Cornelio B. Gonzales Jr.

BSHM-2A

Jollibee Foods Corporation

Financial Statement Analysis

Fast-food giant Jollibee Foods Corp. (JFC) returned to profitability in the fourth quarter of 2020,
ending three quarters of financial hemorrhage as its global restructuring program improved cash
flow amid a prolonged COVID-19 pandemic.

Due to losses in the first three quarters, JFC recorded a net loss of P11.49 billion for full year
2020 compared to a net profit of P7.3 billion in 2019. But JFC narrowed its losses from a peak of
P13.54 billion in the first nine months after chalking up a fourth quarter net profit of P2 billion.

The fourth quarter bottom line of P2 billion was 34.5-percent lower compared to the restated net
income for the fourth quarter of 2019.

JFC’s 2019 audited consolidated financial statements of JFC were restated to reflect additional
gains arising from the acquisition of gourmet coffee chain Coffee Bean & Tea Leaf (CBTL), as
finalized based on independent third party valuations.

Reported progress on reopening stores that had been closed temporarily due to the pandemic. As
of end-2020, 96 percent of the group’s worldwide outlets have resumed operations.

JFC Income Statement

2020 2020 2020 2019

Period Ending:
30/09 30/06 31/03 31/12
Total Revenue 29964.99 23331.45 39432.79 52420.27

Cost of Revenue, Total 26660.01 22881.07 35395.8 42649.78

Gross Profit 3304.99 450.38 4036.99 9770.49
Total Operating Expenses 33312.76 28599.75 40763.51 49982.29
Selling/General/Admin. Expenses,
6153.04 5356.42 5214.69 7175.56
Total
Research & Development - - - -
Depreciation / Amortization 157.43 147.1 151.8 156.95
Interest Expense (Income) - Net
- - - -
Operating
Unusual Expense (Income) 342.28 215.16 1.23 -
Other Operating Expenses, Total - - - -
Operating Income -3347.77 -5268.3 -1330.72 2437.98
 Interest Income (Expense), Net Non-
-2394.3 -513.48 -721.54 -2258.44
Operating
Gain (Loss) on Sale of Assets - - - -
Other, Net 2647.42 -5573.15 234.28 3149.97
Net Income Before Taxes -3094.65 -11354.93 -1817.99 3329.5
Provision for Income Taxes -1212.51 -857.91 255.53 1339.55
Net Income After Taxes -1882.14 -10497.03 -2073.51 1989.96
Minority Interest 301.79 325.8 281.3 -88.3
Equity In Affiliates - - - -
U.S GAAP Adjustment - - - -
Net Income Before Extraordinary
-1580.35 -10171.22 -1792.22 1901.65
Items
Total Extraordinary Items - - - -
Net Income -1580.35 -10171.22 -1792.22 1901.65
Total Adjustments to Net Income - - - -
Income Available to Common
-1580.35 -10171.22 -1792.22 1901.65
Excluding Extraordinary Items
Dilution Adjustment - - - -
Diluted Net Income -1580.35 -10171.22 -1792.22 1901.65
Diluted Weighted Average Shares 1105.14 1168.55 1094.17 1103.32
Diluted EPS Excluding
-1.43 -8.7 -1.64 1.72
Extraordinary Items
DPS - Common Stock Primary Issue - - - 0.62
Diluted Normalized EPS -1.23 -8.58 -1.64 1.72
* In Millions of PHP (except for per share items)

JFC Balance Sheet

2020 2020 2020 2019

Period Ending:
30/09 30/06 31/03 31/12
Total Current Assets 78319.62 81400.51 50078.85 45619.4
Cash and Short Term Investments 57136.11 59324.92 27854.03 23022.02
Cash 20028.23 57913.96 26470.92 20892.02
Cash & Equivalents - - - -
Short Term Investments 37107.88 1410.96 1383.11 2130
Total Receivables, Net 5781.25 5177.51 4475.4 5906.29
Accounts Receivables - Trade, Net 4488.2 4329.8 3916.29 5369.67
Total Inventory 8651.3 10055.4 11039.29 9966.08
 Prepaid Expenses 4497.22 4384.91 4455.33 4435.58
Other Current Assets, Total 2253.74 2457.78 2254.8 2289.43
Total Assets 213235.84 219505.93 190144.57 187276.01
Property/Plant/Equipment, Total - Net 68145.75 71355.01 73606.59 75499.54
Property/Plant/Equipment, Total -
105985.66 108809.01 114052.16 110623.04
Gross
Accumulated Depreciation, Total -37839.91 -37454 -40445.57 -35123.5
Goodwill, Net 14062.4 14256.84 14469.86 14497.16
Intangibles, Net 35711.05 35748.71 35789.09 35791.08
Long Term Investments 6471.84 7736.83 7567.13 7443.03
Note Receivable - Long Term 329.67 432.36 485.15 479.63
Other Long Term Assets, Total 10195.5 8575.67 8147.9 7946.16
Other Assets, Total - - - -
Total Current Liabilities 56606.41 56964 44035.52 67679.83
Accounts Payable 9998.63 11063.71 13232.2 14576.45
Payable/Accrued - - - -
Accrued Expenses 13832.79 12834.23 11847.54 14947.36
Notes Payable/Short Term Debt 15468.7 12175.52 3446.24 22180.32
Current Port. of LT Debt/Capital
9102.01 10058.63 9990.79 10452.73
Leases
Other Current liabilities, Total 8204.27 10831.92 5518.75 5522.96
Total Liabilities 145167.35 148842.82 109196.16 134675.96
Total Long Term Debt 82018.75 85269.27 57838.91 59450.4
Long Term Debt 44877.54 47357.73 18247.26 19179.75
Capital Lease Obligations 37141.21 37911.54 39591.64 40270.65
Deferred Income Tax 4176.48 4145.44 4721.62 4759.23
Minority Interest -1219.01 -934.2 -698.01 -318.17
Other Liabilities, Total 3584.72 3398.3 3298.13 3104.67
Total Equity 68068.49 70663.11 80948.41 52600.05
Redeemable Preferred Stock, Total - - - -
Preferred Stock - Non Redeemable,
- - - -
Net
Common Stock, Total 1104.96 1104.96 1094.44 1092.97
Additional Paid-In Capital 10257.26 10184.22 9019.64 8797.36
Retained Earnings (Accumulated
27218.61 29376.65 40228.4 42116.39
Deficit)
Treasury Stock - Common -180.51 -180.51 -180.51 -180.51
ESOP Debt Guarantee - - - -
 Unrealized Gain (Loss) - - - -
Other Equity, Total 29668.17 30177.8 30786.44 773.84
Total Liabilities & Shareholders'
213235.84 219505.93 190144.57 187276.01
Equity
Total Common Shares Outstanding 1107.7 1107.7 1107.18 1107.18
Total Preferred Shares Outstanding - - - -
* In Millions of PHP (except for per share items)

JFC Cash Flow Statement

2020 2020 2020 2019

Period Ending:
30/09 30/06 31/03 31/12
Period Length: 9 Months 6 Months 3 Months 12 Months
Net Income/Starting Line -16267.57 -13172.92 -1817.99 9483.56
Cash From Operating Activities -5169 -5166.32 -2157.93 19895.04
Depreciation/Depletion 10567.94 7201.73 3336.96 13344.54
Amortization 108.5 72.19 37.13 123.27
Deferred Taxes - - - -
Non-Cash Items 8671.81 8050.68 840.92 -228.72
Cash Receipts - - - -
Cash Payments - - - -
Cash Taxes Paid 1197.27 914.09 517.41 3127.22
Cash Interest Paid 831.9 462.81 284.27 1434.9
Changes in Working Capital -8249.69 -7318 -4554.94 -2827.61
Cash From Investing Activities -39414.69 -2381.08 -1487.1 -28885.26
Capital Expenditures -4054.18 -2815.16 -1823.84 -10041.91
Other Investing Cash Flow Items,
-35360.5 434.08 336.75 -18843.34
Total
Cash From Financing Activities 43862.33 44585.58 9231.71 6718.78
Financing Cash Flow Items 58533.65 59670.33 30150.79 -1404.47
Total Cash Dividends Paid -686.91 -684.9 -8.79 -2807.77
Issuance (Retirement) of Stock, Net 1263.22 1263.22 155.94 585.46
Issuance (Retirement) of Debt, Net -15247.62 -15663.07 -21066.24 10345.56
Foreign Exchange Effects -142.43 -16.25 -7.79 -122.46
Net Change in Cash -863.79 37021.93 5578.9 -2393.89
Beginning Cash Balance - - - -
Ending Cash Balance - - - -
Free Cash Flow - - - -
 Free Cash Flow Growth - - - -
Free Cash Flow Yield - - - -
* In Millions of PHP (except for per share items)

JFC Ratios

Name Company Industry

   
P/E Ratio TTM - 47.66
Price to Sales TTM 1.38 2.43
Price to Cash Flow MRQ 28.44 35.79
Price to Free Cash Flow TTM - 26.89
Price to Book MRQ 2.94 7.61
Price to Tangible Book MRQ 10.95 10.92
   
 
Gross margin TTM 12.1% 18.86%
Gross Margin 5YA 17.72% 18.6%
Operating margin TTM -5.17% 5.69%
Operating margin 5YA 5.13% 6.32%
Pretax margin TTM -8.91% 6.54%
Pretax margin 5YA 6.1% 6.82%
Net Profit margin TTM -8.59% 5.03%
Net Profit margin 5YA 4.59% 5.22%
   
Revenue/Share TTM 129.85 86.29
Basic EPS ANN 5.89 4.18
Diluted EPS ANN 5.82 4.1
Book Value/Share MRQ 61.45 26.99
Tangible Book Value/Share MRQ 16.52 18.68
Cash/Share MRQ 51.58 11.19
Cash Flow/Share TTM 6.45 7.29
   
 
Return on Equity TTM -19.39% 16.48%
Return on Equity 5YA 16.98% 18.07%
Return on Assets TTM -7.04% 8.2%
 Name Company Industry
Return on Assets 5YA 6.35% 8.93%
Return on Investment TTM -10.4% 12.7%
Return on Investment 5YA 9.35% 14.22%
   
EPS(MRQ) vs Qtr. 1 Yr. Ago MRQ -194.51% 21.8%
EPS(TTM) vs TTM 1 Yr. Ago TTM -282.34% 492.97%
5 Year EPS Growth 5YA 3.27% 10.54%
Sales (MRQ) vs Qtr. 1 Yr. Ago MRQ -30.6% 13.25%
Sales (TTM) vs TTM 1 Yr. Ago TTM -16.36% 18.13%
5 Year Sales Growth 5YA 14.65% 16.62%
5 Year Capital Spending Growth 5YA 13.36% 19%
   
Quick Ratio MRQ 1.23 1
Current Ratio MRQ 1.38 1.24
LT Debt to Equity MRQ 120.49% 27.85%
Total Debt to Equity MRQ 156.59% 35.6%
Efficiency    
Asset Turnover TTM 0.82 1.63
Inventory Turnover TTM 14 14.55
Revenue/Employee TTM 8.70M 18.54M
Net Income/Employee TTM -746.72K 935.52K
Receivable Turnover TTM 33.7 20.45
   
Dividend Yield ANN 1.09% 0.7%
Dividend Yield 5 Year Avg. 5YA 0.98% 0.83%
Dividend Growth Rate ANN 25.36% 24.17%
Payout Ratio TTM - -
TTM = Trailing Twelve Months  5YA = 5-Year Average  MRQ = Most Recent Quarter