time that the relevant assets are completed and ready for use.
Intangible Assets
Intangible assets acquired separately are measured at cost on initial recognition. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and any
accumulated impairment loss. The useful lives of intangible assets are assessed at the individual asset
level as either finite or indefinite.
Intangible assets with finite lives are amortized over the useful economic life using the straight-line
method and assessed for impairment whenever there is an indication that the intangible assets may be
impaired. At a minimum, the amortization period and the amortization method for an intangible asset
with a finite useful life are reviewed at least at each financial year-end. Changes in the expected
useful life or the expected pattern of consumption of future economic benefits embodied in the asset
are accounted for by changing the amortization period or method, as appropriate, and treated as
changes in accounting estimates.
The estimated useful lives used in amortizing the intangible assets are disclosed in Note 12.
Gains or losses arising from derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or
loss when the asset is derecognized.
Investment Properties
Investment properties consist of buildings and building improvements held by the Company for
capital appreciation and rental purposes. Investment properties are carried at cost, including
transaction costs, less accumulated depreciation and amortization and any impairment in value.
Investments in Subsidiaries
Investments in subsidiaries are accounted for at cost less any impairment in value. A subsidiary is an
entity controlled by the Company. The Company controls an entity when it is exposed or has rights
to variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity.
*SGVFS187611*
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The Company measures noncurrent asset held for sale at the lower of its carrying amount and fair
value less cost to sell.
The fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s-length
transaction between knowledgeable, willing parties, less costs of disposal. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset. For
an asset that does not generate largely independent cash inflows, the recoverable amount is
determined for the CGU to which the asset belongs. Impairment losses are recognized in profit or
loss in those expense categories consistent with the function of the impaired asset.
An assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment losses may no longer exist or may have decreased. If such indication exists,
the recoverable amount is estimated. A previously recognized impairment loss is reversed only if
there has been a change in the estimates used to determine the asset’s recoverable amount since the
last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased
to its recoverable amount. That increased amount cannot exceed the carrying amount that would have
been determined, net of depreciation and amortization, had no impairment loss been recognized for
the asset in prior years. Such reversal is recognized in profit or loss. After such a reversal, the
depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less
any residual value on a systematic basis over its remaining useful life.
Sale of Goods. Revenue from sale of goods is recognized at the point in time when control is
transferred to the customer, which is normally upon delivery. Sales returns and discounts are
deducted from sales to arrive at net sales shown in the parent company statement of comprehensive
income.
Royalty Fees. Revenue from royalty fees is recognized as the royalty accrues based on certain
percentages of the franchisees’ net sales.
Set-up Fees. Revenue from set-up fees is recognized on a straight-line basis over the term of the
franchise agreement and when performance obligations relating to the payment of set-up fees have
been satisfied.
Service Fees. Revenue is recognized in the period in which the service has been rendered.
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Management Fees. Revenue is recognized in the period in which the administration services has been
rendered based on a certain percentage of the total costs incurred.
Dividend Income
Dividend income is recognized when the Company’s rights as a shareholder to receive the payment is
established.
Interest Income
Interest income is recognized as the interest accrues, taking into account the effective yield on the
asset.
Other Income
Other income is recognized when there is an incidental economic benefit, other than the usual
business operations, that will flow to the Company through an increase in asset or reduction in
liability and that can be measured reliably.
Advertising and promotions expenses include costs incurred for advertising schemes and promotional
activities for new products.
Pension Benefits
The pension liability is the aggregate of the present value of the defined benefit obligation at the end
of the reporting period reduced by the fair value of plan assets.
The cost of providing benefits under the defined benefit plans is actuarially determined using the
projected unit credit method.
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Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance
policies. Plan assets are not available to the creditors of the Company, nor can they be paid directly
to the Company. Fair value of plan assets is based on market price information. When no market
price is available, the fair value of plan assets is estimated by discounting expected future cash flows
using a discount rate that reflects both the risk associated with the plan assets and the maturity or
expected disposal date of those assets (or, if they have no maturity, the expected period until the
settlement of the related obligations). If the fair value of the plan assets is higher than the present
value of the defined benefit obligation, the measurement of the resulting pension asset is limited to
the present value of economic benefits available in the form of refunds from the plan or reductions in
future contributions to the plan.
Share-based Payments
The Company has stock option plans granting management, consultants and selected employees an
option to purchase a fixed number of the Company’s shares of stock at a stated price during a
specified period (“equity-settled transactions”).
The cost of the options granted to the Company’s management, consultants and selected employees
that become vested is recognized in profit or loss with an equivalent credit to additional paid-in
capital over the period in which the performance and/or service conditions are fulfilled, ending on the
date on which the relevant employees become fully entitled to the award (“vesting date”).
The fair value is determined using the Black-Scholes Option Pricing Model. The cumulative expense
recognized for share-based transactions at each reporting date until the vesting date reflects the extent
to which the vesting period has expired and the Company’s best estimate of the number of equity
instruments that will ultimately vest. The charge or credit in profit or loss or the investment account
for a period represents the movement in cumulative expense recognized as of the beginning and end
of that period.
Where the terms of a share-based award are modified, at a minimum, an expense is recognized as if
the terms had not been modified. In addition, an expense is recognized for any modification, which
increases the total fair value of the share-based payment agreement, or is otherwise beneficial to
management, consultants and selected employees as measured at the date of modification.
Where a share-based award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognized for the award is recognized immediately. However, if a new award is
substituted for the cancelled award, and designated as a replacement award on the date that it is
granted, the cancelled and new awards are treated as if there were a modification of the original
award.
Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of the
agreement at inception date of whether the fulfillment of the arrangement is dependent on the use of a
specific asset or assets or the arrangement conveys a right to use the asset, even if that is not explicitly
specified in an arrangement.
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Company as Lessee. The Company applies a single recognition and measurement approach for all
leases, except for short-term leases and leases of low-value assets. The Company recognizes lease
liabilities to make lease payments and right-of-use assets representing the right to use the underlying
assets.
Right-of-Use Assets. The Company recognizes right-of-use assets at the commencement date of
the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured
at cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease
liabilities recognized, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received and estimate of costs to be incurred by the
lessee in dismantling and removing the underlying asset, restoring the site on which it is located
or restoring the underlying asset to the condition required by the terms and conditions of the
lease, unless those costs are incurred to produce inventories. Unless the Company is reasonably
certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-
of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life
and the lease term as follows:
Warehouses 15 - 35 years
Land 5 - 20.5 years
QSR outlets 2 - 25.5 years
Office and parking spaces 2 - 11 years
Lease Liabilities. At the commencement date of the lease, the Company recognizes lease
liabilities measured at the present value of lease payments to be made over the lease term. The
lease payments include fixed payments (including in substance fixed payments) less any lease
incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the
exercise price of a purchase option reasonably certain to be exercised by the Company and
payments of penalties for terminating a lease, if the lease term reflects the Company exercising
the option to terminate. The variable lease payments that do not depend on an index or a rate are
recognized as expense in the period on which the event or condition that triggers the payment
occurs.
In calculating the present value of lease payments, the Company uses the incremental borrowing
rate (IBR) at the lease commencement date if the interest rate implicit in the lease is not readily
determinable. After the commencement date, the amount of lease liabilities is increased to reflect
the accretion of interest and reduced for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a
change in the in-substance fixed lease payments or a change in the assessment to purchase the
underlying asset.
Short-term Leases and Leases of Low-value Assets. The Company applies the short-term lease
recognition exemption to its short-term leases of outside seating space and office space. It also
applies the lease of low-value assets recognition exemption to leases that are considered of low
value (i.e., below USD5,000 or approximately = P250,000). Lease payments on short-term leases
and leases of low-value assets are recognized as expense on a straight-line basis over the lease
term.
Subleases of Underlying Asset. The Company continues to account for the original lease (the
head lease) as a lessee and accounts for the sublease as the lessor (intermediate lessor).
*SGVFS187611*
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Company as Lessor. Leases which do not transfer to the lessee substantially all the risks and benefits
of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating
an operating lease are added to the carrying amount of the leased asset and recognized over the lease
term on the same basis as rent income. Rent income from operating leases is recognized as income in
profit or loss on a straight-line basis over the lease term and is recognized as income in profit or loss.
Company as an Intermediate Lessor. Sublease is classified at the inception date as a finance lease or
an operating lease. Subleases in which the Company determined that the lease term constitute a
major part of the economic life of the underlying asset and at the inception date, the present value of
the minimum lease payment amounts to substantially all of the fair value of the underlying asset are
classified as finance lease.
Derecognizes the right-of-use asset relating to the head lease that it transfers to the sublessee and
recognizes the net investment in the sublease;
Recognizes any difference between the right-of-use asset and the net investment in the sublease
in profit or loss; and,
Retains the lease liability relating to the head lease in its statement of financial position, which
represents the lease payments owed to the head lessor.
During the term of the sublease, the Company recognizes both finance income on the sublease and
interest expense on the head lease.
If the sublease is classified as an operating lease, the Company retains the lease liability and the right-
of-use asset relating to the head lease in its statement of financial position. During the term of the
sublease, the Company recognizes a depreciation charge for the right-of-use asset and interest on the
lease liability and recognizes rent income from the sublease.
Taxes
Current Tax. Current tax liabilities for the current and prior periods are measured at the amount
expected to be paid to the tax authority. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted at reporting date.
Current income tax relating to items recognized directly in equity is recognized directly in equity (not
in profit or loss). Management periodically evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to interpretation and establishes provisions
where appropriate.
Deferred Tax. Deferred tax is provided, using the balance sheet liability method, on all temporary
differences at reporting date between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes.
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Deferred tax liabilities are recognized for all taxable temporary differences, except:
where the deferred tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and, at the time of the transactions,
affects neither the accounting profit nor taxable profit; and,
Deferred tax assets are recognized for all deductible temporary differences and carryforward benefits
of unused tax credits from excess minimum corporate income tax (MCIT) over regular corporate
income tax (RCIT) and net operating loss carryover (NOLCO), to the extent that it is probable that
future taxable profit will be available against which the deductible temporary differences and
carryforward benefits of excess MCIT over RCIT and NOLCO can be utilized except:
where the deferred tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit; and
in respect of deductible temporary differences associated with investments in subsidiaries and
interests in joint ventures and associates, deferred tax assets are recognized only to the extent that
it is probable that the temporary differences will reverse in the foreseeable future and taxable
profit will be available against which the temporary differences can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient future taxable profit will be available to allow all or
part of the deferred tax assets to be utilized. Unrecognized deferred tax assets are reassessed at each
reporting date and are recognized to the extent that it has become probable that future taxable profit
will allow the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realized or the liability is settled, based on tax rates and tax laws that have been
enacted or substantially enacted at reporting date.
Deferred tax relating to items recognized outside profit or loss are recognized also outside profit or
loss. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or
directly in equity.
Deferred tax assets and liabilities are offset, if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the
same taxation authority.
Value-added Tax (VAT). Revenue, expenses and assets are recognized net of the amount of VAT, if
applicable.
When VAT from sales of goods and/or services (output VAT) exceeds VAT passed on from
purchases of goods or services (input VAT), the excess is recognized as part of “Trade payables and
other current liabilities” account in the Company’s statement of financial position. When VAT
passed on from purchases of gods or services (input VAT) exceeds VAT from sales of goods and/or
services (output VAT), the excess is recognized as part of “Other current assets” account in the
Company’s statement of financial position.
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Earnings per Share (EPS) Attributable to Equity Holders of the Parent Company
Basic EPS is calculated by dividing the net income for the year attributable to the equity holders of
the Parent Company, adjusted for the after-tax amounts of preferred dividends, by the weighted
average number of common shares outstanding during the year, after considering the retroactive
effect of stock dividend declaration, if any. The effect of cumulative distributions on perpetual
capital securities classified as equity in accordance with PAS 32, Financial Instruments:
Presentation, is deducted from net income attributable to equity holders of the Parent Company to
arrive at the adjusted amount.
Diluted EPS is computed by dividing the net income for the period attributable to the equity holders
of the Parent Company by the weighted average number of common shares outstanding during the
period, adjusted for any potential common shares resulting from the assumed exercise of outstanding
stock options. Outstanding stock options will have dilutive effect under the treasury stock method
only when the average market price of the underlying common share during the period exceeds the
exercise price of the option.
Where the EPS effect of the shares to be issued to management and employees under the stock option
plan would be anti-dilutive, the basic and diluted EPS would be stated at the same amount.
For the parent company financial statements, the EPS is presented on the basis of the consolidated net
income.
Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current market assessment of the time value
of money and, where appropriate, the risks specific to the liability. Where discounting is used, the
increase in the provision due to the passage of time is recognized as interest expense.
Business Segments
The Company is organized and managed separately according to the nature of business. The two
major operating businesses of the Company are food service and franchising. These operating
businesses are the basis upon which the Company reports its operating segment information presented
in the financial statements filed with the SEC.
*SGVFS187611*
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The Company believes the following represents a summary of these significant judgments, estimates
and assumptions and the related impact and associated risks on the parent company financial
statements.
Judgments
In the process of applying the Company’s accounting policies, management has made the following
judgments, apart from those involving estimations and assumptions, which have the most significant
effect on the amounts recognized in the parent company financial statements.
Revenue from Contracts with Customers - Determining the Timing of Satisfaction of Set-up Fees.
The Company undertakes activities prior to store opening (e.g., initial training, site development,
systems set-up, etc.) as indicated in the franchise agreement. The Company determines whether these
activities are capable of being distinct (i.e., whether the franchisee can benefit on each of these
activities on a standalone basis) and whether these activities are distinct within the context of the
franchise agreement (i.e., whether these activities can be separated from the franchise license granted
to the franchisee).
The Company determined that revenue from set-up fees should be recognized on a straight-line basis
over the term of the franchise agreement and when performance obligations relating to the payment
of set-up fees have been satisfied.
Principal versus Agent Consideration. The Company’s agreement with the franchisee includes the
right to charge the franchisee its share in the Company’s system-wide advertising and marketing
efforts as well as fees for the Company’s administration of various advertisements, network and
media placements. The Company determined that it is acting as principal for the system-wide
advertising because it is the Company who retains the right to direct the service provider of the
advertisements, network and media placements, and has the discretion on how to price the advertising
fee charges. The Company considers both the legal form and the substance of its agreement to
determine each party’s respective roles in the agreement.
Determining the Lease Term of Contracts with Renewal Options - Company as a Lessee. The
Company has lease contracts that include renewal options. The Company applies judgment in
evaluating whether it is reasonably certain whether or not to exercise the option to renew the lease.
That is, it considers all relevant factors that create an economic incentive for it to exercise the
renewal. After the commencement date, the Company reassesses the lease term if there is a
significant event or change in circumstances that is within its control and affects its ability to exercise
or not to exercise the option to renew the lease. The Company typically exercises its option to renew
for these leases because there will be a significant negative effect on operations if a replacement asset
is not readily available.
Impairment of Receivables and Contract Assets. The Company uses a provision matrix to calculate
ECLs for its receivables and contract assets. The provision rates are based on days past due.
*SGVFS187611*
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The provision matrix is initially based on the Company’s historical observed default rates. The
Company calibrates the matrix to adjust the historical credit loss experience with forward-looking
information. At every reporting date, the historical observed default rates are updated and changes in
the forward-looking estimates are analyzed.
The assessment of the correlation between historical observed default rates, forward-looking
information, and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in
circumstances and forecast of economic conditions. The Company’s historical credit loss experience
and forecast of economic conditions may also not be representative of customer’s actual default in the
future.
Net Realizable Value of Inventories. The Company writes down inventories to net realizable value,
through the use of an allowance account, whenever the net realizable value of inventories becomes
lower than cost due to damage, physical deterioration, obsolescence, changes in price levels or other
causes.
Estimates of net realizable value are based on the most reliable evidence available at the time the
estimates are made of the amounts the inventories are expected to be realized. These estimates take into
consideration fluctuations of prices or costs directly relating to events occurring after reporting date to the
extent that such events confirm conditions existing at the reporting date. The allowance account is
reviewed on a regular basis to reflect the accurate valuation in the financial records.
No provision for inventory obsolescence was recognized in 2023 and 2022. Reversal of allowance for
inventory obsolescence amounted to =P39.5 million and P
=34.2 million in 2023 and 2022, respectively (see
Notes 7 and 23). The carrying value of inventories amounted to P
=409.4 million and P
=394.6 million as at
December 31, 2023 and 2022, respectively (see Note 7).
Impairment of Property, Plant and Equipment, Intangible Assets, Investment Properties and Right-of-
Use Assets. The Company performs annual impairment review of property, plant and equipment,
intangible assets, investment properties and right-of-use assets when certain impairment indicators are
present. Management has identified store closures and pre-termination of underlying lease agreements as
impairment indicators and has performed impairment assessment on its property, plant and equipment
and right-of-use assets and has identified the related lease pre-termination costs, if any.
Determining the fair value of assets, which requires the determination of future cash flows expected to be
generated from the continued use and ultimate disposition of such assets, requires the Company to make
estimates and assumptions that can materially affect the parent company financial statements. Future
events could cause the Company to conclude that the assets are impaired. Any resulting impairment loss
could have a material adverse impact on the Company’s financial position and performance.
*SGVFS187611*
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The aggregate carrying amounts of property, plant and equipment, intangible assets, investment
properties and right-of-use assets as at December 31 follow:
2023 2022
Property, plant and equipment (see Note 11) =
P6,661,606,680 =
P6,367,537,903
Intangible assets (see Note 12) 134,781,499 156,312,670
Investment properties (see Note 13) 573,948,114 510,127,981
Right-of-use assets (see Note 30) 4,276,512,420 4,527,752,574
=
P11,646,848,713 =
P11,561,731,128
Impairment of Investments in Subsidiaries and Interests in and Advances to Joint Ventures and
Associates. An impairment test of investments in subsidiaries and interests in joint ventures and
associates is performed when events or changes in circumstances indicate that the carrying value may
not be recoverable. This requires management to make an estimate of the expected long-term growth
rates and earnings before interest, taxes, depreciation and amortization (EBITDA) from the
subsidiaries, joint ventures and associates, and also consider market data in determining a discount
rate in order to calculate the present value of those cash flows.
No provisions for impairment loss on interests in joint ventures and associates was recognized in
2023 and 2022. The carrying values of investments in subsidiaries and interests in joint ventures and
associates as at December 31 follow:
2023 2022
Investment in subsidiaries (see Note 10) =
P68,011,984,930 =
P67,482,217,265
Interests in joint ventures and associates (see Note 10) 4,589,737,564 4,460,871,457
=
P72,601,722,494 =
P71,943,088,722
Recognition of Deferred Tax Assets. The carrying amount of deferred tax assets at each reporting date is
reviewed and reduced to the extent that sufficient taxable profits will not be available to allow all or part
of the deferred tax assets to be utilized. The Company’s assessment on the recognition of deferred tax
assets is based on forecasted taxable income. This forecast is based on future expectations on revenues
and expenses as well as management’s plans and strategies.
Present Value of Defined Benefit Obligation. The pension expense as well as the present value of the
defined benefit obligations are determined using actuarial valuations. The actuarial valuation
involves making various assumptions. These include the determination of the discount rates and
future salary increases. Due to the complexity of the valuation, the underlying assumptions and its
long-term nature, defined benefit obligations are highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.
In determining the appropriate discount rate, management considers the interest rates of government
bonds that are denominated in the currency in which the benefits will be paid, with extrapolated
maturities corresponding to the expected duration of the defined benefit obligations.
Future salary increases are based on budgeted salary increases.
Pension liability amounted to =
P1,385.1 million and =
P1,162.1 million as at December 31, 2023 and
2022, respectively (see Note 27). The Company recognized net pension expense of P =243.1 million
and P
=242.4 million in 2023 and 2022, respectively (see Notes 22, 23 and 27).
*SGVFS187611*
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Share-based Payments. The Company measures the cost of its equity-settled transactions with
management, consultants and selected employees by reference to the fair value of the equity instruments
at the grant date. Estimating fair value for share-based payment transactions requires determining the
most appropriate valuation model, which is dependent on the terms and conditions of the grant. The
estimate also requires determining the most appropriate inputs to the valuation model including the
expected life of the share option, volatility and dividend yield and making assumptions about these
inputs. The fair value of the share option is being determined using the Black-Scholes Option Pricing
Model. The expected life of the stock options is based on the expected exercise behavior of the stock
option holders and is not necessarily indicative of the exercise patterns that may occur. The volatility is
based on the average historical price volatility which may be different from the expected volatility of the
shares of the Company.
Total expense arising from share-based payments recognized by the Company amounted to
=278.7 million and P
P =134.9 million in 2023 and 2022, respectively (see Notes 23 and 28).
Fair Value of Financial Assets and Liabilities. When the fair values of financial assets and financial
liabilities recorded or disclosed in the parent company statement of financial position cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation
techniques, including the discounted cash flow model. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgment is required in
establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk
and volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments.
The fair value of financial assets and liabilities are discussed in Note 32.
Provisions. The Company is currently involved in litigations, claims and disputes which are normal
to its business. Cost estimates for the resolution of these claims has been developed in consultation
with the Company’s legal counsels and based upon an analysis of potential results. The inherent
uncertainty over the outcome of these matters is brought about by the differences in the interpretation
and application of laws and rulings. Management believes that the ultimate liability, if any, with
respect to these litigations, claims and disputes will not materially affect the financial position and
performance of the Company.
2023 2022
Cash on hand P
=81,535,432 P73,874,726
=
Cash in banks 2,517,720,393 2,261,665,337
Short-term deposits 3,659,838,734 3,521,178,862
P
=6,259,094,559 =5,856,718,925
P
*SGVFS187611*
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Cash in banks earn interest at the respective savings or special demand deposit rates. Short-term
deposits are made for varying periods of up to three months depending on the immediate cash
requirements of the Company and earn interest at the respective short-term deposit rates.
Interest income earned from cash and cash equivalents amounted to =
P244.1 million and =
P84.8 million
in 2023 and 2022, respectively (see Note 24).
2023 2022
Trade receivables from:
Franchisees and customers P
=766,795,732 =1,492,543,014
P
Related parties (see Note 29) 8,404,206,771 8,641,607,698
9,171,002,503 10,134,150,712
Less allowance for impairment loss 276,900,079 262,304,059
8,894,102,424 9,871,846,653
Receivable from retirement fund (see Note 29) 664,212,576 419,015,441
Employee advances 367,007,648 1,510,784,356
Current portion of employee car plan receivables
(see Note 15) 23,394,609 16,679,402
Interest receivable 10,426,610 14,737,476
Others 21,344,562 29,247,867
9,980,488,429 11,862,311,195
Contract assets (see Note 29) 480,153,931 2,305,000
P
=10,460,642,360 =
P11,864,616,195
Trade receivables from franchisees and customers are noninterest-bearing and are generally
collectible on a 14-day term.
The terms and conditions of receivables from related parties are discussed in Note 29.
Receivable from retirement fund pertains to amounts advanced by the Company to its retiring
employees which are normally collected from the retirement fund in the next financial year.
Employee advances, current portion of employee car plan receivables, interest receivable, and
other receivables are expected to be collected within the next financial year.
Other receivables consist of receivables from the Social Security System (SSS) and insurance
claims.
The Company classifies unbilled revenues to franchisees and customers, and related parties as
contract assets. Additions to contract assets in 2023 amounting to =
P480.1 million pertain to
revenues earned during the year and will be billed in 2024. Contract assets as at December 31,
2022 amounting to =P2.3 million were billed and collected in 2023.
*SGVFS187611*
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The movements in allowance for impairment loss on trade receivables as at December 31 follow:
2023 2022
Balance at beginning of year P
=262,304,059 =165,221,169
P
Provision (see Note 23) 14,596,020 97,082,890
Balance at end of year P
=276,900,079 =262,304,059
P
7. Inventories
2023 2022
At cost:
Food supplies and processed inventories P
=178,724,360 =219,257,851
P
Packaging, store and other supplies 184,869,368 159,277,080
At net realizable value -
Novelty items 45,829,039 16,042,633
Total inventories at lower of cost and net
realizable value P
=409,422,767 =394,577,564
P
The Company assesses the age of novelty items on hand in determining the amount of provision for
inventory obsolescence or reversal to be recognized. Based on this assessment, the Company
recognized a reversal of allowance for inventory obsolescence of =
P39.5 million and =P34.3 million in
2023 and 2022, respectively (see Note 23).
The movements in the allowance for inventory obsolescence on novelty items as at December 31 are
as follows:
2023 2022
Balance at beginning of year P
=101,993,009 =136,246,660
P
Reversal (see Note 23) (39,456,108) (34,253,651)
Balance at end of year P
=62,536,901 =101,993,009
P
As at December 31, 2023 and 2022, no inventories have been pledged as security or collateral for any
of the Company’s liabilities.
*SGVFS187611*
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2023 2022
Prepaid expenses:
Taxes P
=3,181,743,624 =3,010,660,303
P
Rent 406,421,258 412,903,195
Car plan benefits 2,485,604 27,594,322
Other prepayments 142,412,834 113,627,711
Deposits to suppliers and others 303,633,502 238,695,912
P
=4,036,696,822 =3,803,481,443
P
Prepaid taxes represent creditable withholding taxes that the Company can apply against its
corporate income tax in the following year and prepaid real property taxes.
Prepaid rent pertains to short-term leases of store and office spaces that are paid in advance and
expected to be applied in the next financial year.
Other prepayments consist of unused office and operating supplies and the unexpired portion of
advertising, insurance and other expenses paid in advance expected to be utilized in the next
financial year.
Deposits to suppliers are generally applied to purchases of inventories and services within the
next financial year.
2023 2022
Balance at beginning of year P
=25,708,040 =38,438,040
P
Marked-to-market gain on financial assets at FVTPL
(see Note 25) 4,880,000 8,770,000
Disposal ‒ (21,500,000)
Balance at end of year P
=30,588,040 =25,708,040
P
The fair value of financial assets at FVTPL have been determined directly by reference to quoted
prices in active market or inputs other than quoted prices that are directly or indirectly observable
(see Note 32).
*SGVFS187611*
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10. Investments in Subsidiaries and Interests in and Advances to Joint Ventures and Associates
2023 2022
Subsidiaries:
Jollibee Worldwide Pte. Ltd. (JWPL) P
=30,726,624,092 =
P30,705,203,077
Jollibee Foods Corporation (USA)
(Jollibee USA) 23,593,554,842 23,370,502,640
Mang Inasal Philippines Inc. (Mang Inasal) 4,999,320,784 4,992,612,510
RRB Holdings, Inc. (RRBH) 3,483,930,342 3,478,443,355
Fresh N’ Famous Foods Inc. (Fresh N’ Famous) 2,481,562,581 2,381,468,654
Zenith Foods Corporation (Zenith) 2,111,745,176 2,101,954,137
Grandworth Resources Corporation
(Grandworth) 270,000,000 270,000,000
FCJB Foods, Inc. 150,000,000 ‒
BKTitans Inc. (BKTitans)* 71,042,011 68,861,249
Freemont Foods Corporation (Freemont) 59,930,558 59,930,558
Honeybee Foods Corporation (HFC) 29,494,367 27,564,063
Smashburger*** 21,025,330 19,200,195
The Coffee Bean and Tea Leaf (CBTL)** 13,754,847 6,476,827
68,011,984,930 67,482,217,265
Interest in and advances to joint ventures:
JBPX Foods Inc. (Panda Express) 410,616,116 281,750,009
Yoshinoya Jollibee Foods, Inc. (Yoshinoya) 95,000,000 95,000,000
505,616,116 376,750,009
Interests in associates:
CentralHub Industrial Centers, Inc. (Centralhub) 2,927,302,734 2,927,302,734
C-Joy Poultry Meats Production Inc.
(C-Joy Poultry) 1,146,233,214 1,146,233,214
C-Joy Poultry Realty Inc. (C-Joy Realty) 10,585,500 10,585,500
4,084,121,448 4,084,121,448
P
=72,601,722,494 P
=71,943,088,722
*Owned through Chanceux, Inc., which is wholly owned by the Company.
**Owned through JWPL, which is wholly owned by the Company.
***Owned through Jollibee USA, which is wholly owned by the Company.
2023 2022
Investments in subsidiaries:
Balance at beginning of year P
=67,482,217,265 P
=47,103,255,221
Additional investments 454,652,202 ‒
Share-based payments to employees
of subsidiaries (see Note 28) 75,115,463 50,150,853
Conversion of advances ‒ 20,341,926,191
68,011,984,930 67,495,332,265
Less allowance for impairment loss ‒ 13,115,000
Balance at end of year 68,011,984,930 67,482,217,265
(Forward)
*SGVFS187611*
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2023 2022
Interests in joint ventures and associates:
Balance at beginning of the year P
=4,460,871,457 =3,080,396,243
P
Advances to joint venture 128,866,107 ‒
Additional investments ‒ 629,999,700
Reclassification from assets held for sale and
property, plant and equipment
(see Notes 11 and 13) ‒ 1,524,368,000
4,589,737,564 5,234,763,943
Less allowance for impairment loss ‒ 773,892,486
Balance at end of year 4,589,737,564 4,460,871,457
P
=72,601,722,494 P
=71,943,088,722
Investments in Subsidiaries
Investments in Jollibee USA. In 2023, the Company made additional investments to Jollibee USA
totaling to =
P223.1 million to support the operations of its subsidiaries.
In 2022, the Company entered into a Share Purchase Agreement and Assignment with JWPL to
acquire 100% of the issued and outstanding shares of Bee Good! Inc. (BGI) for USD322.1 million
(P
=16,425.9 million) in exchange for combination of cash consideration of =
P6,480.9 million payable
within the next five (5) years and its receivable from JWPL of P
=9,945.0 million.
On the same day, the Company contributed its 100% share in BGI (P =16,425.9 million) and HFC
(P
=2,993.2 million) to Jollibee USA in exchange for Jollibee USA shares of stocks equivalent to
P
=19,419.1 million.
Investment in Fresh N’ Famous (FNF). On January 3, 2023, the Company made an additional
investment amounting to =
P81.6 million to support its operations.
Investment in RRBH. On November 30, 2022, in relation to the Equity Restructuring Agreement with
JWPL and RRBI USA, JWPL assigned its receivable from RRBI USA to the Company amounting to
USD16.6 million (P
=939.2 million). Subsequently, JFC assigned its receivable from RRBI USA to
RRBH. The assignment was treated as an additional equity contribution by the Company to its
wholly owned subsidiary, RRBH.
Investments in FCJB Foods, Inc. (FCJB). On August 3, 2023, Company and Food Collective, Pte.
Ltd. (FCPL) announced the establishment of a joint venture that will own and operate Tiong Bahru
Bakery and Common Man Coffee Roasters brands in the Philippines.
The joint venture entity, incorporated as FCJB on August 29, 2023, is 60% owned by the Parent
Company and 40% owned by FCPL. Both companies have committed to invest up to = P250.0 million
to the joint venture. On October 25, 2023, the Company made an initial investment to FCJB
amounting to = P150.0 million. FCJB started operations on December 8, 2023.
JBPX Foods Inc. (Panda Express). The Company made additional investments amounting to
P
=150.0 million and = P65.7 million on November 11, 2022 and August 12, 2021, respectively,
proportionate to its ownership interest in Panda Express.
*SGVFS187611*
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Yoshinoya Jollibee Foods, Inc. (Yoshinoya). On August 12, 2022, the Company made an additional
investment amounting to =
P30.0 million proportionate to its ownership interest to partially fund the
store expansion of Yoshinoya.
Advances to a Joint Venture. On July 14, 2023, the Parent Company extended a loan to JBPX
amounting to ₱125.0 million subject to a variable interest rate based on the sum of six (6) month PHP
BVAL plus spread of 0.7% to be repriced and paid semi-annually. The loan is payable in full on the
4th year from the date of the agreement. As at December 31, 2023, accrued interest from the loan
amounted to ₱3.9 million.
Interests in Associates
CentralHub. On February 24, 2022, the Philippine SEC issued the confirmation of valuation of such
land assets. Upon fulfillment of all closing conditions, the Company will exchange its land assets for
additional shares of common stock of CentralHub.
On March 24, 2022, upon the fulfillment of all closing conditions as required by the Shareholders’
Agreement, the Company conveyed its land assets with a carrying value of = P217.8 million for a fair
value of =
P1,524.4 million to CentralHub in exchange for an additional 13.24% ownership interest.
Consequently, the exchange resulted to a gain amounting to =P1,306.6 million (see Notes 11,
14 and 25). Investment in CentralHub includes 1,240,188,685 common shares with par value of
P
=0.01 in CentralHub resulting from the tax-free exchange of real properties covered by TCT
Nos. 576032, 576033, 576034, 576035 and PT-69160. The real properties were acquired for a total
cost of =
P218.6 million.
2023 2022
JWPL P
=21,421,017 =13,937,722
P
Fresh N’ Famous 18,493,927 8,715,442
Zenith 9,791,038 4,731,311
CBTL 7,278,020 71,622
Mang Inasal 6,708,274 2,382,315
RRBH 5,486,987 2,521,830
BKTitans 2,180,762 699,200
HFC 1,930,303 6,776,996
Smashburger 1,825,135 10,314,415
P
=75,115,463 =50,150,853
P
*SGVFS187611*
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The Company’s subsidiaries as at December 31, 2023 and 2022 include the following:
2023 2022
Country of Direct Indirect Direct Indirect
Incorporation Principal Activities Ownership Ownership Ownership Ownership
Fresh N’ Famous Foods Inc. (Fresh N’ Famous) Philippines Food service 100 – 100 –
Chowking Food Corporation USA United States
of America
(USA) Holding company – 100 – 100
Zenith Foods Corporation (Zenith) Philippines Food service 100 – 100 –
Pinnacle Quality Food Inc. (PQF) (h) Philippines Food service – 100 – 100
Freemont Foods Corporation (Freemont) Philippines Food service 100 – 100 –
RRB Holdings, Inc. (RRBH): Philippines Holding company 100 – 100 –
Red Ribbon Bakeshop, Inc. (RRBI) Philippines Food service – 100 – 100
Red Ribbon Bakeshop, Inc. USA (RRBI USA) USA Food service – 100 – 100
Mang Inasal Philippines Inc. (Mang Inasal) Philippines Food service 100 – 100 –
Grandworth Resources Corporation (Grandworth): Philippines Leasing 100 – 100 –
Adgraphix, Inc. (Adgraphix) Philippines Digital printing – 100 – 100
Iconnect Multi Media Network, Inc. (Iconnect) Philippines Dormant – 60 – 60
FCJB Foods, Inc. (b) Philippines Food service 60 – – –
Jollibee Worldwide Pte. Ltd. (JWPL): Singapore Holding company 100 – 100 –
Regional Operating Headquarters of JWPL (JWS) Philippines Financial
accounting,
human resources
and logistics
services – 100 – 100
Golden Plate Pte., Ltd. (GPPL): Singapore Holding company – 100 – 100
- Golden Beeworks Pte. Ltd. Singapore Food service – 60 – 60
- Golden Piatto Pte. Ltd. Singapore Holding company – 75 – 75
Cibo Felice S.R.L. Italy Food service – 100 – 100
- Bee World Spain, Sociedad Limitada Spain Food service – 100 – 100
- Hong Yun Hong (Shanghai) Food and Beverages
Management Company Ltd. PRC Food service – 60 – 60
- Meko Holdings Limited (a) Hong Kong Food service – 60 – –
Golden Cup Pte. Ltd. Singapore Holding company – 60 – 60
Beijing New Hongzhuang Yuan Food and Beverage
Management Co., Ltd. (Hong Zhuang Yuan) PRC Food service – 100 – 100
Southsea Binaries Ltd. (Southsea) British Virgin
Island
(BVI) Holding company – 100 – 100
Beijing Yong He King Food and Beverage Co., Ltd. PRC Food service – 100 – 100
Shenzhen Yong He King Food and
Beverage Co., Ltd. PRC Food service – 100 – 100
Hangzhou Yongtong Food and Beverage Co., Ltd. PRC Food service – 100 – 100
Hangzhou Yong He King Food and
Beverage Co., Ltd. PRC Food service – 100 – 100
Wuhan Yong He King Food and Beverage Co., Ltd. PRC Food service – 100 – 100
Tianjin Yong He King Food and Beverage Co., Ltd. PRC Food service – 100 – 100
Happy Bee Foods Processing Pte. Ltd. (HBFPPL) Singapore Holding company – 100 – 100
- Happy Bee Foods Processing (Anhui) Co. Ltd. PRC Food service – 100 – 100
JSF Investments Pte. Ltd. (JSF): Singapore Holding company – 100 – 100
- SF Vung Tau Joint Stock Company Vietnam Holding company – 60 – 60
- Highland Coffee Service Joint-stock Company Vietnam Food service – 100 – 100
- Quantum Corporation Vietnam Food service – 100 – 100
Pho Viet Joint Stock Company Vietnam Food service – 100 – 100
Pho 24 Service Trade Manufacture
Corporation Vietnam Food service – 100 – 100
- Blue Sky Holdings Limited Hong Kong Holding company – 60 – 60
- Sino Ocean Limited Hong Kong Food service – 100 – 100
- Blue Sky Holdings (Macau) Limited Macau Food service – 100 – 100
Jollibee (China) Food & Beverage Management PRC Management
Co.Ltd. company – 100 – 100
- Jollibee (Shanghai) Consulting Management Co., PRC Management
Ltd. (c) company – 100 – –
Jollibee International (BVI) Ltd. (JIBL): BVI Holding company – 100 – 100
- Jollibee Vietnam Corporation Ltd. Vietnam Food service – 100 – 100
- Goldstar Food Trade and Service Company
Limited (GSC) Vietnam Food service – 100 – 100
- PT Chowking Indonesia Indonesia Dormant – 100 – 100
- PT Jollibee Indonesia Indonesia Dormant – 100 – 100
- Jollibee (Hong Kong) Limited Hong Kong Dormant – 85 – 85
- Belmont Enterprises Ventures Limited (Belmont) BVI Holding company – 100 – 100
- Yong He Holdings Co., Ltd. BVI Holding company – 100 – 100
Centenary Ventures Ltd. BVI Holding company – 100 – 100
Bee World UK Limited (UK) UK Food service – 100 – 100
*SGVFS187611*
- 32 -
2023 2022
Country of Direct Indirect Direct Indirect
Incorporation Principal Activities Ownership Ownership Ownership Ownership
JWPL Management Co., Pte. Ltd.(g) Singapore Management
company – 100 – 100
- Branch of JWPL Management Co., Pte. Ltd.(e) Hong Kong Management
company – 100 – 100
Super Magnificent Coffee Company Pte. Ltd.
(SMCC-SG) Singapore Holding company – 80 – 80
- Super Magnificent Coffee Company Ireland
Limited (SMCC-IE) Ireland Holding company – 100 – 100
- Super Magnificent Coffee Company Hungary Kft.
(SMCC-HU) Hungary Holding company – 100 – 100
- International Coffee & Tea, LLC (ICTL) USA Food service – 100 – 100
6000 Jefferson BH, LLC(d) USA Holding company – 80 – 100
CBTL Ventures, LLC USA Food service – 100 – 100
CBTL Franchising, LLC Franchising
USA company – 100 – 100
- The Coffee Bean & Tea Leaf (Singapore) Pte., Ltd.
(CBTL-SG) Singapore Food service – 100 – 100
- The Coffee Bean & Tea Leaf (Malaysia)
Sdn. Bhd. Malaysia Food service – 100 – 100
- The Coffee Bean & Tea Leaf (Hongkong)
Limited Hong Kong Dormant – 100 – 100
- Magnificent Coffee Trading Pte. Ltd Singapore Food Service – 100 – 100
Milkshop International Inc. (Milksha) (i) Taiwan Food Service – 51 – –
Chanceux, Inc. Philippines Holding company 100 – 100 –
BKTitans Inc. (BKTitans) Philippines Holding company – 54 – 54
- PFN Holdings Corporation Philippines Holding company – 99 – 99
- PERF Restaurants, Inc. Philippines Food service – 100 – 100
PERF Trinoma, Inc. Philippines Food service – 100 – 100
PERF MOA Pasay Inc. Philippines Food service – 100 – 100
Jollibee Foods Corporation (USA) USA Holding company 100 – 100 –
Honeybee Foods Corporation (HFC) USA Food service – 100 – 100
- Tokyo Teriyaki Corporation (TTC) USA Food service – 100 – 100
- Honeybee Foods (Canada) Corporation (HFCC) Canada Food service – 100 – 100
Bee Good! Inc. (BGI) USA Holding company – 100 – 100
- SJBF LLC (SJBF) USA Food service – 100 – 100
Jolly USA Services LLC (f) USA Holding company – 100 – 100
- JBM LLC (f) USA Franchising – 100 – 100
Donut Magic Phils., Inc. (Donut Magic)(j) Philippines Dormant 100 – 100 –
Ice Cream Copenhagen Phils., Inc. (ICCP)(j) Philippines Dormant 100 – 100 –
Mary’s Foods Corporation (Mary’s)(j) Philippines Dormant 100 – 100 –
QSR Builders, Inc. Philippines Dormant 100 – 100 –
(a) On September 1, 2023, the Parent company, through its wholly owned subsidiary, GPPL, completed the acquisition of 60% ownership in Meko Holdings
Limited.
(b) On August 29, 2023, FCJB Foods, Inc. was incorporated in the Philippines which is 60% owned by the Parent Company.
(c) On August 21, 2023, Jollibee (Shanghai) Consulting Management Co., Ltd. was incorporated in PRC.
(d) Effective January 1, 2023, pursuant to a recapitalization, ICTL is now an 80% holder of 6000 Jefferson BH LLC.
(e) On July 19, 2022, Branch of JWPL Management Co., Pte. Ltd. Was incorporated in Hong Kong.
(f) On June 21, 2022, Jolly USA Services LLC and JBM LLC were incorporated in the State of Delaware.
(g) On June 7, 2022, the Jollibee Group, through its wholly owned subsidiary, JWPL, incorporated JWPL Management Co., Pte. Ltd. in Singapore.
(h) On June 6, 2022, Pinnacle Quality Food Inc. was incorporated in the Philippines.
(i) On February 22, 2022, the Parent company, through its wholly owned subsidiary, JWPL, completed the acquisition of 51% ownership in Milkshop
International Inc.
(j) On June 18, 2004, the stockholders of the Jollibee Group approved the Plan of Merger of the three (3) dormant companies. The application is pending
approval from the SEC as at December 31, 2023.
*SGVFS187611*
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11. Property, Plant and Equipment
The rollforward analysis of this account follows:
Buildings,
Commercial Office, Store
Condominium and Food
Units and Leasehold Processing Furniture Transportation Construction
Improvements Improvements Equipment and Fixtures Equipment in Progress Total
Cost
Balance at beginning of year P
= 478,009,609 P
= 4,204,163,641 P
= 5,159,508,841 P
= 477,198,084 P
= 539,659,758 P
= 4,161,823,954 P
= 15,020,363,887
Additions – 206,345,806 498,390,290 36,226,365 62,972,934 745,875,591 1,549,810,986
Retirements and disposals – (335,724,180) (282,339,543) (13,534,206) (155,699,979) (232,001,761) (1,019,299,669)
Reclassifications (see Notes 12 and 13) 165,140,647 257,378,560 433,161,969 14,509,798 13,384,821 (1,048,943,193) (165,367,398)
Balance at end of year 643,150,256 4,332,163,827 5,808,721,557 514,400,041 460,317,534 3,626,754,591 15,385,507,806
Accumulated Depreciation and Amortization
Balance at beginning of year 452,712,966 3,009,475,779 4,255,194,996 431,049,749 453,259,212 – 8,601,692,702
Additions (see Notes 22 and 23) 15,351,437 298,120,826 441,170,483 23,815,643 35,228,040 – 813,686,429
Retirements and disposals – (309,205,827) (270,913,487) (13,349,801) (149,142,172) – (742,611,287)
Balance at end of year 468,064,403 2,998,390,778 4,425,451,992 441,515,591 339,345,080 – 8,672,767,844
Accumulated Impairment Losses
Balance at beginning and end of year – 29,539,860 21,210,598 382,824 – – 51,133,282
Net Book Value P
= 175,085,853 P
= 1,304,233,189 P
= 1,362,058,967 P
= 72,501,626 P
= 120,972,454 P
= 3,626,754,591 P
= 6,661,606,680
*SGVFS187611*
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2022
Buildings,
Commercial Office, Store
Condominium and Food
Units and Leasehold Processing Furniture Transportation Construction
Land Improvements Improvements Equipment and Fixtures Equipment in Progress Total
Cost
Balance at beginning of year =18,586,733
P =478,009,609
P =4,114,002,619
P =4,870,000,275
P =462,792,096
P =501,303,985
P =1,478,304,089
P P
=11,922,999,406
Additions – – 85,398,109 313,022,002 23,437,674 49,484,464 623,556,082 1,094,898,331
Retirements and disposals – – (115,941,530) (199,460,973) (16,220,742) (11,128,691) (37,795,181) (380,547,117)
Reclassification from asset held for sale to
condominium units (see Note 14) – – – – – – 2,401,600,000 2,401,600,000
Exchange of land asset to investment in an
associate (see Note 10) (18,586,733) – – – – – – (18,586,733)
Reclassifications (see Note 14) – – 120,704,443 175,947,537 7,189,056 – (303,841,036) –
Balance at end of year – 478,009,609 4,204,163,641 5,159,508,841 477,198,084 539,659,758 4,161,823,954 15,020,363,887
Accumulated Depreciation and Amortization
Balance at beginning of year – 445,694,569 2,820,063,627 4,092,427,828 427,437,127 431,365,775 – 8,216,988,926
Additions (see Notes 22 and 23) – 7,018,397 277,199,600 345,960,072 19,415,153 32,771,949 – 682,365,171
Retirements and disposals – – (87,787,448) (183,192,904) (15,802,531) (10,878,512) – (297,661,395)
Balance at end of year – 452,712,966 3,009,475,779 4,255,194,996 431,049,749 453,259,212 – 8,601,692,702
Accumulated Impairment Losses
Balance at beginning of year – – 39,541,256 28,202,007 560,967 – – 68,304,230
Reversal (see Note 23) – – (10,001,396) (6,991,409) (178,143) – – (17,170,948)
Balance at end of year – – 29,539,860 21,210,598 382,824 – – 51,133,282
Net Book Value P
= P
=25,296,643 =1,165,148,002
P =883,103,247
P =45,765,511
P =86,400,546
P =4,161,823,954
P =6,367,537,903
P
*SGVFS187611*
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The construction in progress account as at December 31, 2023 and 2022 mainly pertains to costs incurred for the building of new stores and renovation of old stores. The
outstanding projects as at December 31, 2023 are expected to be completed within the next financial year. Reclassifications from construction in progress account to the
property, plant and equipment accounts mainly arise from the completion of the construction of new stores. As at December 31, 2023 and 2022, no borrowing costs have
been capitalized.
Loss on retirement of property, plant and equipment amounted to =
P232.4 million and =P22.6 million in 2023 and 2022, respectively (see Notes 22 and 23). The Company
disposed property, plant and equipment with carrying amount of =
P44.3 million and =
P62.5 million for a total consideration of =
P95.6 million and =
P115.5 million in 2023
and 2022, respectively. Gain on sale amounting to =
P51.3 million and =
P53.0 million in 2023 and 2022, respectively, were recognized on the disposals of property, plant
and equipment (see Note 25).
No provision for impairment loss on property, plant and equipment was recognized in 2023 and 2022. Management reassessed the recoverable amount of the Company’s
property, plant and equipment, and recognized reversal of provision amounting to nil million and =
P17.2 million in 2023 and 2022, respectively (see Note 23).
In 2023 and 2022, no items of property, plant and equipment have been pledged as security or collateral for any of the Company’s liabilities.
*SGVFS187611*
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2023 2022
Cost
Balance at beginning of year P
=771,076,652 =800,233,055
P
Reclassification (see Note 11) 63,782,159 −
Retirements − (29,156,403)
Balance at end of year 834,858,811 771,076,652
Accumulated Amortization
Balance at beginning of year 614,763,982 561,342,471
Amortization (see Note 23) 85,313,330 77,232,573
Retirements − (23,811,062)
Balance at end of year 700,077,312 614,763,982
Net Book Value P
=134,781,499 =156,312,670
P
Intangible assets mainly pertain to computer software relating to the Company’s Enterprise Resource
Planning (ERP) application which the Company started using on August 1, 2014. The useful life of
the computer software is ten (10) years.
In 2023 and 2022, the Company recognized loss on retirement of computer software amounting to
nil and =
P5.3 million, respectively (see Note 23).
The Company’s intangible assets also include trademarks and patents amortized over its useful life of
five (5) years with net book value of =
P5.2 million and =
P7.4 million as at December 31, 2023 and
2022, respectively.
2023
Buildings and
Building
Improvements
Cost
Balance at beginning of year P972,321,623
=
Reclassification (see Note 11) 101,585,239
Balance at beginning of year 1,073,906,862
Accumulated Depreciation
Balance at beginning of year 462,193,642
Additions (see Notes 22 and 23) 37,765,106
Balance at end of year 499,958,748
Net Book Value =
P573,948,114
*SGVFS187611*
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2022
Buildings and
Building
Land Improvements Total
Cost
Balance at beginning and end of year =
P200,634,904 =
P985,738,865 = P1,186,373,769
Retirements and disposals (1,431,331) (13,417,242) (14,848,573)
Reclassifications (see Note 14) (199,203,573) ‒ (199,203,573)
Balance at beginning of year − 972,321,623 972,321,623
Accumulated Depreciation
Balance at beginning of year − 443,940,894 443,940,894
Retirements and disposals − (13,417,242) (13,417,242)
Additions (see Notes 22 and 23) − 31,669,990 31,669,990
Balance at end of year − 462,193,642 462,193,642
Net Book Value =
P− =
P510,127,981 =
P510,127,981
Rent income derived from income-generating properties amounted to = P189.0 million and
=
P250.2 million in 2023 and 2022, respectively (see Note 30). Direct operating costs relating to the
investment properties, which include depreciation and maintenance expenses, amounted to
=37.8million and P
P =31.7 million in 2023 and 2022, respectively.
The Company’s investment properties have an aggregate fair value of = P153.24 million and
P
=2,018.4 million as at December 31, 2023 and 2022, respectively, as determined by an independent
appraiser who holds a recognized and relevant professional qualification. The fair value represents
the amount at which the assets and liabilities can be exchanged in an orderly transaction between
market participants to sell the asset or transfer the liability at the measurement date under current
market conditions in accordance with International Valuation Standards. In determining the fair
value of the investment properties, the independent appraisers used the market data approach for land
and cost approach for buildings and building improvements. For land, fair value is based on sales and
listings of comparable properties within the vicinity after adjustments for differences in location, size
and shape of the lot, time elements and other factors between the properties and their comparable
properties. For buildings and building improvements, fair value is based on the current cost to
replace the properties in accordance with prevailing market prices for materials, labor, contractors’
overhead, profit and fees in the locality after adjustments for depreciation due to physical
deterioration, and functional and economic obsolescence based on personal inspection of the
buildings and building improvements and in comparison, to similar new properties.
While the fair value of the investment properties was not determined as at December 31, 2023 and
2022, the Company’s management believes that there were no conditions present in 2023 and 2022
that would significantly reduce the fair value of the investment properties from that determined in the
most recent valuation.
No investment properties have been pledged as security or collateral as at December 31, 2023 and
2022.
*SGVFS187611*
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2022
Balance at beginning of year =434,092,829
P
Reclassification to property, plant and equipment and investment
properties (see Notes 11 and 13) (400,905,268)
Disposals (33,187,561)
Balance at end of year =−
P
In 2015, the Company entered into an agreement to develop a commercial and office condominium
building (the “Project”) in a parcel of its land in consideration for cash and assigned units in the
Project. The completion of the transaction is conditional upon fifty percent (50%) completion of the
Project, as certified by the general contractor of the Project, and when all of the assigned units are
fully constructed and accepted in accordance with the specifications contained in the Agreed Design.
As at December 31, 2021, the assigned units have not been accepted by and conveyed to the
Company.
On April 29, 2022, upon execution of the Amendment to the Deed of Conditional Conveyance and
Deed of Conveyance, the JFC Group completed the exchange of its land asset with a fair value of
P
=2,401.6 million for condominium units in the Project (see Note 11). Net gain arising from the
exchange of land assets for condominium units in the Project amounted to P
=2,000.7 million
(see Note 25).
In 2021, the Company engaged property agents to market all its land assets, including improvements
attached thereto, except for certain parcels of land assets to be exchanged for shares of common stock
of CentralHub (see Note 10) and units in the Project (see Note 13) which related transactions are
expected to be completed in 2022. The lower of the carrying amount and fair value less costs to sell
of all its land assets were reclassified as held for sale as at December 31, 2021.
*SGVFS187611*
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16. Trade Payables and Other Current Liabilities and Contract Liabilities
This account consists of:
2023 2022
Trade payables:
Related parties (see Note 29) P
=2,863,402,382 =6,194,736,758
P
Suppliers 1,906,983,910 1,919,971,953
Accruals for:
Salaries, wages and employee benefits 1,306,251,593 1,160,293,861
Advertising and promotions 596,783,260 389,222,794
Rent 207,832,328 233,617,843
Delivery expenses 136,157,939 131,049,809
Repairs, maintenance and security 117,158,424 127,759,843
Electricity, other utilities and communication 55,039,692 60,558,837
Interest (see Notes 18 and 35) 53,173,723 54,739,248
Professional fees 49,521,752 30,471,687
Retention 47,707,032 21,470,958
Corporate events and research 32,665,398 35,251,086
Supplies 26,628,365 21,052,223
Insurance 2,000,000 2,000,000
Transportation and travel 811,708 812,574
Store operations − 2,205,518
Others 287,767,638 286,871,592
Local and other taxes payable 945,569,456 824,824,942
Customers’ deposits 572,469,925 891,958,456
Happy plus liabilities 557,999,080 567,712,535
Unearned revenues from gift certificates 230,623,045 97,811,914
Dividends payable (see Note 35) 221,217,793 446,426,824
Other current liabilities 128,910,990 182,519,720
10,346,675,433 13,683,340,975
Contract liabilities - current (see Note 21) 464,105,828 252,071,491
P
=10,810,781,261 =
P13,935,412,466
*SGVFS187611*
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Trade payables are noninterest-bearing and are generally settled within a 30-day term.
The terms and conditions of payables to related parties are discussed in Note 29.
Accruals, local and other taxes payable and dividends payable are noninterest-bearing and are
normally settled within the next financial year.
Other accruals generally consist of amounts payable for representation and various activities of
the Company.
Happy plus liabilities pertain to the Company’s liabilities for customer card loads and points and
are generally applied to customer purchases or reimbursed to franchisees, depending on the actual
usage, within the next financial year.
Customers’ deposits pertain to POS deposits and security deposits from leases with franchisees
and subsidiaries, which are refundable at the end of the lease term and deposits for kiddie party
packages. Accretion of interest pertaining to customers’ deposits from operating leases amounted
to =
P0.03 in 2023 and 2022 (see Note 24).
Unearned revenues from gift certificates pertain to the Company’s redeemable gift certificates
which are recognized as revenue upon redemption.
Other current liabilities consist mainly of payable for mascots, subscription in newspapers, staled
checks and payable to contractors.
17. Provisions
2023 2022
Balance at beginning of year P
=1,070,545,302 =858,892,176
P
Reversals (see Note 25) (21,192,934) –
Additions during the year (see Note 23) – 211,653,126
Balance at end of year 1,049,352,368 1,070,545,302
Current portion 580,217,500 351,486,000
Noncurrent portion P
=469,134,868 =719,059,302
P
The Company’s outstanding provisions consist mainly of provisions for asserted claims which are
normal to the Company’s business. These include estimates of legal services, settlement amounts and
other costs of claims made against the Company. Other information on the claims are not disclosed
as this may prejudice the Company’s position on such claims (see Note 30).
*SGVFS187611*
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P
=4,000.0 Million BPI Loan
On October 6, 2021, the Company availed a 5-year unsecured loan acquired from a local bank
amounting to = P4,000.0 million split into two (2) tranches. The first tranche is subject to a floating
rate based on PHP BVAL Reference Rate for three (3) months tenor plus spread of 0.75% or to an
interest rate floor equal to the BSP Reverse Repurchase Rate. The second tranche is subject to a fixed
rate of 3.9765% per annum. The Parent Company incurred debt issue cost of = P30.0 million,
representing documentary stamp tax, in relation to this loan. The principal is payable in equal
quarterly installments commencing on the 6th quarter from the drawdown date and every quarter
thereafter until maturity. The carrying amount of the loan is =P2,983.0 million, net of unamortized
debt issue cost of =P17.0 million, as at December 31, 2023 and = P3,977.0 million, net of unamortized
debt issue cost of =P23.0 million, as at December 31, 2022.
The future expected principal settlements of the long-term debt as at December 31 follow:
2023 2022
2023 P
=– =2,980,000,000
P
2024 2,980,000,000 2,980,000,000
2025 1,915,000,000 1,915,000,000
2026 1,000,000,000 1,000,000,000
P
=5,895,000,000 =8,875,000,000
P
*SGVFS187611*
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2023 2022
Balance at beginning of year P
=48,607,315 P70,314,529
=
Amortization (16,607,214) (21,707,214)
Balance at end of year P
=32,000,101 =48,607,315
P
Accrued interest expense included in “Trade payables and other current liabilities” account amounted
to =
P53.2 million and =
P54.7 million as at December 31, 2023 and 2022, respectively (see Note 16).
Debt Covenants
The Company is subject to certain debt covenants which include, among others, maintaining a Debt-
to-Equity ratio, Debt-to-EBITDA ratio and Debt-to-Service Coverage Ratio. The Company is in
compliance with the applicable debt covenants as at December 31, 2023 and 2022.
19. Equity
a. Preferred Stock
On September 24, 2021, the Philippine SEC approved the shelf registration in the Philippines of
20,000,000 cumulative, non-voting, non-participating, non-convertible, redeemable, peso-
denominated perpetual preferred shares to be offered within a period of three (3) years from the
date of effectivity of the registration statement and granted the Parent Company the permit to sell
8,000,000 preferred shares and an over subscription option of up to 4,000,000 preferred shares, at
an offer price of P
=1,000 per share in two (2) series: Preferred Shares-Series A and Series B with a
dividend rate of 3.2821% and 4.2405% per annum, respectively.
On October 14, 2021, the Parent Company issued Preferred Shares-Series A and Series B totaling
to 3,000,000 shares and 9,000,000 shares, respectively. The preferred shares were listed in the
Philippine Stock Exchange on the same day.
The total number of shareholders of the Parent Company for Preferred Shares-Series A and
Series B is 3 and 7, respectively, as at December 31, 2023 and 2022.
b. Common Stock
*SGVFS187611*
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Upon ratification of the January 26, 2005 resolution by the BOD on March 22, 2022, the Parent
Company cancelled the subscriptions receivable totally to = P17.2 million, which P
=2.0 million pertains
to common stock and P =15.2 million to additional paid-in capital in 2022.
The Company’s common stock held in treasury consists of 16,447,340 shares costing
P
=180.5 million as at December 31, 2023 and 2022.
As required by Revised SRC Rule 68, below is the summary of the Company’s track record of
registration of securities.
Number Number of Holders of Securities
of Shares Issue/Offer as at December 31
Registered Price Listing date 2023 2022
Common shares 75,000,000 =
P9 June 14, 1993 2,922 2,940
Preferred shares - A 3,000,000 =
P1,000 October 14, 2021 3 3
Preferred shares - B 9,000,000 =
P1,000 October 14, 2021 7 7
*SGVFS187611*
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2022
Common Shares
April 19 May 5 May 19 =
P1.07 =
P1,185,020,521
November 8 November 23 December 14 1.23 1,371,074,167
=
P2.30 =
P2,556,094,688
Preferred Shares-Series A
March 14 March 29 April 18 =
P8.21 =
P24,615,750
April 19 June 22 July 14 8.21 24,615,750
April 19 September 21 October 14 8.21 24,615,750
November 8 December 20 January 13, 2023 8.21 24,615,750
=
P32.84 =
P98,463,000
Preferred Shares-Series B
March 14 March 29 April 18 =
P10.60 =
P95,411,250
April 19 June 22 July 14 10.60 95,411,250
April 19 September 21 October 14 10.60 95,411,250
November 8 December 20 January 13, 2023 10.60 95,411,250
=
P42.40 =
P381,645,000
The Company has a cash dividend policy of declaring one-third of its net income for the year as cash
dividends payable to all common stockholders. It uses its best estimate of its net income as basis for
declaring such cash dividends. Actual cash dividends per share declared as a percentage of the
consolidated basic earnings per share of the JFC Group are 30.9% and 35.9% in 2023 and 2022,
respectively.
Preferred Shares-Series A and Series B shareholders, subject to the discretion of the BOD to the
extent permitted by law, are entitled to dividends. If cash dividends are declared, cash dividends shall
be as follows:
Preferred Shares-Series A shall be at the fixed rate of 3.2821% per annum; and,
Preferred Shares-Series B shall be at the fixed rate of 4.2405% per annum.
An important part of the Company’s growth strategy is the acquisition of new businesses in the
Philippines and abroad. Examples were acquisitions of 85% of Yonghe King in 2004 in PRC
(P
=1,200.0 million), 100% of Red Ribbon in 2005 (P =1,700.0 million), the remaining 20% minority
share in Greenwich in 2006 (P =384.0 million), the remaining 15% share of Yonghe King in 2007
(P
=413.7 million), 100% of Hong Zhuang Yuan restaurant chain in PRC in 2008 (P =2,600.0 million),
70% of Mang Inasal in 2010 (P =2,976.2 million), 100% of Chowking US operations in 2011
(P
=693.3 million), 40% of SJBF LLC, the parent company of the entities comprising the Smashburger
in USA in 2015 (P =4,812.8 million, including transaction costs), the remaining 30% minority share
each in Mang Inasal (P=2,000.0 million) and HBFPPL (P =514.9 million) in 2016, 100% of GSC in 2016
(P
=8.6 million), acquisition of additional 10% of SuperFoods Group in 2017 (P =2,712.7 million), the
remaining 60% of SJBF LLC in 2018 (P =5,735.8 million), 80% of The Coffee Bean & Tea Leaf
(P
=17,098.7 million) in 2019 and the remaining 30% minority share in Smashburger Long Island
(P
=95.8 million) in 2020 and acquisition of the 51% of Milksha (P =654.5 million) in 2022 and 60% of
Meko (P =910.1 million) in 2023.
*SGVFS187611*
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The Company plans to continue to make substantial acquisitions in the coming years. The Company
uses its cash generated from operations and from debt financing to finance these acquisitions and
capital expenditures. These limit the amount of cash dividends that the Company can declare and pay
resulting to a level of retained earnings higher than the paid-in capital stock.
The unappropriated retained earnings of the Company is also restricted for the payment of dividends
to the extent of the cost of common stock held in treasury amounting to =
P180.5 million as at
December 31, 2023 and 2022. The Company’s retained earnings available for dividend declaration,
determined based on the guidelines provided by the SEC, is presented in the consolidated financial
statements filed with the SEC.
On December 7, 2021, the BOD approved the release of previously approved appropriated retained
earnings in 2018 amounting to =P20,000.0 million. On the same day, the BOD approved the
appropriation of =
P18,700.0 million from the Parent Company’s unappropriated retained earnings for
capital expenditures in 2022. Consequently, appropriated retained earnings for capital expenditures
amounted to =P18,700.0 million as at December 31, 2023 and 2022.
21. Revenues
Set out below is the disaggregation of the Company’s revenue from contracts with customers for the
year ended December 31:
2023
Revenue Source Food Service Franchising Total
Sale of goods P
=30,744,304,272 P
=– P
=30,744,304,272
Royalty and set-up fees – 9,443,752,048 9,443,752,048
Service revenue and others 4,325,628,970 – 4,325,628,970
35,069,933,242 9,443,752,048 44,513,685,290
PFRS 15 impact on system-wide advertising fees – 2,928,847,348 2,928,847,348
Total revenue from contracts with customers P
=35,069,933,242 P
=12,372,599,396 P
=47,442,532,638
Timing of recognition:
Goods transferred at a point in time P
=47,394,737,638
Services transferred over time 47,795,000
P
=47,442,532,638
2022
Revenue Source Food Service Franchising Total
Sale of goods P
=26,346,745,425 P
=– P
=26,346,745,425
Royalty and set-up fees – 7,953,218,941 7,953,218,941
Service revenue and others 4,704,595,221 – 4,704,595,221
31,051,340,646 7,953,218,941 39,004,559,587
PFRS 15 impact on system-wide advertising fees – 2,460,068,174 2,460,068,174
Total revenue from contracts with customers P
=31,051,340,646 P
=10,413,287,115 P
=41,464,627,761
Revenue Source
Timing of recognition:
Goods transferred at a point in time P
=41,432,127,761
Services transferred over time 32,500,000
P
=41,464,627,761
*SGVFS187611*
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Net Sales. Net sales pertain to sale of inventories less sales discounts for the years ended
December 31, 2023 and 2022.
Royalty and Set-up Fees. The Company has existing Royalty and Service Agreements with certain
subsidiaries and independent franchisees for the latter to operate QSR outlets under the “Jollibee”
concept and trade name. In consideration thereof, the franchisees agree to pay set-up fees and
monthly royalty fees equivalent to a certain percentage of the subsidiaries and independent
franchisees’ net sales.
Contract Liabilities. The Company receives fees from independent franchisees pertaining to their
share in the local store marketing charges which will be incurred in the subsequent year. The
Company also receives set-up fees from independent franchisees to operate QSR outlets under the
“Jollibee” concept and trade name and is recognized as revenue over the period of the franchise.
2023 2022
Cost of Sales
Cost of inventories (see Note 29) P
=13,350,729,371 =
P11,392,886,530
Contracted services 2,255,863,880 1,822,230,653
Personnel expenses:
Salaries, wages and employee benefits 1,661,970,697 1,359,914,157
Pension expense (see Note 27) 71,868,619 43,872,825
Depreciation and amortization for:
Right-of-use assets (see Note 30) 850,225,922 900,944,459
Property, plant and equipment and investment
properties (see Notes 11 and 13) 642,597,468 574,806,785
Electricity and other utilities 1,152,124,686 1,019,126,325
Freight 822,329,728 956,192,992
Supplies 731,814,269 643,537,314
Rent (see Notes 29 and 30) 490,562,770 197,479,564
Security and janitorial 315,897,357 258,237,626
Repairs and maintenance 239,938,942 283,416,730
Service fees (see Note 29) 71,720,725 56,845,289
Transportation and travel 61,359,472 52,027,824
Taxes and licenses 48,915,757 57,159,698
Communication 26,236,814 22,683,288
Representation and entertainment 18,237,188 14,048,468
Loss on retirement of property, plant and equipment
and intangible assets (see Notes 11 and 12) 5,623,050 22,586,134
Professional fees 302,275 498,639
Others 1,167,524,948 1,017,752,982
23,985,843,938 20,696,248,282
(Forward)
*SGVFS187611*
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2023 2022
Cost of Services
Advertising expense (Note 29) P
=2,485,503,553 P=2,219,061,282
Cost of labor and materials 940,180,157 743,279,922
Depreciation and amortization (see Notes 11 and 13) 37,550,738 15,083,430
Rent (see Note 30) 12,992,267 37,550,738
Taxes and licenses 7,196,239 10,701,146
Service fees (see Note 29) ‒ 50,365,214
Others 1,557,589 36,920
3,484,980,543 3,076,078,652
P
=27,470,824,481 =
P23,772,326,934
Others consist of delivery costs, supplies and Company’s share in common usage area and insurance.
(Forward)
*SGVFS187611*
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2023 2022
Subscriptions =
P37,612,866 =37,612,866
P
Trainings and seminars 35,881,983 34,208,114
Association dues 33,538,577 33,901,956
Supplies 24,335,978 20,266,988
Representation and entertainment 27,438,780 19,677,803
Contracted services 2,541,652 18,824,885
Security and janitorial 1,735,694 1,141,260
Delivery charges 1,069,136 ‒
Provisions (Note 17) – 211,653,126
Others 640,038,491 720,060,998
P
=9,078,215,583 =8,051,131,067
P
Others consist of building charges, amortization of debt issue costs, disallowed input vat on exempt
sales and licenses.
(Forward)
*SGVFS187611*
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2023 2022
Foreign exchange loss – net (see Note 31) (P
=41,868,345) (P
=501,836,568)
Reversal of provisions (see Note 17) 21,192,934 ‒
Pre-termination of lease (see Note 30) 14,502,147 20,004,969
Insurance claims 8,758,862 291,769,195
Marked-to-market gain on financial assets at FVTPL
(see Note 9) 4,880,000 8,770,000
Gain on land conveyance (see Notes 11, 13 and 14) ‒ 2,141,202,763
Gain from exchange of land assets to investment in
an associate (see Notes 10 and 11) ‒ 1,306,577,694
Gain from sublease arrangement (see Note 30) ‒ 476,010,335
Gain from disposal of club share (see Note 9) ‒ 3,500,000
Guarantee fee income (see Note 29) ‒ 8,995
Others 133,125,626 74,571,470
P
=656,968,696 =4,079,332,415
P
In the normal course of business, the Company accrues liabilities based on management’s best
estimate of costs incurred, particularly in cases when the Company has not yet received final billings
from suppliers and vendors. There are also ongoing negotiations and reconciliations with suppliers
and vendors on certain liabilities recorded. These balances are continuously reviewed by
management and are adjusted based on these reviews, resulting to write-off of certain liabilities as
other income.
Others consist mainly of income from salary charges to franchisees and others, including other
incidental income recognized by the Company.
2023 2022
Final taxes on:
Royalty fees P
=1,754,303,562 =1,475,700,971
P
Interest income 46,401,228 16,062,227
RCIT 519,815,314 469,407,116
P
=2,320,520,104 =1,961,170,314
P
The details of the Company’s deferred tax assets and liabilities are as follows:
2023 2022
Deferred tax assets:
Lease liabilities P
=1,524,482,830 =1,570,047,740
P
Pension liability 346,267,347 290,535,382
Unrealized foreign exchange loss 322,619,103 290,793,468
Provision for bonus 237,967,663 198,371,206
Provisions 208,754,993 146,114,443
Allowance for impairment losses on:
Receivables 69,225,020 65,576,015
Inventories 15,634,225 25,498,252
(Forward)
*SGVFS187611*
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2023 2022
Property, plant, equipment and other assets P
=12,783,320 =12,983,419
P
Contract liability 84,973,750 66,922,500
Cost of stock options 70,957,014 47,811,410
Unamortized past service cost 2,856,259 677,959
Unaccreted discount on:
Refundable deposits 983,875 983,875
Employee car plan receivables – 4,374,395
2,897,505,399 2,720,690,064
Deferred tax liabilities:
Right-of-use assets 1,069,128,105 1,131,938,143
Unrealized foreign exchange gain 294,436,918 144,659,081
Operating lease receivables 215,455,136 198,787,729
Gain on Asset Swap 189,760,057 189,760,057
Prepaid rent 11,291,628 14,024,996
Net unrealized gain on financial assets
at FVTPL 2,748,000 2,748,000
Deferred compensation expense 2,538,078 1,438,894
1,785,357,922 1,683,356,900
P
=1,112,147,477 =1,037,333,164
P
The reconciliation between provision for income tax computed using income before income tax at the
statutory tax rate of 25% in 2023 and 2022, with the provision for income tax as shown in the parent
company statement of comprehensive income are as follows:
2023 2022
Provision for income tax at statutory tax rate P
=2,814,881,570 =3,303,746,934
P
Tax effects of:
Effect of different tax rates for royalty fees
and interest income (451,732,978) (373,359,257)
Dividend income (62,500,000) –
Tax effect of MSOP and ELTIP 45,431,531 72,359,573
Nondeductible expenses (45,292,863) (29,096,864)
Intrinsic value of stock options exercised (9,951,298) (91,248,100)
Other Provisions (1,220,000) –
Utilized MCIT and NOLCO ‒ (766,962,951)
Effect of different tax rates for capital gains ‒ 214,693,568
P
=2,289,615,962 P=2,330,132,903
The Company has a funded, independently administered, non-contributory defined benefit retirement
plan covering all regular and permanent employees with benefits based on years of service and latest
compensation. The plan provides for a lump sum benefit payment upon retirement.
The funds are administered by a trustee bank. Subject to the specific instructions provided by the
Company in writing, the Company directs the trustee bank to hold, invest and reinvest the funds, and
keep the same invested, in its sole discretion, without distinction between principal and income, but
not limited to, certain government securities and bonds, quoted equity securities, and short-term fixed
income securities.
*SGVFS187611*
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The existing regulatory framework, Republic Act No. 7641, Retirement Pay Law, requires a
provision for retirement pay to qualified private sector employees in the absence of any retirement
plan in the entity, provided however that the employee’s retirement benefits under any collective
bargaining and other agreements shall not be less than those provided under the law. The law does
not require minimum funding of the plan.
The following tables summarize the components of “Pension expense”, included under “Cost of sales
and services” and “General and administrative expenses” accounts in the parent company statements
of comprehensive income and “Pension liability” account in the parent company statements of
financial position, which are based on the latest actuarial valuation.
*SGVFS187611*
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The following table sets forth the fair values, which are equal to the carrying values, of the plan assets
recognized as at December 31:
2023 2022
Cash in banks P
=61,118,084 =27,917,574
P
Unitized Investment Trust Fund-FVTPL 86,509,324 4,059,027
Investment in debt securities 324,164,363 314,498,290
Investments in Philippine government securities:
Fixed-rate treasury notes 1,024,649,853 639,625,937
Retail treasury bonds 134,524,071 207,705,106
Interest Receivable 18,239,934 ‒
Investments in quoted equity securities:
Holding firms 147,980,458 166,581,011
Banks 104,478,010 96,507,290
(Forward)
*SGVFS187611*
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2023 2022
Property P
=96,904,573 =97,081,358
P
Food and beverage 38,441,082 49,197,481
Transportation services 38,258,936 30,894,000
Electricity, energy, power and water 29,452,002 35,891,581
Telecommunication and IT 24,118,665 34,697,135
Retail 4,329,619 10,267,186
Others 4,684,234 5,768,670
Interest and dividends receivable 1,025,522 15,913,572
Fund liabilities (see Note 29) (760,115,196) (422,268,033)
P
=1,378,763,534 P=1,314,337,185
Investments in debt securities consist of long-term corporate bonds in the property sector, which
bear interest ranging from 2.75% to 6.30% maturing from April 2022 to November 2028;
Investments in government securities which consist of retail treasury bonds that bear interest from
2.375% to 6.25% and have maturities from December 2022 to June 2027 and fixed-rate treasury
notes that bear interest ranging from 2.375% to 8.5% and have maturities from January 2022 to
November 2032;
Other financial assets held by the retirement plan are primarily accrued interest income on cash
and cash equivalents, debt instruments and other securities.
Fund liabilities pertain to the advances made by the Company for payments made to retired
employees and accruals for trust fees.
The principal assumptions used to determine pension liability as at December 31 are as follows:
2023 2022
Discount rate 6.10% 7.10%
Salary increase rate 5.70% 6.00%
The sensitivity analysis below has been determined based on reasonably possible changes of each
significant assumption on the present value of the defined benefit obligation as at the end of the
reporting period, assuming all other assumptions were held constant:
Increase
(Decrease)
in Basis Points 2023 2022
Discount rate 50 (P
=88,980,374) (P
=78,553,541)
(50) 95,405,794 84,033,863
Salary increase rate 50 95,312,743 84,523,779
(50) (89,715,569) (79,705,174)
*SGVFS187611*
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The Company does not have a formal asset-liability matching strategy. The overall investment policy
and strategy of the retirement plan is based on the Company suitability assessment, as provided by its
trustee bank, in compliance with the Bangko Sentral ng Pilipinas requirements. It does, however,
ensure that there will be sufficient assets to pay the retirement benefits as they fall due while
attempting to mitigate the various risks of the plan.
The average duration of the defined benefit obligation is 10 years as at December 31, 2023 and 2022.
Shown below is the maturity analysis of the undiscounted benefit payments as at December 31:
2023 2022
Less than 1 year P
=980,210,283 =831,735,679
P
More than 1 year to 5 years 890,325,124 903,817,584
More than 5 years to 10 years 1,337,194,083 1,339,926,179
More than 10 years to 15 years 1,506,839,521 1,461,870,537
More than 15 years to 20 years 1,696,128,895 1,840,805,534
More than 20 years 3,193,084,771 3,094,924,874
On December 23, 2022, the Philippine SEC approved the registration of up to 136,000,000 common
shares with a par value of =
P1.0 per share to be issued at =
P167.20 to =
P216.80 per share to eligible
participants of the Company pursuant to the plan.
The Plan is divided into two programs, namely, the Management Stock Options Program (MSOP)
and the Executive Long-term Incentive Program (ELTIP). The MSOP provides a yearly stock option
grant program based on company and individual performance while the ELTIP provides stock
ownership as an incentive to reinforce entrepreneurial and long-term ownership behavior of executive
participants.
MSOP. The MSOP is a yearly stock option grant program open to members of the senior
management committee of the Company and members of the management committee, key talents and
designated consultants of some of the business units.
Each MSOP cycle refers to the period commencing on the MSOP grant date and ending on the last
day of the MSOP exercise period. Vesting is conditional on the employment of the employee-
participants in the Company within the vesting period. The options will vest at the rate of one-third
of the total options granted on each anniversary of the MSOP grant date until the third anniversary.
The exercise price of the stock options is determined by the Company with reference to the prevailing
market prices over the three months immediately preceding the date of grant for the 1st to the 7th
MSOP cycle. Starting with the 8th MSOP cycle, the exercise price of the options is determined by
the Company with reference to the closing market price as at date of grant.
*SGVFS187611*
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The options will vest at the rate of one-third of the total options granted from the start of the grant ate
on each anniversary date which will start after a year from the grant date. For instance, under the 1st
MSOP cycle, the Compensation Committee of the Company granted 2,385,000 options to eligible
participants on July 1, 2004. One-third of the options granted, or 795,000 options, vested and may be
exercised starting July 1, 2005. The exercise period for the 1st MSOP cycle was until June 30, 2012.
From July 1, 2005 to October 25, 2023, the Compensation Committee granted series of MSOP grants
under the 2nd to 20th MSOP cycle to eligible participants. Under the most recent grant on
October 25, 2023, the 20th MSOP cycle, the Compensation Committee granted 5,548,602 options.
These options vest similar to the 1st MSOP cycle.
The options under MSOP expire eight (8) years after grant date. The 1st, 2nd, 3rd, 4th, 5th, 6th,7th,
8th, 9th, 10th, 11th and 12th MSOP cycles expired in 2012, 2013, 2014, 2015, 2016, 2017, 2018,
2019, 2020, 2021, 2022, and 2023, respectively.
The movements in the number of stock options outstanding under MSOP and related weighted
average exercise prices (WAEP) for the years ended December 31, 2023 and 2022 follow:
2023 2022
Number Number
of Options WAEP of Options WAEP
Total options granted as at beginning of year 65,466,338 P
=129.24 61,141,454 =
P122.96
Options granted during the year 5,548,602 214.00 4,324,884 218.00
Total options granted as at end of year 71,014,940 P
=135.87 65,466,338 =
P129.94
The weighted average fair value of stock options granted is = P77.52 and = P64.50 in 2023 and 2022,
respectively. The fair value of the share options as at grant date is estimated using the Black-Scholes
Option Pricing Model, taking into account, the terms and conditions upon which the options were
granted. The option style used for this plan is the American style because this option plan allows
exercise before the expiry date.
*SGVFS187611*
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The inputs to the model used for the options granted on the dates of grant for each MSOP cycle are
shown below:
The expected life of the stock options is based on historical data and current expectations and is not
necessarily indicative of exercise patterns that may occur. The expected volatility reflects the
assumption that the historical volatility over a period similar to the life of the options is indicative of
future trends, which may also not necessarily be the actual outcome.
ELTIP. The ELTIP entitlement is given to members of the senior management committee and
designated consultants of the Company.
Each ELTIP cycle refers to the period commencing on the ELTIP entitlement date and ending on the
last day of the ELTIP exercise period. Actual grant and vesting are conditional upon achievement of
the JFC Group’s medium to long-term goals and individual targets in a given period, and the
employment of the employee-participants in the Company within the vesting period. If the goals are
achieved, the options will be granted. For the 3rd ELTIP cycle, a percentage of the options to be
granted are based on the percentage of growth in annual earnings per share such that 100%, 50% or
25% of the options are granted when percentage of growth in annual earnings per share are 12% and
above, 10% to less than 12% or 8% to less than 10%, respectively. For the 4th ELTIP cycle, the
percentage of the options to be granted and the target percentage of growth in annual earnings per
share have been further revised such that 150%, 100% or 50% of the options granted when
percentage of growth in annual earnings per share are 15% and above, 12% to less than 15% or 10%
to less than 12%, respectively.
The exercise price of the stock options under ELTIP is determined by the Company with reference to
the prevailing market prices over the three months immediately preceding the date of entitlement for
the first and second ELTIP cycles. Starting with the 3rd ELTIP cycle, the exercise price of the option
is determined by the Company with reference to the closing market price as at date of the entitlement.
The options will vest at the rate of one-third of the total options granted on each anniversary date
which will start after the goals are achieved. For instance, on July 1, 2004, the Compensation
Committee gave an entitlement of 22,750,000 options under the 1st ELTIP cycle to eligible
participants. One-third of the options granted, or 7,583,333 options, vested and were exercised
starting July 1, 2007 until June 30, 2012. On July 1, 2008, October 19, 2012, August 25, 2015,
January 3, 2018 and May 19, 2021, entitlement to 20,399,999, 24,350,000, 11,470,000, 9,290,000 and
15,629,998 options were given to eligible participants under the 2nd, 3rd, 4th, 5th and 6th ELTIP
cycles, respectively.
*SGVFS187611*
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The stock options granted under the 1st, 2nd, 3rd and 4th ELTIP cycles expired on June 30, 2012,
April 30, 2017, April 30, 2020 and April 30 2023, respectively. The 5th ELTIP cycle was not granted
to ELTIP participants as the JFC Group did not achieve the minimum hurdle rate of 10% of annual
growth of the EPS due to the impact of the COVID-19 pandemic to JFC Group’s business
performance in 2020.
The movements in the number of stock options outstanding for the 3rd to 4th ELTIP cycles and
related WAEP for the years ended December 31, 2023 and 2022 follow:
2023 2022
Number Number
of Options WAEP of Options WAEP
Total options granted as at
beginning and end of year 78,969,999 P
=74.58 78,969,999 =74.58
P
The weighted average remaining contractual life for the stock options outstanding is nil and 0.33
years as at December 31, 2023 and 2022, respectively.
The fair value of stock options granted is =
P26.13 in 2015. There were no additional stock option
grants under ELTIP in 2023 and 2022. The fair value of share options as at grant date is estimated
using the Black-Scholes Option Pricing Model, taking into account, the terms and conditions upon
which the options were granted. The option style used for this plan is the American style because this
option plan allows exercise before the maturity date.
The inputs to the model used for the options granted on the dates of grant for the 4th ELTIP cycle are
as shown below:
Risk-free Expected Stock Price
Year Dividend Expected Interest Life of on Grant Exercise
ELTIP cycle of Grant Yield Volatility Rate the Option Date Price
4th 2015 2.00% 18.94% 2.98% 3-4 years 180.00 180.00
The expected life of the stock options is based on historical data and current expectations and is not
necessarily indicative of exercise patterns that may occur. The expected volatility reflects the
assumption that the historical volatility over a period similar to the life of the options is indicative of
future trends, which may also not necessarily be the actual outcome.
The cost of the stock options charged to operations under “General and administrative expenses”
account for both MSOP and ELTIP amounted to = P278.7 million and =
P134.9 million in 2023 and
2022, respectively (see Note 23). The cost of share options for employees of the subsidiaries
amounted to =P75.1 million and =P50.2 million in 2023 and 2022, respectively, and was recognized as
additional investments in subsidiaries (see Note 10).
*SGVFS187611*
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*SGVFS187611*
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The following table provides the summary of transactions that have been entered into with related parties as at and for the years ended December 31, 2023 and 2022:
Volume of Outstanding
Transactions Receivable (Payable)
Category 2023 2022 2023 2022 Terms Conditions
Subsidiaries
Fresh N’ Famous (FNF)
Sales = 15,631,672
P =19,845,538
P = 129,467,502
P =16,480,921
P On demand; Noninterest-bearing Unsecured; No impairment
Service fee revenue 203,995,412 275,480,285 44,303,400 259,645,123 On demand; Noninterest-bearing Unsecured; No impairment
Rent revenue 28,475,792 31,443,142 1,337,544 1,108,925 On demand; Noninterest-bearing Unsecured; No impairment
Management fee revenue 504,527,306 466,451,220 152,061,792 337,416,508 On demand; Noninterest-bearing Unsecured; No impairment
Interest Income 2,801,538 9,107,861 ‒ 6,018,058 On demand; Noninterest-bearing Unsecured; No impairment
Interest expense ‒ 1,310,888 ‒ (21,636) Monthly; Floating interest rate Unsecured
Due to FNF ‒ 150,000,000 ‒ ‒ 3-month term; Fixed interest rate Unsecured
Due from FNF (250,000,000) (400,000,000) ‒ 250,000,000 1-year & 2-year term; Fixed interest rate Unsecured, No impairment
Pass-on charges – Receivables 8,613,810 − 32,137,688 23,523,878 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables 1,005,952 − (1,756,210) (750,258) On demand; Noninterest-bearing Unsecured
Royalty expense 535,437 76,861 (56,066) (69,154) On demand; Noninterest-bearing Unsecured; No impairment
Zenith
Sales 131,127,331 45,932,645 ‒ 821,846 On demand; Noninterest-bearing Unsecured; No impairment
Service fee revenue 20,663,594 97,712,370 961,569 85,172,258 On demand; Noninterest-bearing Unsecured; No impairment
Rent revenue 89,603,763 68,321,068 8,257,324 1,602 On demand; Noninterest-bearing Unsecured; No impairment
Management fee revenue 1,365,707,969 1,718,736,610 647,161,182 1,649,271,827 On demand; Noninterest-bearing Unsecured; No impairment
Interest income 53,609,561 22,318,872 17,197,243 8,944,371 On demand; Noninterest-bearing Unsecured; No impairment
Purchases 13,577,819,599 11,555,191,848 (583,493,364) (197,203,693) On demand; Noninterest-bearing Unsecured
Due from Zenith (500,000,000) 500,000,000 750,000,000 1,250,000,000 6-month to 1-year term; Unsecured; No impairment
Fixed interest rate
Pass-on charges – Receivables − − 20,614,638 7,230,261 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables − − (3,900,061) (111,384,839) On demand; Noninterest-bearing Unsecured
RRBI
Sales 751,149 1,457,184 136,782 344,542 On demand; Noninterest-bearing Unsecured; No impairment
Service fee revenue 20,605,473 67,031,509 53,895,586 57,093,886 On demand; Noninterest-bearing Unsecured; No impairment
Rent revenue 8,393,791 7,401,789 (1,858,989) (468,596) On demand, Noninterest-bearing Unsecured; No impairment
Management fee revenue 155,620,091 176,379,366 38,087,494 117,954,064 On demand; Noninterest-bearing Unsecured; No impairment
Purchases ‒ ‒ (1,070,524) (1,070,524) On demand; Noninterest-bearing Unsecured
Interest Income 30,547,045 15,414,630 34,600,034 6,690,416 On demand; Noninterest-bearing Unsecured; No impairment
Due from RRBI ‒ (150,000,000) 550,000,000 550,000,000 1-year term; Fixed interest rate Unsecured, No impairment
Pass-on charges – Receivables 2,546,207 − 14,070,450 11,524,243 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables 6,209,839 1,292,082 (7,501,921) (1,292,082) On demand; Noninterest-bearing Unsecured; No impairment
(Forward)
*SGVFS187611*
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Volume of Outstanding
Transactions Receivable (Payable)
Category 2023 2022 2023 2022 Terms Conditions
Grandworth
Service fee revenue =‒
P P
=2,442 =‒
P P
= 2,711 On demand; Noninterest-bearing Unsecured; No impairment
Management fee revenue ‒ 162,182 ‒ 158,938 On demand; Noninterest-bearing Unsecured
Dividend income 250,000,000 ‒ − −
Rent expense 11,379,749 13,146,126 (4,743,106) (3,917,313) On demand; Noninterest-bearing Unsecured
Pass-on charges – Receivables − − 2,732,954 2,732,954 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables − − (11,201,460) (11,201,460) On demand; Noninterest-bearing Unsecured
Freemont
Sales 90,729,630 71,282,894 111,586,173 5,066,516 On demand; Noninterest-bearing Unsecured; No impairment
Service fee revenue 198,007,458 167,766,968 85,105,640 141,937,322 On demand; Noninterest-bearing Unsecured; No impairment
Management fee revenue 830,551,728 813,091,905 220,216,860 378,222,434 On demand; Noninterest-bearing Unsecured; No impairment
Royalty fee income 1,699,381,094 1,444,123,162 332,199,524 188,681,452 On demand; Noninterest-bearing Unsecured; No impairment
Advertising 566,460,365 481,374,387 − − On demand; Noninterest-bearing Unsecured; No impairment
Interest income 2,716,658 17,217,485 ‒ 6,565,803 On demand; Noninterest-bearing Unsecured; No impairment
Due from FFC (250,000,000) (500,000,000) ‒ 250,000,000 1-year & 2-year term; Fixed interest rate Unsecured, No impairment
Pass-on charges – Receivables 37,326,447 − 91,848,632 54,522,185 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables 9,381,594 − (25,575,153) (224,413,251) On demand; Noninterest-bearing Unsecured
JWS
Sales 1,642,970 1,780,701 − − On demand; Noninterest-bearing Unsecured; No impairment
Service fee revenue 39,204,933 32,281,379 56,536,071 55,426,371 On demand; Noninterest-bearing Unsecured; No impairment
Rent revenue 44,283,006 30,612,587 1,716,526 2,630,053 On demand; Noninterest-bearing Unsecured; No impairment
Service fee expense 1,626,633,616 1,663,142,549 (931,837,806) (851,955,850) On demand; Noninterest-bearing Unsecured
Management fee revenue 654,845 − − −
Pass-on charges – Receivables 33,743,475 − 94,204,830 60,461,355 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables 4,894,247 − (52,295,316) (55,777,440) On demand; Noninterest-bearing Unsecured
Mang Inasal
Sales 756,192 766,328 106,757 111,260 On demand; Noninterest-bearing Unsecured; No impairment
Service fee revenue 30,340,300 60,884,542 5,214,196 43,660,772 On demand; Noninterest-bearing Unsecured; No impairment
Rent revenue 10,106,024 8,247,137 1,080,484 1,494,760 On demand; Noninterest-bearing Unsecured; No impairment
Management fee revenue 195,414,628 174,023,332 44,032,513 62,976,478 On demand; Noninterest-bearing Unsecured; No impairment
Interest income 3,471,546 8,809,343 52,538 455,755 On demand; Noninterest-bearing Unsecured; No impairment
Due from MIPI (75,000,000) (150,000,000) 75,000,000 150,000,000 2-year & 3-year term; Fixed interest rate Unsecured; No impairment
Pass-on charges – Receivables 3,320,561 − 13,961,884 10,641,323 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables ‒ (15,714) 32,566 (15,714) On demand; Noninterest-bearing Unsecured
Royalty expense 595,277 58,670 (72,679) (46,936) On demand; Noninterest-bearing Unsecured; No impairment
(Forward)
*SGVFS187611*
- 61 -
Volume of Outstanding
Transactions Receivable (Payable)
Category 2023 2022 2023 2022 Terms Conditions
PERFI
Sales = 13,942,726
P P
= 5,833,016 = 374,623
P P
= 16,218,752 On demand; Noninterest-bearing Unsecured; No impairment
Service fee revenue 93,856,093 73,056,718 201,136,460 73,304,467 On demand; Noninterest-bearing Unsecured; No impairment
Rent revenue 7,044,876 7,207,877 1,246,487 2,312,797 On demand; Noninterest-bearing Unsecured; No impairment
Management fee revenue 192,337,466 173,423,796 82,133,249 128,919,699 On demand; Noninterest-bearing Unsecured; No impairment
Interest income 54,203,000 54,203,000 285,827,892 235,077,079 On demand; Noninterest-bearing Unsecured; No impairment
Due from PERFI − − 1,618,000,000 1,618,000,000 5-year term; Interest-bearing Unsecured; No impairment
Pass-on charges – Receivables − − 3,062,510 65,527,743 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables 67,595 − (94,998) (27,403) On demand; Noninterest-bearing Unsecured
PERF MOA Pasay, Inc.
Sales 2,646 1,071 − − On demand; Noninterest-bearing Unsecured; No impairment
Service fee revenue 308,288 2,542 387 383 On demand; Noninterest-bearing Unsecured; No impairment
PERF Trinoma, Inc.
Sales 1,071 19,714 ‒ ‒ On demand; Noninterest-bearing Unsecured; No impairment
Service fee revenue 281,699 114,733 24,496 875 On demand; Noninterest-bearing Unsecured; No impairment
Adgraphix
Marketing collaterals 11,129,795 8,813,376 (19,152,294) (51,605,978) On demand; Noninterest-bearing Unsecured
FCJB Foods, Inc.
Capital Infusion 150,000,000 − − − On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Receivables 17,794,303 − 17,794,303 − On demand; Noninterest-bearing Unsecured; No impairment
Chanceux, Inc.
Pass-on charges – Receivables − − 44,400 44,400 On demand; Noninterest-bearing Unsecured; No impairment
JWPL
Royalty fee income 194,244,348 297,033,159 554,930,156 362,199,632 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Receivables ‒ ‒ 882,756 ‒
Pass-on charges – Receivables (Executive Payroll) 15,195,994 20,717,163 35,913,157 20,717,163 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables 14,252,443 (3,799,532,201) (3,908,758,295) (3,799,532,201) On demand; Noninterest-bearing Unsecured; No impairment
Interest expense 90,227,860 188,020,997 (1,457,369) (4,769,383) On demand; Noninterest-bearing Unsecured; No impairment
Due from JWPL ‒ (9,906,000,000) ‒ ‒ 1-year term; Interest-bearing Unsecured; No impairment
Due to JWPL (Loans) 2,472,855,938 (534,525,251) (534,451,896) (2,424,914,749) 5-year term; Interest-bearing Unsecured; No impairment
Due to JWPL (Sale of BGI Shares) 2,666,870,000 (6,451,264,834) (3,586,754,766) (6,451,264,834) 10-year term; Interest-bearing Unsecured; No impairment
(Forward)
*SGVFS187611*
- 62 -
Volume of Outstanding
Transactions Receivable (Payable)
Category 2023 2022 2023 2022 Terms Conditions
HFC
Sales = 684,558,830
P P
=871,036,773 = 2,676,023,785
P P
=2,404,591,643 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables 12,302 (20,619) (32,921) (20,619) On demand; Noninterest-bearing Unsecured; No impairment
Tokyo Teriyaki Corporation
Pass-on charges – Payables 14,601 ‒ (14,601) ‒ On demand; Noninterest-bearing Unsecured; No impairment
PHO 24 Service Trade Manufacturing Corporation
Pass-on charges – Receivables 15,806,794 ‒ 15,589,992 ‒ On demand; Noninterest-bearing Unsecured
PHO Viet Joint Stock Company
Pass-on charges – Receivables 12,766,770 ‒ 12,634,706 ‒ On demand; Noninterest-bearing Unsecured
Quantum Corporation
Pass-on charges – Receivables 4,742,519 ‒ 4,677,472 ‒ On demand; Noninterest-bearing Unsecured
SF Vung Tao Joint Stock Company
Pass-on charges – Receivables 42,146,239 ‒ 41,606,968 ‒ On demand; Noninterest-bearing Unsecured
The Coffee Bean & Tea Leaf (Singapore) Pte. Ltd.
Pass-on charges – Receivables 1,600 ‒ 1,600 ‒ On demand; Noninterest-bearing Unsecured
JBM LLC
Royalty fee income 158,509,608 ‒ 134,174,918 ‒ On demand; Noninterest-bearing Unsecured
Meko Holding Limited
Sales 3,006,621 ‒ 3,006,621 ‒ On demand; Noninterest-bearing Unsecured
Jollibee USA – JB US
Interest Income 5,263,865 ‒ 5,263,865 ‒ On demand; Noninterest-bearing Unsecured
Due from JB USA 318,377,500 ‒ 318,377,500 ‒ 3.5-year term; floating interest rate Unsecured
Service Fees Expense 133,987,556 ‒ (19,495,641) ‒ On demand; Noninterest-bearing Unsecured
Capital Infusion 223,052,202 ‒ ‒ ‒
(Forward)
*SGVFS187611*
- 63 -
Volume of Outstanding
Transactions Receivable (Payable)
Category 2023 2022 2023 2022 Terms Conditions
HFCC
Royalty fee income = 271,685,278
P P
=245,180,929 = 620,007,391
P P
=563,587,545 On demand; Noninterest-bearing Unsecured; No impairment
Sales 366,000,382 93,468,905 103,075,700 103,075,700 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Receivables ‒ ‒ 558,464 558,464 On demand; Noninterest-bearing Unsecured; No impairment
Golden Beeworks Pte., Ltd.
Sales 98,848,894 60,850,074 74,348,761 23,030,474 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables 435,564 (358,871) (794,434) (358,871) On demand; Noninterest-bearing Unsecured; No impairment
Jollibee Vietnam Corporation Ltd.
Sales 73,952,228 69,878,968 603,527,810 586,480,814 On demand; Noninterest-bearing Unsecured; No impairment
Highlands Coffee
Sales ‒ 6,141,087 ‒ 6,141,087 On demand; Noninterest-bearing Unsecured; No impairment
Service fee revenue 7,852,503 ‒ 3,003,966 ‒ Unsecured; No impairment
Guarantee fee income ‒ 304,589 78,432,436 76,882,529 On demand; Noninterest-bearing Unsecured; No impairment
Bee World UK Limited
Sales 38,151,210 7,050,733 49,569,226 7,975,411 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Receivables 3,472,220 3,472,220 16,717,398 16,152,314 On demand; Noninterest-bearing Unsecured; No impairment
Due to related parties ‒ (727,413) (108,610) (727,413) On demand; Noninterest-bearing Unsecured
Cibo Felice S.R.L (Jb Italy)
Sales 6,621,208 1,485,792 8,107,000 1,485,792 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Receivables 794,844 1,358,517 26,360,665 25,854,597 On demand; Noninterest-bearing Unsecured; No impairment
SFVT
Pass-on charges – Receivables ‒ 7,644,307 ‒ 72,036,305 On demand; Noninterest-bearing Unsecured; No impairment
GSC
Pass-on charges – Receivables 2,692,991 2,584,272 2,692,991 ‒ On demand; Noninterest-bearing Unsecured; No impairment
Bee World Spain SLU
Sales ‒ 7,598 7,598 7,598 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Receivables 126,856 862,922 3,636,608 3,509,752 On demand; Noninterest-bearing Unsecured; No impairment
JFCC
Due to JFCC − − (52,408,390) (52,408,390) On demand; Noninterest-bearing Unsecured
Pass-on charges – Receivables − − 81,420,933 84,818,834 On demand; Noninterest-bearing Unsecured; No impairment
(Forward)
*SGVFS187611*
- 64 -
Volume of Outstanding
Transactions Receivable (Payable)
Category 2023 2022 2023 2022 Terms Conditions
PT Chowking Indonesia
Pass-on charges – Receivables =−
P P
=− = 32,681,758
P P
=24,077,725 On demand; Noninterest-bearing Unsecured; No impairment
RRBI USA
Pass-on charges – Receivables ‒ 47,548 438,384 557,404 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Payables 704,226 − (704,226) − On demand; Noninterest-bearing Unsecured; No impairment
Hong Zhuang Yuan
Due to Hong Zhuang Yuan − − (6,234,899) (6,234,899) On demand; Noninterest-bearing Unsecured
Pass-on charges – Receivables − − 806,607 926,429 On demand; Noninterest-bearing Unsecured; No impairment
Shanghai Yong He King
Pass-on charges – Receivables − − 21,272,075 26,509,393 On demand; Noninterest-bearing Unsecured; No impairment
Beijing Yong He King
Pass-on charges – Receivables − − 1,807,590 2,248,165 On demand; Noninterest-bearing Unsecured; No impairment
Shenzhen Yong He King
Pass-on charges – Receivables − − 2,513,027 2,953,847 On demand; Noninterest-bearing Unsecured; No impairment
Hangzhou Yongtong
Pass-on charges – Receivables − − 785,774 914,509 On demand; Noninterest-bearing Unsecured; No impairment
Hangzhou Yong He King
Pass-on charges – Receivables − − 707,747 841,948 On demand; Noninterest-bearing Unsecured; No impairment
Wuhan Yong He King
Pass-on charges – Receivables − − 1,270,026 1,571,572 On demand; Noninterest-bearing Unsecured; No impairment
Tianjin Yonghe King
Pass-on charges – Receivables − − 107,094 107,301 On demand; Noninterest-bearing Unsecured; No impairment
SBEMAC
Pass-on charges – Payables − − (549,383) (520,022) On demand; Noninterest-bearing Unsecured
BGCC
Pass-on charges – Receivables ‒ 1,788,092 ‒ 4,358,675 On demand; Noninterest-bearing Unsecured; No impairment
Happy Bee Anhui
Pass-on charges – Receivables 1,073,731 2,861,598 7,941,799 6,868,067 On demand; Noninterest-bearing Unsecured; No impairment
(Forward)
*SGVFS187611*
- 65 -
Volume of Outstanding
Transactions Receivable (Payable)
Category 2023 2022 2023 2022 Terms Conditions
BGI
Pass-on charges – Receivables = 715,226
P P
=1,301,779 P2,005,699
= P
=1,301,779 On demand; Noninterest-bearing Unsecured
Pass-on charges – Payables ‒ ‒ (1,889,231) (1,889,231) On demand; Noninterest-bearing Unsecured
SMCC-SG
Service fee revenue 13,437,481 7,154,911 8,605,418 7,154,911 On demand; Noninterest-bearing Unsecured; No impairment
Management fee revenue ‒ 1,628,285 ‒ 1,628,285 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on charges – Receivables 339,792 2,990,534 339,792 2,205,697 On demand; Noninterest-bearing Unsecured; No impairment
SMCC-Hungary
Pass-on charges – Receivables ‒ 4,720 ‒ 4,720 On demand; Noninterest-bearing Unsecured
Golden Plate Pte. Ltd.
Pass-on charges – Receivables 715,226 1,301,779 2,005,699 1,301,779 On demand; Noninterest-bearing Unsecured
Happy Bee Foods Processing Pte., Ltd.
Pass-on charges – Receivables 715,226 1,301,779 2,005,699 1,301,779 On demand; Noninterest-bearing Unsecured
JSF Investments Pte., Ltd.
Pass-on charges – Receivables 715,226 1,301,779 2,005,699 1,301,779 On demand; Noninterest-bearing Unsecured
Golden Cup Pte. Ltd.
Pass-on charges – Receivables 1,402,529 1,301,779 1,397,985 1,301,779 On demand; Noninterest-bearing Unsecured
Jollibee International (BVI) Ltd.
Pass-on charges – Receivables 715,226 1,301,779 2,005,699 1,301,779 On demand; Noninterest-bearing Unsecured
Golden Piatto Pte. Ltd.
Pass-on charges – Receivables 715,226 1,301,779 2,005,699 1,301,779 On demand; Noninterest-bearing Unsecured
Chowking Foods Coporation (USA)
Pass-on charges – Receivables 715,226 1,301,779 2,005,699 1,301,779 On demand; Noninterest-bearing Unsecured
Jollibee Worldwide Pte. Ltd. – JWPLM HK
Pass-on charges – Receivables (Executive Payroll) 70,358,455 35,029,053 105,387,508 35,029,053 On demand; Noninterest-bearing Unsecured
Pass-on charges – Receivables 687,304 ‒ 687,304 ‒ On demand; Noninterest-bearing Unsecured
(Forward)
*SGVFS187611*
- 66 -
Volume of Outstanding
Transactions Receivable (Payable)
Category 2023 2022 2023 2022 Terms Conditions
Jollibee Worldwide Pte. Ltd. – JWPLM SG
Management fee expense = 382,299,525
P (P
=40,550,508) (P
= 422,850,033) (P
=40,550,508) On demand; Noninterest-bearing Unsecured
Pass-on charges – Receivables (Executive Payroll) 93,719,413 ‒ 93,719,413 ‒ On demand; Noninterest-bearing Unsecured
Pass-on charges – Receivables 687,304 ‒ 687,304 ‒ On demand; Noninterest-bearing Unsecured
Joint Venture and Associate
Panda Express
Pass-on Charges – Receivables 79,783,875 998,088 80,797,963 998,088 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on Charges – Payables 343,257 (72,991) (399,433) (72,991) On demand; Noninterest-bearing Unsecured; No impairment
Yoshinoya
Pass-on Charges – Receivables 5,128,721 3,680,280 1,268,620 3,680,280 On demand; Noninterest-bearing Unsecured; No impairment
Pass-on Charges – Payables 608,220 (60,348) (341,766) (60,348) On demand; Noninterest-bearing Unsecured; No impairment
Affiliate
Jollibee Group Foundation, Inc.
Service fee revenue 755,331 672,722 1,653,562 454,700 On demand; Noninterest-bearing Unsecured
Rent revenue 1,138,953 830,863 (262,099) 375,081 On demand; Noninterest-bearing Unsecured
Donations 151,146,184 8,630,912 − − On demand; Noninterest-bearing Unsecured
Reimbursements 1,406,502 848,847 1,071,367 1,036,972 On demand; Noninterest-bearing Unsecured
Total related party transactions:
Net sales = 1,525,724,760
P =1,256,839,021
P
Management fee revenue 3,244,814,033 3,523,896,696
Royalty fee income (see Note 21) 2,323,820,328 1,986,337,250
Service fee revenue 629,308,565 782,161,121
Dividend income (see Note 25) 250,000,000 ‒
Rent revenue 189,046,205 154,064,463
Interest income (see Note 24) 152,613,213 127,071,191
Guarantee fee income (see Note 25) ‒ 304,589
Purchases (see Note 22) 13,577,819,599 11,555,191,848
Service fee expense (see Notes 22 and 23) 1,760,621,172 1,663,142,549
Advertising (see Note 22) 577,590,160 490,187,763
Donations (see Note 23) 151,146,184 8,630,912
Interest expense (see Note 24) 90,227,860 189,331,885
Rent expense (see Notes 22, 23 and 30) 11,379,749 13,146,126
Royalty expense 1,130,714 135,531
(Forward)
*SGVFS187611*
- 67 -
Volume of Outstanding
Transactions Receivable (Payable)
Category 2023 2022 2023 2022 Terms Conditions
Advances from related parties = 5,139,725,938
P (P
=6,785,327,498)
Advances to related parties (756,622,500) 10,606,000,000)
Pass-on charges – Receivables 459,279,336 94,453,546
Pass-on charges – Payables 37,929,840 (3,801,352,826)
Reimbursements 1,406,502 848,847
Capital infusion 373,052,202 ‒
Management fee expense 382,299,525 40,550,508
Total related party outstanding balances:
Trade receivables from related parties and
contract assets (see Note 6) = 8,404,206,778
P P
=8,620,375,674
Advances to related parties 3,287,741,204 4,068,044,000
Trade payables to related parties (see Note 16) (2,865,637,060) (5,358,996,301)
Due to related parties (7,314,327,225) (8,935,550,285)
*SGVFS187611*
- 68 -
Fresh N’ Famous
a. Fresh N’ Famous:
Avails the services of the Company for the plan, design, installation and repairs of equipment
in Fresh N’ Famous’ stores;
Leases its office space and some store locations from the Company; and,
Pays management fees to the Company for services rendered under an existing Management
Services Agreement, which is renewable annually.
b. On September 21, 2021, the Company provided advances to Fresh N’ Famous amounting to
=250.0 million in which the interest rate will be based on latest borrowing rate structure for PHP
P
loans (BVAL+60bps), BVAL will be based on interpolated BVAL of 1.5 years and with maturity
date of June 21, 2023. The loan was paid in full on maturity.
Zenith
a. Zenith:
Pays service fees to the Company for procurement services rendered by the Company’s
Purchasing Department.
Leases the property where it’s manufacturing plant was built. In 2014, the lease term was
extended to end on December 31, 2023. On January 1, 2015, the terms of the agreement were
amended to include an escalation clause. Zenith may pre-terminate the lease provided that an
advance notice is provided to the Company within the prescribed period as indicated in the
agreement.
In 2022, the lease agreement was amended to 1) extend the lease term until April 30, 2045 of
the manufacturing plant, and 2) to sublease the land where the manufacturing plant was built.
Based on the terms of the leases, the lease of land is accounted for under finance lease while,
the lease of the manufacturing plant is accounted for under operating lease (see Note 30).
The carrying value of the finance lease receivable of the Company amounted to
P
=717.6 million and =
P711.3 million as at December 31, 2023 and 2022, respectively
(see Note 30). The net gain arising from the sublease amounted to nil and =
P476.0 million in
2023 and 2022, respectively (see Note 25).
Pays management fees to the Company for services rendered under an existing Management
Services Agreement, which is renewable annually.
b. The Company pays service fees to Zenith for supply chain and customer and order management
services, including warehousing and logistics services, under an existing Service Contract.
*SGVFS187611*
- 69 -
c. On June 16, 2020, the Company entered into a loan agreement with Zenith with principal amount
of P
=750.0 million with a stated interest rate of 6.00% per annum and maturity date of June 16,
2021. In 2021, the maturity period of the loan was extended until September 16, 2021 with a
revised interest rate of 2.95%. In 2022, the maturity period was extended until December 16,
2022 with a revised interest rate of 2.77%, and subsequently extended until June 23, 2023 with a
revised interest rate of 5.15%. In 2023, the maturity period was extended until May 24, 2024
with a revised interest rate of 6.25%.
d. On November 18, 2022, the Company entered into a loan agreement with Zenith with a principal
amount of =P500.0 million and a stated interest rate of 5.29% per annum and a maturity period of
January 18, 2023. In 2023, the maturity period was extended until August 18, 2023 with a
revised interest rate of 6.49%. The loan was paid in full on maturity.
RRBI
a. RRBI:
Avails the services of the Company for the repairs and maintenance of RRBI’s store
equipment and facilities;
Leases its office space from the Company on an annual basis; and,
Pays management fees to the Company for services rendered under an existing Management
Services Agreement, which is renewable annually.
b. On April 17, 2020, the Company provided advances to RRBI amounting to = P700.0 million
subject to 6.0% annual interest with maturity date of April 16, 2021, and extended for another
year until April 15, 2022. In 2022, there’s a principal prepayment of intercompany advances
amounting to =P150.0 million and the remaining = P550.0 million is extended to April 15, 2024.
Grandworth
a. Grandworth:
Avails the services of the Company for business support services;
Pays management fees to the Company for services rendered under an existing Management
Services Agreement, which is renewable annually; and,
Has various operating lease agreements with the Company. These lease agreements have
terms ranging from 5 to 20 years, which mostly contain renewal options. The lease
agreements include escalation clauses on an annual basis based on prevailing market
conditions.
Freemont
a. Freemont operates “Jollibee” stores in certain parts of Luzon, Visayas and Mindanao under a
Royalty and Service Agreement with the Company. As a franchisor of Freemont, the Company’s
sales of food supplies, processed inventories and packaging, store and other supplies to Freemont
are accounted for as part of the Company’s “Net sales” account in the Company’s statements of
comprehensive income. Freemont also pays royalties and advertising fees to the Company based
on certain percentages of Freemont’s net sales as provided in the Royalty and Service Agreement.
These transactions were made on similar terms as third-party franchisees.
b. Freemont:
Pays service fees to the Company for various services, including repairs and maintenance
services, rendered by the Company’s personnel; and,
Pays management fees to the Company for managerial services on all aspects of the
operations of Freemont’s stores under Management Contract (the Contract). Management
fees are based on a percentage of Freemont’s net sales as provided for in the Contract.
*SGVFS187611*
- 70 -
b. The Company has existing one-year contracts with JWS for accounting and human resource
services, and logistics services relating to inbound and outbound logistics, warehousing, scrap
disposal and other inventory handling services. The contracts are renewable and with service fees
determined annually.
Mang Inasal
a. Mang Inasal:
Avails the services of the Company for the plan, design and installation of equipment for
Mang Inasal stores;
Leases some of its store locations from the Company. The agreements are for a period of 5 to
20 years with escalation clauses and subject to renewal upon mutual agreement of both
parties; and,
Pays management fees to the Company for services rendered under an existing Management
Services Agreement, which is renewable annually.
b. On October 28, 2021, the Company provided advances to Mang Inasal amounting to
P
=200.0 million, then have partial prepayments of =
P75.0 million and =
P50.0 million on October 28,
2023 and 2022, respectively. The remaining =P75.0 million is subject to 3.50% annual interest
with maturity date of October 28, 2024.
PERFI
a. PERFI:
Avails the services of the Company for the repairs and maintenance of PERFI’s store
equipment and facilities;
Leases its office space and pays rental fees to the Company for the use of meeting rooms and
parking spaces; and,
Pays management fees to the Company for services rendered under an existing Management
Services Agreement, which is renewable annually.
b. On June 27, 2018, the Company entered into an agreement with PERFI for a loan amounting to
P
=200.0 million subject to a 3.5% fixed interest rate due on June 27, 2019. In 2019, the maturity
period of the loan was extended into a five (5) year period until June 27, 2024 with a stated
interest of 5.75%.
In 2017, the Company entered into three (3) loan agreements with PERFI. The Company has
extended the first loan in the principal amount of =P130.0 million on April 17, 2017, the second
loan in the principal amount of =P130.0 million on July 14, 2017 and the third loan in the principal
amount of =P250.0 million on October 19, 2017. The loans are subject to interest rate of 3%, 1.5%
and 2.2%, respectively, and are payable on December 17, 2018, July 14, 2018 and April 19, 2018,
respectively. In 2019, the maturity period of these loan agreements was extended into a five (5)
year term loan with stated interest rates ranging from 5.75% to 6% per annum.
*SGVFS187611*
- 71 -
In 2016, the Company entered into three (3) loan agreements with PERFI, each with a principal
amount of = P100.0 million and a stated interest rate of 3% per annum. The Company has extended
its first two =
P100.0 million loans on December 15, 2016. The third loan agreement was entered
into by the Company on December 22, 2016. All loans are payable on March 22, 2017 and were
extended until September 22, 2017. In 2017, the maturity period of the loan agreements were
extended until 2018. In 2019, the maturity period of these loan agreements was extended into a
five (5) year term loan with stated interest rates ranging from 5.75% to 6% per annum.
In 2015, the Company extended a five-year loan to PERFI amounting to = P300.0 million for use in
the operations and store expansions of the Burger King business, subject to 5.0% interest rate per
annum. As at December 31, 2023, said loan availed in 2015 were not yet paid and renewal of the
said loan agreements are in process.
In 2014, the Company entered into four (4) loan agreements with PERFI. The Company has
extended the first loan in the principal amount of =
P54.0 million on February 14, 2014, the second
loan in the principal amount of =P54.0 million on May 30, 2014, the third loan in the principal
amount of = P100.0 million on September 2, 2014, and the fourth loan in the principal amount of
P
=100.0 million on September 26, 2014. All loans are subject to interest at the rate of 5.0% per
annum that is to be paid semi-annually. Principal shall be due and paid in lump sum five (5)
years after the drawdown date. As at December 31, 2023, said loans availed in 2014 were not yet
paid and renewal of the said loan agreements are in process.
JWPL
In 2012, the Company entered into a Royalty and License Agreement with JWPL. The terms and
conditions are similar in nature with those discussed in Note 21.
Others
Related party transactions and balances for other subsidiaries of the Company are similar in nature
with those discussed above.
JWPL
In 2020, the Company provided a guarantee on JWPL’s US$600.0 million senior perpetual securities
and US$300.0 million 5.5-year and US$300.0 million 10-year senior debt securities.
SJBF
On February 3, 2020, the Company provided a guarantee on SJBF’s US$35.0 million short-term
uncommitted line of credit agreement with a local bank. On August 30, 2022, SJBF requested to
decrease the maximum amount for uncommitted line of credit to US$30.0 million. The credit
agreement was extended until February 3, 2024.
Highlands Coffee
a. The Company provided a guarantee on Highlands Coffee’s two 5-year unsecured loan acquired
from a local bank in Vietnam amounting to VND232.0 billion available in tranches within twelve
(12) months from July 27, 2020 and September 27, 2021.
b. The Company provided a guarantee on Highlands Coffee’s 5-year unsecured loan acquired from
a local bank in Vietnam amounting to VND114.0 billion available in tranches within twelve (12)
months from April 27, 2022.
c. The Company recognized guarantee fee income from Highlands Coffee amounting to nil and
P
=0.3 million thousand in 2023 and 2022, respectively (see Note 25).
*SGVFS187611*
- 72 -
ZFC
a. On October 6, 2021, the Company provided a guarantee on ZFC’s long-term loans availed from a
local bank amounting to =
P3,000.0 million and =
P1,000.0 million.
ICTL
On August 12, 2022, the Company provided a guarantee on ICTL’s USD15.0 million short-term
uncommitted line of credit agreement with a local bank. On February 1, 2023, the credit agreement
was extended until March 22, 2024.
CBTL-SG
The Company provided a guarantee on CBTL-SG’s SGD13.0 million short-term uncommitted line of
credit agreement with a local bank on September 23, 2022.
2023 2022
Short-term employee benefits P
=1,138,559,020 =1,134,435,410
P
Stock options expense (see Notes 23 and 28) 289,843,955 152,195,421
Pension expense (see Note 27) 213,287,650 94,513,447
Employee car plan benefits 28,201,754 31,235,751
P
=1,669,892,379 =1,412,380,029
P
The Company usually advances the pension benefits of its retiring employees which are reimbursable
from the retirement fund. The Company’s receivable from its retirement fund from these advances
amounted to = P664.2 million and =
P419.0 million as at December 31, 2023 and 2022, respectively
(see Notes 6 and 27).
*SGVFS187611*
- 73 -
The difference of rent income recognized under the straight-line method and the rent received in
accordance with the terms of the lease agreements, amounting to = P90.4 million and
P
=47.2 million as at December 31, 2023 and 2022, respectively, are presented as “Lease
receivables” in the parent company statements of financial position. Rent income recognized on
a straight-line basis amounted to =
P329.3 million and =
P291.6 million in 2023 and 2022,
respectively.
The future minimum rent receivables for the non-cancellable periods of the operating leases
follow:
2023 2022
Within one year P
=1,085,728,787 =101,039,236
P
After one year but not more than five years 3,972,399,687 1,011,741,304
More than five years 3,458,809,456 22,465,907,884
P
=8,516,937,930 =
P23,578,688,424
The following are the carrying amounts of right-of-use assets recognized and the movements
during the year:
*SGVFS187611*
- 74 -
The following are the carrying amounts of lease liabilities and the movements during the period:
2023 2022
Balances at beginning of year P
=6,280,190,961 =P5,562,200,570
Additions 675,452,452 1,540,941,209
Accretion of interest (see Note 24) 358,585,696 365,447,682
Payments (1,139,783,189) (1,083,595,956)
Rent concessions (see Note 22) ‒ (68,927,227)
Pre-termination (76,514,600) (35,875,317)
Balances at end of year P
=6,097,931,320 P=6,280,190,961
The following are the amounts recognized in the statements of comprehensive income:
2023 2022
Depreciation expense of right-of-use assets (see
Notes 22 and 23) P
=868,929,901 =915,439,543
P
Interest expense on lease liabilities (see Note 24) 358,585,696 365,447,682
Rent expense relating to variable leases (included
under “Cost of sales”) (see Note 22) 485,987,773 257,547,075
Rent concessions (see Note 22) ‒ (68,927,227)
Rent expense relating to short-term leases (included
under “Cost of sales”) (see Note 22) 17,567,264 8,859,716
Rent expense relating to short-term leases (included
under “General and Administrative Expenses”)
(see Note 23) 177,524,154 144,550,976
Pre-termination of lease (see Note 25) (14,502,147) (20,004,969)
P
=1,894,092,641 P=1,602,912,796
Set out below are the carrying amounts of finance lease receivables and the movements during the
year ended December 31, 2023:
Principal
Balance at beginning of year =1,473,775,584
P
Collections during the year (37,373,708)
Balance at end of year 1,436,401,876
Unearned Finance Income
Balance at beginning of year (762,459,871)
Accretion of interest (See Note 24) 43,619,047
Balance at end of year (718,840,824)
Net investment in the lease at end of year =717,561,052
P
*SGVFS187611*
- 75 -
Shown below is the maturity analysis of the undiscounted finance lease receivables as at
December 31, 2023:
1 year P39,242,396
=
More than 1 year to 5 years 227,680,948
More than five years 1,169,478,532
Contingencies
The Company is involved in litigations, claims and disputes which are normal to its business. Except
for those legal claims provided for in Note 17, management believes that the ultimate liability, if any,
with respect to these litigations, claims and disputes will not materially affect the financial position
and performance of the Company.
The Company does not provide further information on these provisions and contingencies, in order
not to impair the outcome of the litigations, claims and disputes.
The Company is exposed to a variety of financial risks which result from both its operating and
financing activities. The Company’s risk management policies focus on actively securing the
Company’s short-term to medium-term cash flows by minimizing the exposure to financial markets.
The Company’s principal financial instruments comprise of cash and cash equivalents, short-term
investments, receivables, trade payables and other current liabilities (excluding local and other taxes
payable, liabilities to government agencies and accrual for gift certificates), short-term debt and
long-term debt. The Company also has other financial assets and liabilities such as advances to
related parties, refundable deposits, financial assets at FVTPL, due to related parties, lease receivables
and lease liabilities.
The Company does not engage in trading financial assets for speculative purposes.
The BOD has overall responsibility for the establishment of the risk management policies to identify
and analyze risks faced by the Company. Risk management policies are reviewed regularly to reflect
changes in the Company’s condition with regard to the risks arising from these financial instruments.
The main risks arising from the use of these financial instruments are foreign currency risk, interest
rate risk, credit risk and liquidity risk. The Company’s BOD and management review and approve
policies for managing each of these risks and they are summarized below.
The following tables show the Company’s foreign currency-denominated monetary assets and
liabilities and their peso equivalents as at December 31:
2023
US$ PhP
=
Foreign currency denominated assets:
Cash and cash equivalents $17,625,165 =
P975,905,411
Financial assets at FVTPL 43 2,375
Foreign currency-denominated assets - net $17,625,208 =975,907,786
P
*SGVFS187611*
- 76 -
2022
US$ PhP
=
Foreign currency denominated assets:
Cash and cash equivalents $12,664,479 =
P706,171,349
Financial assets at FVTPL 43 2,397
12,664,522 706,173,746
Foreign currency denominated liabilities (33,701) (1,879,167)
Foreign currency-denominated assets - net $12,630,821 =
P704,294,579
The Company recognized in the parent company statements of comprehensive income included under
“Other income” account, net foreign exchange loss amounting to =
P41.9 million and = P501.8 million
for the years ended December 31, 2023 and 2022, respectively (see Note 25). This resulted from the
movements of the Philippine peso against the US dollar as shown in the following table:
Peso to
US Dollar
December 31, 2023 P
=55.37
December 31, 2022 =55.76
P
Foreign Currency Risk Sensitivity Analysis. The following table demonstrates the sensitivity to a
reasonably possible change in Philippine peso to US dollar exchange rates, with all other variables
held constant, of the Company’s cash and cash equivalents and financial assets at FVTPL to the
income before income tax as at December 31, 2023 and 2022 (due to the changes in the fair value of
monetary assets).
Effect on Income
Appreciation Before Income Tax
(Depreciation) of PhP= to US$
PhP
= Rate
2023 P
=1.50 (P
=26,438)
1.00 (17,625)
(1.50) 26,438
(1.00) 17,625
2022 =1.50
P (P
=18,946)
1.00 (12,631)
(1.50) 18,946
(1.00) 12,631
Interest Rate Risk
Interest rate risk arises from the possibility that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates.
The Company’s exposure to interest rate risk relates primarily to the Company’s short-term and long-
term advances from subsidiaries as discussed in Note 29 and short-term and long-term debt which are
discussed in Note 18. Floating rate financial instruments are subject to cash flow interest rate risk.
There is minimal exposure on the other sources of the Company’s interest rate risk. These other
sources are from the Company’s cash in bank, short-term deposits, refundable deposits and employee
car plan receivables.
*SGVFS187611*
- 77 -
Interest Rate Risk Sensitivity Analysis. The following table demonstrates the sensitivity to a
reasonably possible change in interest rates, with all other variables held constant, of the Company’s
income before income tax.
2022 100 (P
=88,263,927)
50 (44,131,963)
(100) 88,263,927
(50) 44,131,963
Fixed rate financial liabilities, although subject to fair value interest rate risk, are not included in the
sensitivity analysis since changes in interest rate do not impact interest expense recorded. The
assumed movement in basis points for interest rate sensitivity analysis is based on the currently
observable market environment.
Credit Risk
Credit risk is the risk that a customer or a counterparty fails to fulfill its contractual obligations to the
Company. This includes risk of non-payment by customers, borrowers and issuers, failed settlement
of transactions and default on outstanding contracts.
The Company has a strict credit policy. Its credit transactions are with franchisees that have gone
through rigorous screening before granting them the franchise and with related parties. The credit
terms are very short, while deposits and advance payments are also required before rendering the
services or delivering goods, thus, mitigating the possibility of non-collection. In cases of non-
collection, defaults of the debtors are not tolerated; the exposure is contained the moment a default
occurs and transactions that will increase the exposure of the Company are discontinued.
Other than its transactions with related parties, the Company has no significant concentration of credit
risk with counterparties since it has short credit terms to franchisees. In addition, the Company’s
franchisee profile is such that no single unrelated franchisee accounts for more than 5% of the total
system wide sales of the Company.
Credit Quality. The financial assets of the Company are grouped according to stage whose
description is explained as follows:
Stage 1 - those that are considered current and up to 30 days past due, and based on change in rating,
delinquencies and payment history, do not demonstrate significant increase in credit risk.
Stage 2 - those that, based on change in rating, delinquencies and payment history, demonstrate
significant increase in credit risk, and/or are considered more than 30 days past due but does not
demonstrate objective evidence of impairment as of reporting date.
Stage 3 - those that are considered in default or demonstrate objective evidence of impairment as of
reporting date.
*SGVFS187611*
- 78 -
The table below shows determination of ECL stage of the Company’s financial assets:
2023
Stage 1 Stage 2 Stage 3
Total 12-month ECL Lifetime ECL Lifetime ECL
Financial Assets at Amortized Cost
Cash and cash equivalents* = 6,177,559,127
P = 6,177,559,127
P =−
P =−
P
Receivables:
Trade:
Franchisees and customers 766,795,732 297,567,907 192,327,746 276,900,079
Related parties 8,404,206,771 2,236,698,688 6,167,508,083 −
Receivable from retirement fund 664,212,576 664,212,576 − ‒
Employee advances 367,007,648 367,007,648 − −
Employee car plan receivables 77,689,757 77,689,757 − −
Interest receivable 10,426,610 10,426,610 − −
Lease receivables 807,960,137 807,960,137 − −
Advances to related parties 3,287,741,204 3,287,741,204 − −
Refundable deposits*** 522,478,423 3,015,887 519,462,536 −
21,086,077,985 13,929,879,541 6,879,298,365 276,900,079
Financial Assets at FVTPL 30,588,040 30,588,040 − −
= 21,116,666,025
P = 13,960,467,581
P = 6,879,298,365
P = 276,900,079
P
*Excluding cash on hand amounting to =
P 81.5 million in 2023.
**Excluding receivables from SSS amounting to =
P21.3 million in 2023.
***Including current and noncurrent portion amounting to =
P3.0 million and =
P 519.5 million, respectively, in 2023.
2022
Stage 1 Stage 2 Stage 3
Total 12-month ECL Lifetime ECL Lifetime ECL
Financial Assets at Amortized Cost
Cash and cash equivalents* =5,782,844,199
P =5,782,844,199
P =−
P =−
P
Receivables:
Trade:
Franchisees and customers 1,492,543,014 663,461,934 566,777,021 262,304,059
Related parties 8,641,607,698 4,090,979,440 4,550,628,258 −
Receivable from retirement fund 419,015,441 419,015,441 − ‒
Employee advances 1,510,784,356 1,510,784,356 − −
Employee car plan receivables*** 33,693,027 33,693,027 − −
Interest receivable 14,737,476 14,737,476 − −
Others** 174,734 174,734 ‒ −
Lease receivables 759,597,187 759,597,187 − −
Advances to related parties 4,037,932,904 4,037,932,904 − −
Refundable deposits*** 504,889,706 504,889,706 − −
23,197,819,742 17,818,110,404 5,117,405,279 262,304,059
Financial Assets at FVTPL 25,708,040 25,708,040 − −
=23,223,524,782
P =17,843,818,444
P =5,117,405,279
P =262,304,059
P
*Excluding cash on hand amounting to =
P73.9 million in 2022.
**Excluding receivables from SSS amounting to =
P29.0 million in 2022.
***Including current and noncurrent portion amounting to =
P504.9 million and nil, respectively, in 2022.
Credit Risk Exposure and Concentration. The tables below show the maximum exposure to credit
risk of the Company as at December 31, without considering the effects of collaterals and other credit
risk mitigation techniques:
2023
Fair Value and
Financial Effect
of Collateral
Gross Maximum or Credit
Exposure Enhancement Net Exposure*
(a) (b) (a - b)
Financial Assets
Financial assets at amortized cost:
Cash and cash equivalents** = 6,177,559,127
P = 7,102,923
P = 6,170,456,204
P
Receivables:
Trade:
Franchisees and customers 766,795,732 ‒ 766,795,732
Related parties 8,404,206,771 2,863,402,382 5,540,804,389
Receivable from retirement fund 664,212,576 − 664,212,576
Employee advances 367,007,648 − 367,007,648
Employee car plan receivables 77,689,757 − 77,689,757
(Forward)
*SGVFS187611*
- 79 -
2023
Fair Value and
Financial Effect
of Collateral
Gross Maximum or Credit
Exposure Enhancement Net Exposure*
(a) (b) (a - b)
Interest receivable = 10,426,610
P =−
P = 10,426,610
P
Others*** − − −
Lease receivables 807,960,137 − 807,960,137
Advances to related parties 3,287,741,204 − 3,287,741,204
Refundable deposits**** 522,478,423 − 522,478,423
Financial assets at FVTPL 30,588,040 − 30,588,040
= 21,116,666,025
P = 2,870,505,305
P = 18,246,160,720
P
*Financial assets after taking into account insurance on bank deposits for cash and cash equivalents and payables to the same counterparty for receivables.
**Excluding cash on hand amounting to = P81.5 million in 2023.
***Excluding receivables from SSS amounting to = P 21.3 million in 2023.
****Included under “Other current assets” and “Other noncurrent assets” account in the statements of financial position.
2022
Fair Value and
Financial Effect
of Collateral
Gross Maximum or Credit
Exposure Enhancement Net Exposure*
(a) (b) (a - b)
Financial Assets
Financial assets at amortized cost:
Cash and cash equivalents** =5,782,844,199
P =6,157,823
P =5,776,686,376
P
Receivables:
Trade:
Franchisees and customers 1,492,543,014 ‒ 1,492,543,014
Related parties 8,641,607,698 6,194,736,758 2,446,870,940
Receivable from retirement fund 419,015,441 − 419,015,441
Employee advances 1,510,784,356 − 1,510,784,356
Employee car plan receivables 33,693,027 − 33,693,027
Interest receivable 14,737,476 − 14,737,476
Others*** 174,734 − 174,734
Lease receivables 759,597,187 − 759,597,187
Advances to related parties 4,037,932,904 − 4,037,932,904
Refundable deposits**** 504,889,706 − 504,889,706
Financial assets at FVTPL 25,708,040 − 25,708,040
=23,223,527,782
P =6,200,894,581
P =17,022,633,201
P
*Financial assets after taking into account insurance on bank deposits for cash and cash equivalents and payables to the same counterparty for receivables.
**Excluding cash on hand amounting to = P73.9 million in 2022.
***Excluding receivables from SSS amounting to = P 29.0 million in 2022.
****Included under “Other current assets” and “Other noncurrent assets” account in the statements of financial position.
Liquidity Risk
The Company’s exposure to liquidity risk refers to the risk that its financial liabilities are not serviced
on a timely manner and that its working capital requirements and planned capital expenditures are not
met. To manage this exposure and to ensure sufficient liquidity levels, the Company closely monitors
its cash flows to be able to finance its capital expenditures and to pay its obligations as and when they
fall due.
On a weekly basis, the JFC Group’s Cash and Banking Team monitors the Company’s collections,
expenditures and any excess/deficiency in the working capital requirements by preparing cash
position reports that present actual and projected cash flows for the subsequent week. Cash outflows
resulting from major expenditures are planned and properly monitored to ensure availability of funds,
i.e., pre-terminate short-term deposits if deemed necessary. In addition, the Company has available
credit lines with accredited banking institutions. The Company maintains a sufficient level of cash
and cash equivalents to finance the Company’s operations.
No changes were made in the objectives, policies or processes of the Company in 2023 and 2022.
*SGVFS187611*
- 80 -
The tables below summarize the maturity profile of the Company’s financial assets and liabilities as
at December 31, 2023 and 2022 based on undiscounted contractual payments:
2023
Due and Less than Over
Demandable 1 Year 1 to 5 Years 5 Years Total
Financial Assets
Financial assets at amortized cost:
Cash and cash equivalents = 2,599,255,825
P = 3,659,838,734
P =−
P =−
P P
= 6,259,094,559
Receivables:
Trade:
Franchisees and customers 252,949,925 513,845,807 − − 766,795,732
Related parties − 8,404,206,771 − − 8,404,206,771
Receivable from retirement fund − 664,212,576 − − 664,212,576
Employee advances ‒ 367,007,648 − − 367,007,648
Employee car plan receivables* − 81,242,175 − − 81,242,175
Interest receivable − 10,426,610 − − 10,426,610
Other receivables** − − − − −
Advances to related parties* − 3,287,741,204 − − 3,287,741,204
Lease receivables − 807,960,137 − − 807,960,137
Refundable deposits* 519,462,536 3,015,887 − − 522,478,423
Financial assets at FVTPL − 30,588,040 − − 30,588,040
3,371,668,286 17,830,085,589 − − 21,201,753,875
Financial Liabilities
Loans and borrowings, and other payables:
Trade payables and other current liabilities*** 118,627,964 10,692,153,297 − − 10,810,781,261
Due to related parties − − 7,314,327,225 − 7,314,327,225
Long-term debt − 2,963,392,786 2,899,607,113 − 5,862,999,899
Lease Liabilities* − 816,637,618 3,186,791,970 3,279,142,011 7,282,571,599
118,627,964 14,472,183,701 13,400,726,308 3,279,142,011 31,270,679,984
Net Financial Assets (Liabilities) = 3,253,040,322
P = 3,357,901,888 (P
P = 13,400,726,308) (P
= 3,279,142,011) (P
= 10,068,926,109)
*Gross of unamortized discount and including future interest payments.
**Excluding receivables from SSS amounting to = P21.3 million as at December 31, 2023.
***Excluding statutory obligations such as accrued local and other taxes, PHIC, SSS, HDMF and NHMFC payables and unearned revenue from gift
certificates amounting to =
P 20.8 million as at December 31, 2023.
2022
Due and Less than Over
Demandable 1 Year 1 to 5 Years 5 Years Total
Financial Assets
Financial assets at amortized cost:
Cash and cash equivalents =2,335,540,063
P P
=3,521,178,862 =−
P =−
P P
=5,856,718,925
Receivables:
Trade:
Franchisees and customers 829,081,080 663,461,934 − − 1,492,543,014
Related parties 4,550,628,258 4,090,979,440 − − 8,641,607,698
Receivable from retirement fund − 419,015,441 − − 419,015,441
Employee advances ‒ 1,510,784,356 − − 1,510,784,356
Interest receivable − 14,737,476 − − 14,737,476
Employee car plan receivables* − 33,693,027 − − 33,693,027
Other receivables** − 174,734 − − 174,734
Advances to related parties* − 4,037,932,904 − − 4,037,932,904
Refundable deposits* − 504,889,706 − − 504,889,706
Lease receivables − ‒ 759,597,187 − 759,597,187
Financial assets at FVTPL 25,710,415 − − 25,710,415 51,420,830
Total 7,740,959,816 14,796,847,880 759,597,187 25,710,415 23,323,115,298
Financial Liabilities
Loans and borrowings, and other payables:
Trade payables and other current liabilities*** 15,616,249 13,935,412,466 − − 13,951,028,715
Due to related parties − − 8,294,167,364 − 8,294,167,364
Long-term debt − 3,147,081,112 6,053,620,192 − 9,200,701,304
Lease Liabilities* ‒ 1,125,616,649 3,697,229,180 4,729,461,993 9,552,307,822
15,616,249 18,208,110,227 18,045,016,736 4,729,461,993 40,998,205,205
Net Financial Assets (Liabilities) =7,725,343,567 (P
P = 3,411,262,347) (P
= 17,285,419,549) (P
= 4,703,751,578) (P
= 17,675,089,907)
*Gross of unamortized discount and including future interest payments.
**Excluding receivables from SSS amounting to = P29.0 million as at December 31, 2022.
***Excluding statutory obligations such as accrued local and other taxes, PHIC, SSS, HDMF and NHMFC payables and unearned revenue from gift
certificates amounting to =
P 15.6 million as at December 31, 2022.
*SGVFS187611*
- 81 -
Price Risk
Price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate
because of changes in market prices (other than those arising from interest rate or foreign exchange
rate risk), whether those changes are caused by factors specific to the individual financial instrument
or contract, or by factors affecting all similar contracts or financial instruments traded in the market.
The Company’s price risk exposure relates to financial assets whose values will fluctuate as a result
of changes in market prices.
The Company’s price risk policy requires it to manage such risks by setting and monitoring objectives
and constraints on investments.
The Company is not exposed to significant equity price risk on its investment in quoted equity
securities consisting of investment in golf and club shares.
This analysis was performed for reasonably possible movements in the market index with all other
variables held constant. The correlation of variables will have a significant effect in determining the
ultimate impact on price risk, but to demonstrate the impact due to changes in variables, variables had
to be changed on an individual basis.
The Company generates cash flows from operations sufficient to finance its organic growth. It
declares cash dividends representing about 1/3 of its net income, a ratio that would still leave some
additional cash for future acquisitions. If needed, the Company would borrow money for acquisitions
of new businesses.
The Company’s policy is to limit its liabilities to stockholders’ equity ratio at 60:40.
As at December 31, 2023 and 2022, the Company’s ratio of liabilities to total equity and ratio of net
liabilities to total equity are as follows:
Debt Ratio
2023 2022
Total debt (a) P
=32,816,676,462 P =39,790,245,305
Total equity 78,512,353,373 72,152,839,956
Total debt and equity (b) P
=111,329,029,835 =
P111,943,085,261
*SGVFS187611*
- 82 -
2023 2022
Total debt P
=32,816,676,462 P=39,790,245,305
Less cash and cash equivalents 6,259,094,559 5,856,718,925
Net debt (a) 26,557,581,903 33,933,526,380
Total equity 78,512,353,373 72,152,839,956
Net debt and equity (b) P
=105,069,935,276 =
P106,086,366,336
2023 2022
Noncurrent portion of advances to related parties 2.58%-5.99% 2.58%-5.99%
Refundable deposits 1.00%-6.99% 1.00%-6.99%
Employee’ car plan receivables 0.73%-8.50% 0.73%-6.47%
Long-term debt 3.77%-6.35% 3.77%-6.35%
Investment Properties. The fair value of the investment properties is determined by independent
appraisers using the market data and cost approach, which considers the local market conditions, the
extent, character and utility of the property, sales and holding prices of similar parcels of land and the
highest and best use of the investment properties.
*SGVFS187611*
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The following tables provide the fair value measurement hierarchy of the Company’s assets and
liabilities. Quantitative fair value measurement hierarchy for assets and liabilities as at
December 31, 2023 and 2022:
2023 Fair Value Measurement Using
Quoted Significant Significant
Prices in Observable Unobservable
Active Markets Inputs Inputs
Date of Valuation Total (Level 1) (Level 2) (Level 3)
Assets measured at fair value
Financial assets at FVTPL (see Note 9) December 31, 2023 = 30,588,040
P =−
P = 30,588,040
P =–
P
Assets for which fair values are disclosed
Refundable deposits December 31, 2023 552,478,423 – – 552,478,423
Employee car plan receivables December 31, 2023 77,689,757 – – 77,689,757
Investment properties (see Note 13) December 31, 2023 153,240,000 – – 153,240,000
Noncurrent portion of advances to related parties December 31, 2023 1,912,696,804 – – 1,912,696,804
Liabilities for which fair values are disclosed
Long-term debt December 31, 2023 2,899,607,113 – – 2,899,607,113
There were no transfers from Level 2 fair value measurements in 2023 and 2022.
2023 2022
Net income in parent company financial statements P
=8,969,910,318 =P10,884,854,835
Effects of consolidation (203,795,249) (3,326,351,506)
Consolidated net income attributable to the equity
holders of the Company 8,766,115,069 7,558,503,329
Less: Dividends on preferred shares - net of tax 451,105,417 451,190,433
(a) Consolidated net income attributable to the equity
holders of the Company P
=8,315,009,652 =7,107,312,896
P
EPS:
Basic (a/b) P
=7.455 =6.400
P
Diluted (a/c) 7.444 6.382
*SGVFS187611*
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Potential common shares for stock options under the 13th,15th and 19th MSOP cycles in 2023 and 13th
to 15th MSOP cycles in 2022 were not included in the calculation of the diluted EPS because they are
anti-dilutive.
Dividend Declaration, Release of Appropriated and Appropriation of Retained Earnings, and Planned
Preferred Shares Offering
Appropriation of P
=23,400.0 million from the Company’s unappropriated retained earnings for
capital expenditures in 2024.
Plan to offer and issue in the Philippines an additional 5.0 million preferred shares with an
oversubscription option of up to 3.0 million preferred shares. The preferred shares will be sold at
a subscription price of =P1,000.00 per share, with an estimated issue size of P
=5.0 billion to up to
P
=8.0 billion, if the oversubscription option is fully exercised. These will be cumulative, non-
voting, non-participating, non-convertible, redeemable, peso-denominated perpetual preferred
shares.
*SGVFS187611*
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35. Notes to the Statements of Cash Flows
Changes in Liabilities and Equity Arising from Financing Activities
In 2023 and 2022, movements in the Company’s liabilities arising from financing activities follow:
2023
Amortization of Granted Stock
Dividends Interest Lease Pre-termination Debt Options to
January 1, Declared Expense Additions of Lease Issue Cost Employees and December 31,
2023 Cash flows (Note 20) (Note 24)* (Note 30) (Note 30) (Note 18) Subsidiaries** 2023
(in millions)
Dividends payable (Note 16) = 446.5
P (P
= 3,271.0) P
= 3,045.8 =–
P =–
P =–
P =–
P =–
P = 221.3
P
Interest payable (Note 16) 54.7 (384.0) – 382.5 ‒ ‒ – – 53.2
Lease liabilities (Note 30) 6,280.1 (1,139.8) ‒ 358.6 675.5 (76.5) – – 6,097.9
Long-term debt (Note 18) 8,875.0 (2,980.0) – – – – – – 5,895.0
Debt issue cost (Note 18) (48.6) – – – – – 16.6 – (32.0)
Common stock (Note 19) 1,131.2 1.1 – – – – – – 1,132.3
Additional paid-in capital 11,991.2 207.9 – – – – – 354.9 12,554.0
Total liabilities and equity on financing activities = 28,730.1
P (P
= 7,565.8) = 3,045.8
P = 741.1
P = 675.5
P (P
= 76.5) = 16.6
P = 354.9
P = 25,921.7
P
*Excluding interest expense from accretion of security deposits amounting to =
P0.03 million.
**Including deferred tax asset amounting to =
P1.1 million.
*SGVFS187611*
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2022
Pre- Amortization Granted Stock
Reversal of Dividends Interest Lease termination Rent of Debt Options to
January 1, Subscription Declared Expense Additions of Lease concessions Issue Cost Employees and December 31,
2022 Cash flows Receivable (Note 20) (Note 24)* (Note 30) (Note 30) (Note 30) (Note 18) Subsidiaries** 2022
(in millions)
Dividends payable (Note 16) P
=214.6 (P=2,804.3) P
=– P
=3,036.2 P
=– P
=– P
=– P
=– P
=– P
=– P
=446.5
Interest payable (Note 16) 40.2 (394.2) – – 489.1 ‒ ‒ ‒ – – 54.7
Lease liabilities (Note 30) 5,562.2 (1,083.6) – ‒ 365.4 1,540.9 (35.9) (68.9) – – 6,280.1
Long-term debt (Note 18) 12,130.00 (3,255.0) – – – – – – – – 8,875.0
Debt issue cost (Note 18) (70.30) – – – – – – – 21.7 – (48.6)
Common stock (Note 19) 1,124.3 8.9 (2.0) – – – – – – – 1,131.2
Subscription Receivable (17.2) – 17.2 ‒
Additional paid-in capital 10,230.9 1,589.0 (15.2) – – – – – – 186.4 11,991.2
Total liabilities and equity on financing activities P
=29,214.7 (P
=5,939.2) =–
P P
=3,036.2 P
=854.5 P
=1,540.9 (P
=35.9) (P
=68.9) P
=21.7 P
=186.4 P
=28,730.1
*Excluding interest expense from accretion of security deposits amounting to =
P0.03 million.
**Including deferred tax asset amounting to =
P1.6 million.
*SGVFS187611*
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Noncash Activities
In 2023, the principal noncash amount transactions under investing activities pertains to transfer of
buildings and buildings improvement to investment properties amounting to = P101.6 million
(see Notes 11 and 13) and to intangible assets amounting to =
P63.8 million (see Notes 11 and 12).
In 2022, the principal noncash transactions under investing activities pertains to land conveyed to
CentralHub with a total fair value of =
P1,524.4 million in exchange for an additional 13.24%
ownership interest (see Notes 10 and 11) and land with a total fair value of =
P2,401.6 million in
exchange for condominium units (see Notes 11 and 14).
36. Supplementary Tax Information Required Under Revenue Regulations No. 15-2010
The Bureau of Internal Revenue has issued Revenue Regulations No. 15-2010 which requires certain
tax information to be disclosed in the notes to the parent company financial statements. The
Company presented the required supplementary tax information as a separate schedule attached to its
annual income tax return.
*SGVFS187611*
SyCip Gorres Velayo & Co. Tel: (632) 8891 0307
6760 Ayala Avenue Fax: (632) 8819 0872
1226 Makati City ey.com/ph
Philippines
We have audited in accordance with Philippine Standards on Auditing, the parent company financial
statements of Jollibee Foods Corporation Doing business under the name and style of Jollibee
(the Company) as at December 31, 2023 and 2022, and have issued our report thereon dated
March 8, 2024. Our audits were made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The accompanying Schedule of Reconciliation of Retained Earnings
Available for Dividend Declaration as at December 31, 2023 is the responsibility of the management of
the Company. This schedule is presented for purposes of complying with Revised Securities Regulation
Code Rule 68, and is not part of the basic financial statements. This has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, fairly state, in all
material respects, the financial information required to be set forth therein in relation to the basic financial
statements taken as a whole.
Mariecris N. Barbaso
Partner
CPA Certificate No. 97101
Tax Identification No. 202-065-716
BOA/PRC Reg. No. 0001, August 25, 2021, valid until April 15, 2024
BIR Accreditation No. 08-001998-108-2023, September 12, 2023, valid until September 11, 2026
PTR No. 10079905, January 5, 2024, Makati City
March 8, 2024
*SGVFS187611*
A member firm of Ernst & Young Global Limited
JOLLIBEE FOODS CORPORATION
Doing business under the name and style of Jollibee
RECONCILIATION OF RETAINED EARNINGS AVAILABLE FOR DIVIDEND
DECLARATION
Adjustments:
Deferred tax assets - net, beginning (2,545,017,594)
Unrealized foreign exchange gain - net (except those
attributable to Cash and cash equivalents), beginning (436,063,108)
Accretion of interest on financial assets, beginning (95,230,163)
Unrealized gain on financial assets at fair value through
profit or loss (122,005,073)
Unappropriated Retained Earnings Available for Dividend
Declaration, beginning 25,801,656,519
Add (Less):
Dividend declarations during the year (3,045,799,915)
Treasury shares (180,511,491)
(3,226,311,406)
Unrealized gain
Less: Equity in net earnings of joint venture (138,470,811)
Interest income on accretion of financial instruments (9,505,599)
Unrealized gain on financial assets at fair value through
profit or loss (4,880,000)
(152,856,410)
Realized gain
Add: Realized foreign exchange gain - net of cash related 70,721,879
70,721,879
Other items
Net decrease in recognized deferred tax assets 123,384,459
Recognized deferred tax related to right-of-use assets
and lease liabilities 1,114,693,015
Unappropriated Retained Earnings Available for Dividend
Declaration, ending P
=32,701,198,374