MANILA, Philippines – Fast-food conglomerate Jollibee Group is divesting from Vietnamese noodle chain Pho24 as part of a strategic move to sharpen its focus on core brands and enhance shareholder returns. 

The decision reflects the company’s commitment to solidifying its presence in key market segments, according to Richard Shin, Jollibee Group’s chief financial officer.

Shin highlighted the significance of portfolio consolidation in a press briefing on Wednesday, May 17, explaining that Jollibee Group, which boasts a portfolio of 13 proprietary brands, is streamlining its operations to concentrate on four key segments.

These segments are chicken, burgers, coffee and tea, and Chinese cuisine, all of which align closely with the company’s strategic direction.

Jollibee Group’s brands include Mang Inasal, Greenwich, Coffee Bean and Tea Leaf, Smashburger, Panda Express, Tim Ho Wan, Chowking, Rick Bayless Tortazo, Red Ribbon, Highlands Coffee, and Burger King. Overseas, Jollibee operates Hong Zhuang Yuan and Yonghe King. 

Pho24, in which Jollibee Group owns a less than 100% stake, does not fit within the established core segments, according to Shin. Given Pho24’s relative size and its divergence from the strategic focus, Jollibee Group opted to divest from the brand. 

“Because it doesn’t fit into our strategy and because it’s relatively a small brand for us, we decided we would get a better return for shareholders and the company if we were to focus really our energies in our top brands such as Jollibee,” Shin said.

He further emphasized the need to align capital investments, human resources, and marketing efforts with the growth trajectory of the strong brands within the Jollibee Group portfolio.

Jollibee reported a 10.6% decline in net income to P2.1 billion in the first quarter of 2023 due to one-time gains posted in the same period in 2022. Excluding the impact of the one-off gains, attributable net income grew by 331.9%.

System-wide sales rose by 31.1%, while operating profit jumped by 80.9%, with all brands posting strong double-digit growth. – Rappler.com