JFC maintains Highlands Coffee IPO, US listing plans

JOLLIBEE FOODS CORP. (JFC) said inflation pressures are not affecting the planned initial public offering (IPO) of Highlands Coffee in Vietnam, while maintaining its target timeline for the planned US listing of its international business.

“On the Highlands, very simple — there is absolutely no correlation to inflation to our listing time,” Jollibee Group Chief Financial and Risk Officer and Jollibee Group International Chief Executive Officer (CEO) Richard Shin said during the Philippine Stock Exchange STAR event late Friday.

Although he did not provide additional details on the company’s planned international listing, Mr. Shin said the timetable remains unchanged.

“We are absolutely targeting the same date to IPO,” he said.

Earlier this year, JFC announced plans to spin off its international business and list it on a US stock exchange by late 2027 as part of its global expansion strategy.

The company said it has engaged international and local advisers for the planned spin-off and potential US listing. JFC International would include all businesses outside the Philippines, while the domestic business would remain listed on the Philippine Stock Exchange.

According to the company, the proposed transaction would create two independent entities with separate strategies and investment profiles.

Nearly two months ago, JFC said the board of Highlands Coffee was evaluating a standalone IPO in Vietnam targeted for completion by the first quarter of 2027.

The company said the proposed transaction remains subject to market conditions, due diligence, internal restructuring, and approvals from relevant regulatory and legal authorities.

In 2023, Mr. Shin said Highlands Coffee could eventually pursue a separate stock market listing, although he noted at the time that the IPO would proceed only under valuation and timing conditions deemed favorable to shareholders.

In 2016, JFC, through subsidiary JSF Investments Pte. Ltd., partnered with Viet Thai International Joint Stock Co. with plans to list SuperFoods on the Vietnam Stock Exchange by 2019. The planned listing did not proceed after JFC acquired The Coffee Bean & Tea Leaf for $350 million in 2019.

Separately, Mr. Shin said the company expects inflation to continue affecting inventory costs, although JFC believes the impact can be managed with relatively modest price adjustments.

“So, costs, we should expect our cost of inventory to be impacted by inflation — that’s a macro thing. We should expect that,” he said.

“But when we did the math and the calculation, we don’t need to tip the scale too far in terms of price increase to really be able to absorb that,” he added.

JFC earlier said it is reviewing some of its assumptions for 2026, including the pace of store openings and capital expenditures, amid increased near-term volatility in input costs linked to geopolitical developments.

Despite the review, the company said demand across its key markets remains stable and that it continues to monitor conditions as it updates forecasts.

JFC’s attributable net income for the first quarter fell 38.8% to P1.47 billion from P2.41 billion a year earlier due to lower operating profit and unfavorable below-the-line items.

Net income for the January-to-March period declined 43.6% to P1.41 billion from P2.5 billion, while operating income dropped 18.2% to P3.95 billion.

The company said profitability during the quarter was affected by an 11.7% increase in direct costs driven mainly by inflation in certain commodities and supply chain inputs, as well as recent geopolitical developments. — Alexandria Grace C. Magno