Jollibee Foods Corp. (JFC) is reassessing its expansion and spending plans after first-quarter net income plunged nearly 39 percent, as surging input costs eroded margins despite resilient consumer demand and sustained double-digit sales growth.

The listed food service giant reported Tuesday that net income attributable to equity holders of the parent fell 38.8 percent to P1.47 billion in the January-to-March period, while operating income declined 18.2 percent to P3.95 billion as higher commodity and supply chain costs weighed on profitability.

Pacing of store openings, profitability expectations review

Following the weaker earnings performance, JFC said it is reviewing “the pacing of store openings, planned capital expenditures, and profitability expectations” for the rest of the year, while rolling out mitigation measures that include selective price increases, sourcing initiatives, and tighter cost management.

“First-quarter profitability was impacted by temporary cost pressures. Underlying demand across the business remained healthy. We view these headwinds as manageable, supported by disciplined cost controls, ongoing productivity initiatives, and targeted margin recovery actions across our brands and markets,” said Richard Shin, JFC chief financial and risk officer and chief executive officer of Jollibee Group International Business.

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