Highlands Coffee is reporting one of its strongest performances to date in 2025, with record EBITDA and robust store-level sales, underscoring the brand’s resilience even as Vietnam’s F&B market undergoes intense consolidation.
According to the Q3 2025 financial report of Jollibee Foods Corporation (JFC) — the parent company of Highlands Coffee — Vietnam’s largest coffee chain continues to break new profitability records. The brand posted EBITDA of PHP 666 million (approximately VND 297 billion) in the third quarter, the highest level in two years and up 17.1% year-on-year. This marks another positive milestone since Q3 2023, when JFC first began disclosing Highlands Coffee’s standalone performance.
Strong Momentum Over the First Nine Months of 2025
For the first nine months of the year, Highlands Coffee recorded EBITDA of PHP 1.909 billion (around VND 852 billion), representing a 9.5% increase year-on-year. The chain contributed nearly 29% of the EBITDA generated by JFC’s coffee and tea segment and 6.1% of total group EBITDA.
The key driver behind this record performance is store-level sales growth. Same-store sales (SSSG) surged 17.2%, far outpacing Vietnam’s F&B market, which grew only modestly during the first half of the year amid slow consumer recovery. These results show that Highlands Coffee continues to retain a loyal customer base while successfully attracting new consumers despite fierce competition and market shakeouts.
Rapid Network Expansion Across Vietnam
Alongside revenue growth, Highlands Coffee is scaling its store footprint. As of September 2025, the chain operated 928 locations nationwide, including both company-owned and franchised stores. Over the first nine months, Highlands opened 109 new stores while closing 31 underperforming outlets as part of its network optimization strategy.
Jollibee Group Expands Aggressively Worldwide
At the group level, Jollibee continues its rapid global expansion. During the first nine months of 2025, JFC opened 754 new stores, with only 129 located in the Philippines. The remaining 625 stores were launched in international markets — including 76 in China, 30 across EMEA, 8 in North America, and 8 new Tim Ho Wan restaurants.
Within the coffee and tea segment, Compose Coffee was the fastest-growing brand with 296 new stores, followed by Highlands Coffee (109), The Coffee Bean & Tea Leaf (73), and Milksha (25). Alongside expansion, the group also restructured its network by shutting down 274 stores during the quarter.
IPO Plans Back on Track
After years of delays, Highlands Coffee has revived its long-awaited IPO plan. In June 2025, CFO Tim Seltzer confirmed that the company intends to launch its initial public offering within the next 18–24 months. As part of the preparation process, Highlands is working with major investment banks including UBS and Jefferies.
Regarding the listing venue, Highlands prioritizes the Vietnam stock exchange, emphasizing the importance of honoring its brand origins, though it has previously evaluated international markets such as Singapore, Hong Kong, Abu Dhabi, and the United States. JFC had originally planned to list Highlands in 2016, but the plan was postponed due to the pandemic.
Valuation and Long-Term Strategy
Highlands Coffee was previously valued at around US$800 million, according to media reports. The company’s leadership notes that the IPO is not only a means of raising capital but also a strategic tool to support long-term growth — including investments in store expansion, talent development, technology, and supply chain modernization.
However, executives acknowledge a key challenge: sustaining a strong valuation post-IPO, particularly over a 5–10-year horizon, in an increasingly competitive coffee market.
