Good afternoon, everyone, and welcome to the full year 2022 Earnings Conference Call of Jollibee Foods Corporation. I'm Carissa Mangubat with the Regis Partners, and I'll be hosting this afternoon's session. We're quite fortunate to have with us this afternoon three speakers from Jollibee. We have Mr. Ernesto Tanmantiong, the President and Chief Executive Officer, Mr. Richard Shin, the Chief Financial Officer, and Mr. Jose Miñana, who is the Chief Sustainability and Public Affairs Officer. Before we begin, I'll turn over first to Cossette for some housekeeping before we move on to the formal presentation. Cossette, you may now proceed.
Thank you, Carissa. Again, thank you, Regis Partners, for hosting our earnings call, again. Hello, everyone. Good afternoon, good morning, and good evening to some. Thank you for joining the Fourth Quarter and Full Year 2022 Earnings Conference Call of Jollibee Foods Corporation. This is our agenda for today's call. We will start with our CEO's remarks, to be followed by the CFO's discussion of the fourth quarter and full year results for 2022. Our CSO will give an update on our sustainability agenda, which was launched publicly today together with the release of our sustainability report. Before we start, I would like to read this reminder. This earnings call may include forward-looking statements that are based on certain assumptions of management and are subject to risks and opportunities or unforeseen events.
Actual results could differ materially from those contemplated in the relevant forward-looking statement, and the company gives no assurance such forward-looking statements will prove to be correct or that such intentions will not change. All subsequent written and oral forward-looking statements attributable to the company or persons acting on behalf of the company are expressly qualified in their entirety by the above cautionary statements. Now, I would like to turn over the call to Mr. Tanmantiong, CEO of JFC. Sir, Ato.
Thanks, Cossette. Jolly afternoon, everyone. Jolly evening and jolly morning for depending on where you are. I'm happy to report that 2022 is a record year for JFC. I would say that it is the best year ever in JFC's history. Looking at the system-wide sales on the top portion, it grew by 40%, registering at PHP 296.8 billion. Revenue grew by 38% at PHP 212 billion, and operating income registered PHP 9.9 billion with a 58.5% growth. These are the 2022 top line and operating income, which are ahead of JFC's guidance for the year.
Knowing that China is in a severe lockdown in 2022, at the bottom note, you'll notice that if we exclude China, system-wide sales would have grown by 44%, revenue would have grown by 42%, and operating income would have registered PHP 11.3 billion or 77% growth over last year. These remarkable results are contributed by the following factors. One is the emergence of new business channel, which is the delivery. Later on we'll show you the slide on our channel mix. Second would be the revenge dine-in. While the airline industry is enjoying the revenge travel, we in the food service industry are enjoying the revenge dine-in. You will also see later on that our dine-in sales started to improve from pre-COVID level. Third would be the focus on operational excellence in our stores.
That means a stronger brand power, FSC, customer satisfaction index improvement in the menu architecture, as well as store experiences. We also have more effective digital solutions, especially in the area of app, self-ordering kiosks and web ordering. Our restructuring in 2020 also ended up with a leaner and stronger organization. All the initiatives that we employed during the COVID years has helped us achieve the remarkable results last year. We believe this will carry through to the years to come. Next slide, please. Can you go to the slide show? This one is the system, the slide on full year system-wide sales from 2018 to 2022. Despite the COVID years in 2020 and 2021, we registered a CAGR of 8.8%.
The dotted bar is the global system-wide sales, the red bar is the Philippines, and the gray bar is the international system-wide sales. If you compare 2022 versus pre-COVID, there's a growth of 22%. You will notice also in the earlier chart, which is shown here in the next slide of international expansion. You'll notice on the top portion, which is the international store network contribution, CAGR from 2018 to 2022 registered 12.4%. From 31% growing to 49% in 2022. For the international system-wide sales contribution, it grew from growth of 26% to 40% in 2022. As you can see, the international business contribution is getting closer to our medium-term goal of 50/50 Philippine international businesses target contribution.
You will also note that the store network opening will be more in the foreign markets than in the Philippines. This slide shows the system-wide sales and same-store sales growth by region versus last year. As you'll see in the slide, all markets, except China, posted robust top line growth. China, as you know, last year rate suffered a severe lockdown, which we experienced in the Philippines similarly in 2020. You will see that the Philippines in Q4 registered 44% growth in system-wide sales growth. This is the sum of the same-store sales growth of 39%, new store contribution of 4.5%.
In the internationals arena, we had system-wide sales growing at 31%, which is the sum of same-store sales growth of 6.8%, new stores contribution of 6.5%, new acquisitions of 5%, and impact of Forex on system-wide sales. Globally, Q4, we grew by 38.5%, which is the sum of same-store sales growth of 27%, new store contribution of 4%, new business acquisition of 2%, and Forex of 5.6%. Full year globally. Cos sette, can you point just to make sure that laser pointer. Okay. For the full year, 2022 versus last year, globally, we grew by 40% with the same-store sales growth of 27%, new store of 6%, 2% of business acquisition, and Forex of 5.2%.
Again, if you look at the bottom note, if we exclude China, again, due to COVID lockdown, globally, system-wide sales would have grown 44% full year from 40%. Same-store sales growth from 27%- 30%. This is the channel mix that I mentioned earlier. If you look at the first bar, which shows the pre-COVID level, our dine-in sales contributed 58% of our total sales, followed by takeaway/takeout of 28%, delivery 6%, and 7% in drive-thru. You'll notice the shift of business contributions from 2019 to 2022. The reason for that is on the upper right, that shows the channel system-wide sales growth percentage. Dine-in grew by 99% versus last year. It's still below pre-COVID level, but we are seeing the improvement since COVID 2020.
This year, we are looking at negative 10% in dine-in. The revenge in dine-in is really happening. Takeaway grew by 19% versus last year, 33% versus COVID, pre-COVID. The new business channel that I mentioned is the delivery. It continued to grow versus last year at 22%, even with the easing of COVID restrictions. If you compare pre-COVID, it's a jump of 387%. Drive-thru is flat versus last year, but there's a growth of 106% versus pre-COVID. Digital sales today registered at 20% of total sales for full year 2022, and it's a significant improvement from pre-pandemic level of just 6%. If you try to benchmark the digital sales in U.S. food industry, they're hovering around 50%.
We see a strong opportunity, growth opportunity in digital sales, and that's why we continue to invest heavily on our digital transformation. This is the quarterly system-wide sales from 2018- 2022. You'll see that in Q4, we registered the highest system-wide sales growth, quarterly system-wide sales growth, surpassing even pre-pandemic levels. If you look at the bottom, this included the acquisition that happened in 2018 for Smashburger, and in 2019 for CBTL, and in 2022 for Milksha. However, even if we exclude the acquisitions, our foreign international sales grew by 150% versus pre-COVID level. For global, more than 50% versus pre-COVID level. Here you'll see that the growth this year did not only come from acquisition, it also come from organic growth.
This is the slide of our new store opening. We opened 542 new stores last year, which is ahead of guidance at 8%. Philippines grew by 2%. Our international grew by 18%. As mentioned earlier, our growth in international business is faster than the Philippine growth with our medium-term goal of 50/50 sales ratio. Globally, we grew by 9.2%. Below is the ratio of company-owned versus franchise. Today, franchise ratio in the Philippines is at 67%, international at 48%, and globally at 57%. For the succeeding years, we expect more opening in franchise, as we believe franchising will help us grow faster and successfully in all markets.
We're looking at around 64% more franchise opening versus company-owned. Our focus for this year is the relentless focus on international business in line with our vision. We expect China to significantly improve this year with the opening up of COVID restriction. We expect the strong rebound of China similar to what we experienced in the Philippines last year. we already observed that our February sales top line has significantly improved with the opening of the economy. Likewise our sales top line improvement of Smashburger in Q4 last year continued to be strong in Q1 this year. we expect and hope that the trend will continue to go up in our Smashburger business in the U.S. as well as CBTL.
For Philippines, we continue to fortify our dominance in the Philippine business. While we expect headwinds of inflation to continue, but at a more controlled level. We are fortunate that we are able to manage the inflation because of our pricing power, and at the same time by working closely with our suppliers, strong collaboration to manage the cost so that we don't have to pass on everything to our customers. I think that's the last slide of my presentation, and I will pass this on to Richard, our CFO.
Thank you, Sir Ato, for giving us the overview of a very exciting and successful year 2022. Let me allow now to add some color to that, and I'll get a bit specific on the fourth quarter and what happened there, and also try to answer the question, is our fourth quarter reflection of what we will see in the first quarter of 2023 onwards. Let me now get on to the first slide. If we can start on the right-hand side, which is the full year view. Again, I just want to reiterate the previous comments mentioned by our CEO that we had a record year all across from system-wide sales all the way down to in fact Net Income Attributable to Equity Holders of the Parent of PHP 7.6 billion.
You can see the growth rates in the red box, where it's labeled 2021 change percentage. That's the good news. I'll be coming back to our core profit KPI here of operating income, PHP 9.9 billion. Now let me shift your eyes to the left-hand side, which is a description of what happened in the fourth quarter of last year. You can see top line growth did not translate into a profitable growth at the operating income level. You can see PHP 1.88 billion versus the PHP 2.46 billion. If you go further down all the way to Net Income Attributable to Equity, a delivery of PHP 320 million. Compared to same quarter a year ago, PHP 3.2 billion. I'll walk you through that.
Now, before I give you the details, let me again reiterate and reassure that these are not systematic issues in the fourth quarter that will be continued in the first quarter of this year. In fact, there were one-offs and timing difference of our brand-building initiatives, i.e. our AMP spend in the fourth quarter. Adjusting for those two items, we would have a normalized Q4 delivery of PHP 3.6 billion versus PHP 320 billion. Now let me walk you through that. If I may go to the next slide, Jose. Let's start with the operating income line first before we move down to the other income line. Operating income, as shown last year, quarter four, it was PHP 2.5 billion. This year was PHP 1.9 billion.
as expected, we had top-line growth. of course, we had profit attributable from that growth of PHP 1 billion coming into the system. we had these two items that I mentioned, provisions to curtail non-priority brands. what I mean by that simply is we have a large portfolio of brands, and we've made strategic decisions to exit some of the brands. the provision that we took to affect that cost of exit is reflected here. we took that into Q4. that's a one-time occurrence that will not happen in 2023. Secondly, we had an AMP investment that was significantly higher than the same quarter of last year, to the tune of 3.4% of system-wide sales spent as AMP in the Q4 last year versus 2.9%.
I have a proceeding slide to show you what that looks like. These two items is the 1.6 that I referred to in the previous slide. If I may go on to next. This slide is a slide around the timing of our AMP spend. What happened? We all know that in Q1, in the Philippines, there was a lockdown, therefore, our plans to spend all of our AMP, in particular our ad fees, was restricted. Therefore, we only spent 1.8% of SWS in the first quarter, You can see, compared to the prior year of 2021, this was significantly lower, as our run rate should be around 2.5%. We spent 2.4% that year.
You go to the second quarter, where things started to open up, and we started to catch up on our spend, normalized. We went to the third quarter, and we started to catch up, but again, still a little bit behind. We went into the fourth quarter. We did not want to pull back on our investment. As mentioned earlier by our CEO, our investment in our brands is what gives us pricing power, in particular in the Philippines, but elsewhere as well. It's very important, while we can, we continue to spend to build our brands for the future. 3.2% versus 2.9%. Now, remember, SWS is growing at a significant high percentage, so 3.2% on a much larger base equates to larger PHP spend as well.
On a full year basis, you can see we're right in line of where we should be, which is 2.5% of system-wide sales or 3.5% of revenue. That is what happened in Q4. Again, this is a timing and a catch-up of AMP spend. It is not a reflection of margins or other concerns in the business. Moving on to the next slide, I'll now take you down one step further to other income. As you remember, in Q2 and Q3, we reported quite a bit of other income gains from, for example, disposal of land. Here you can see in the fourth quarter, we actually had a lower other income versus Q4 of last year, 2021.
What happened here, there was a couple of significant items that contributed to the other income, but also you can see. Let me start with the middle bit, the lower reversals due to process improvement. Historically, we've been reversing out, over accruals. As our process gets better and as our systemization of these accruals gets better, we are starting to see lower reversals. That's a good thing. The provision for contingencies on the left, that again, as earlier mentioned by CEO, we are very serious about our international business. One of the international business that we're very serious about turning around is Smashburger. We had the luxury to take some restructuring provisions in the fourth quarter that will of course help the business in 2023 onwards.
Costs of those restructuring provisions, plus some other general provisions, are reflected in the fourth quarter number here. We also had the benefit of having a paper gain on our financial assets. These are the fixed income instruments that we hold. I think you're familiar with our strategy here to hold that cash and to deploy it as needed and necessary against capital investments going forward. This is U.S.-denominated fixed income, where we saw a bit of a gain in the fourth quarter. Again, net, I'm happy to see this other income portion coming down as we try to build our bottom line P&L through operating income. Next slide, Jose. This is just a view. It is a view of, again, comparing that PHP 300 million net income after tax attributable to shareholders, which I showed you earlier.
What would a normalized or adjusted net income after tax look like had these provisions one time and had the catch-up of A&P spend not occurred? The simple answer is simple math here. PHP 1.9 billion would have been our Q4 number had things been more timed on A&P and had we not had the luxury to take these provisions. Compared to two years prior to COVID, we didn't compare to last year, but we compared it to our peak years of 2018 and 2019. It would still be significantly higher than the fourth quarter deliveries of those two peak years of 2019 and 2018. I am confident to say our operational cost structure is getting stronger and therefore we're able to build off of that both in the Philippines and international. Moving on to the next slide.
I want to come back to the middle of the P&L. The drivers. This is gross profit margin in red. What that is our essentially our sales price, less the cost of food and packaging, less cost of running the stores, rent, labor, et cetera, and also less cost of our commissaries and our factories and our supply chain. It's the total cost of sales, not just the food cost of goods. If we're looking at our GPM, gross profit margin, if I can start with the full year, 17.4% is where we ended the year. Compared to the prior year, 2021, where we had a significantly lower inflation base, we were 40 basis points stronger. That is to say we absorbed inflation globally.
We were able to price out, but not all of it to our consumers. We produced operating efficiencies throughout our system from factory supply chain and into the stores, and we're able to not lose volume and we were able to grow top line and maintain not only the same level but an improved level of gross profit margin. In 2019, the pre-COVID period, we ran our business at 16.3% at the lower inflation index back in 2019. This continues to be our key focus. We believe we have the right process and people in place, and we'll continue to drive this part of the P&L with rigor. If you look at the fourth quarter on the left, similarly 18.3% for the fourth quarter versus 18.2% a year ago.
Earlier I mentioned to you there was nothing systematic or any concerns in terms of our business. It was just those two, a one-off and timing, that really affected the fourth quarter. This again illustrates that our business continues to have a very strong gross profit margin level. If I could move on to the next slide. Quite a bit of data here, simply put, this is the contribution of our Philippines business versus our international business. Let's start with the full year again. You can see Philippines at the revenue level was 61% contributed from the Philippines domestic market and 39% from international. Earlier, our CEO spoke of in the near to mid-term, we would like to get to a half and half mix. Cost of sales reflects that 60/40.
If you go down to the profits, you can see we had a slightly higher contribution from gross profits. Factored into this really is our challenge that we had in China. If you go down to our OpEx, you can see that international continues to get slightly more investments. Investments ahead of profit. Also to reflect the new age or the young age of some of our business that we acquired. They're still work in progress, but I can assure you that there is progress. We're seeing that coming through there. The bottom line tells the story. The opportunity for us really is on the international profitability. I'll address this a little bit further. Before I do that, next slide, please. Let me show you now the key metrics to our business.
Again, let's start with the gross profit, full year gross profit line. Philippines, we run our business at 18.7%, whereas in international we're running it at 15.5%. I believe that there's an opportunity for us to reverse this in the mid-term because on a like for like basis, price parity, disposable income basis, international business does have a higher gross profit opportunity for us. OpEx, again, you can see our index to invest ahead, in particular in our management team, in our skills, and building our team and structure around some of the key businesses that we've acquired. You can see then here operating income. At the moment, international is dragging our overall group OPM down, our operating margin down.
Let me show you now on the next slide. The impact of just 1 market, which is our Chinese business, which in 2022 due to COVID had an extreme drag. You can go right down to the bottom in 2022 column of that 2% international. Excluding the China business, we would have international contribution of 2% rather than -12%. That's a swing of 14%. Earlier, I mentioned the PHP 9.9 as a key operating income line. Our profit would have been PHP 11.4. That's to say China had a PHP 1.4 billion impact on our business in 2022.
I don't have the luxury to share with you our year-to-date Q1 results. I can tell you that we are seeing a significant difference in China's system-wide sales and rolling basis as we start to come out of the lockdown issues of COVID. Let's move on to the next slide. Free cash flow. Simply put, our income from working capital in the fourth quarter was the highest at PHP 9.4 billion. If you go down to net cash provided by operating activities, you can see it was lower than our Q2 and Q3, therefore dropping our free cash flow margin to 3.4% in Q4. Let me explain it by the note on the side. Our business is larger. We also had uncertainties of supply, securing supply, timing supply, in particular, those that were imported.
We did end the year two days higher on our DOI, Days of Inventory. We ended at 49 versus 47 same period last year. In addition to that, because we wanted to secure our supplies, and because we had to make sure that we work well with our strategic suppliers, we compromised with them to make sure our payment terms were slightly adjusted to be speedier. We did end up with eight days quicker to pay. That had a significant impact to our cash was measured at December 31st when these numbers were taken. Although we collected our receivables two days faster, from 17 days to 15 days, we noted that our receivables grew much larger due to a higher revenue base.
Adding all those three factors contributed to about PHP 6 billion of this swing. Again, I think as things become a bit more certain as we go forward, we're able to drive efficiencies in our DOI and in our DPO, and of course, we'll continue to collect receivables as quickly as we can. I believe Q4 is not representative, but rather it was a decision taken to secure our supplies. If I go to the next slide on balance sheet. Some of those numbers are here in the working capital section in the middle. Let me now start from the top. Our cash position improved to PHP 29.5 billion from PHP 24.8 billion a year ago. Our financial assets, which I mentioned earlier, we drew down on that for our investments.
Our bank loan position, although we paid PHP 9.3 billion in principal and in interest all on time without incurring any delays, we had a 10% FX impact, roughly about PHP 3.3 billion impact. That number is actually including an unfavorable FX impact of PHP 3.3 billion. If you go down to the bottom and looking at some of our key debt to EBITDA and debt to equity and Debt Service Coverage Ratio, we've improved. We're way below our covenant levels. Moving on to the next slide. This is a snapshot of our financial obligations. By that I mean debt as well as equity accounted preferred shares. Let's start with the top left box. By currency, our obligations are about 2/3 in U.S.- denominated, mainly the bonds that we have outstanding.
If you go to the bottom, the debt plus the equity portion here, we're about 63% equity accounted and 37% debt accounted. If you look at in terms of fixed coupon or interest rates, we remain at 86% fixed, which is to say that our blended or weighted rate of 4.3% is what we pay, which is much more favorable than the market cost of money these days. We'll continue to enjoy this tenure until the debt towers lapse in a few years time. Next slide, please, Jose. I'll just end with some guidance for 2023. Our targets are as follows. On a store network basis, we plan to increase around 5% like- for- like without acquisition.
That means roughly 550-600 gross, meaning new stores. Again, you saw the earlier ratios were roughly about 80-20 really in terms of international to Philippines. That along with our investment in digital and investment in other capital expenditures, we have a PHP 17 billion-PHP 19 billion investment target. System-wide sales we believe will be up on a more normalized but on a very strong 2022. We believe we can still grow the business at a pace of 15%-20%, that translates to somewhere around 7%-10% on a same-store or like-for-like basis. Our operating income growth, we are targeting to deliver 20%-25% growth versus 2022. With that, I will now hand the floor over to Sir Pepot.
Thank you, Richard. Good afternoon, good evening, good morning to some of you. I am very pleased to provide you with an update of JFC's most recent development on ESG. First and foremost, I'm so happy to share with you that, we just launched, I think today, our very first JFC sustainability agenda, detailed in our 2022 sustainability report, which is now in our corporate website. I will invite you to visit our website, and I will flash the link later on at the end of my presentation for you to appreciate the details. For today and in the next 15 minutes or so, I will provide an overview of the process, the rationale, and the directions that the company took for sustainability moving forward, as well as summarize the steps.
I'm sure you're interested about finding out in terms of ESG, what improvements have we made from the previous years versus 2022 and onwards. If you actually look at our journey through the years, JFC has had already several projects with respect to sustainability. Back in 86, we launched this operating standards which were very critical, defining food safety and quality, et cetera. This is what we call the Food Service Cleanliness and Condition Standards. Today, this FSC is not just standards, this is really a way of life for us. By 2004, on the environment side, we shifted to utilizing reusable wares for dine-in and effectively lowering the solid waste that would otherwise have been sent to the landfills.
One of our cornerstones is our Farmer Entrepreneur Program, which is brought by our Jollibee Group Foundation, which empowers also smallholder farmers to directly have access to the Jollibee Group and supply the Jollibee brands. Very, very critical in trying to reduce the middlemen. We've been very fortunate in the past years to always have received accolades and recognitions, especially for our organization, for our employees, from Gallup Exceptional Workplace Award, which we received in 2020. If I'm not mistaken, I think just a few days ago, we were also just informed that we got it for the second year for 2022. We also got Forbes list of World's Best Employers for three straight years.
In 2021, we were very, very humbled to also be recognized as Forbes World's Top Female-Friendly Companies, and the only Philippine-based company to do so. If you look at this whole story, there are a number of sustainability projects over the years, but we would recognize that, you know, they were quite fragmented. We needed a cohesive, overarching framework that would define our purpose, our goals and strategies, moving forward across all brands and markets that we operate in, creating our sustainability agenda. Let me try to describe to you the very rigorous process that we went into. Actually, just for the presentation purpose, we try to simplify this graphic so that we could share with you the process that we went through.
First, we asked ourselves internally and identified the most significant impacts that our business provides to the economy, to the society, and to environment in general. Secondly, externally, we also looked at the macro side and defined its most pressing needs. We intersected both to ensure that our materiality areas are those of criticality of the bigger picture that we belong to. We aligned this to the United Nations SDGs. This is basically how we came up with our umbrella statement, our purpose, the reason why we do what we do in sustainability. Through this process, we now try to break it down and came up with our three pillars. The first pillar of which would be food. We asked ourselves what is core to our business, and clearly, food is priority.
The impact that we wanted to deliver is to serve food people trust. From this pillar, we said on the second column, what are the focus areas that we have to look at to make sure that we are able to deliver on food that people trust? We said food safety, food quality, nutrition and transparency. We had to connect this also to how it contributes to the UN SDGs. The second pillar is that of people. Clearly, they help drive our business and very core to our business as well. The impact we wanted to deliver here is to help make people's lives better. Again, asking the question on how we do this, we look at the second column. Again, these are our focus areas. Employee welfare, farmers' livelihood, community support, and good governance.
Again, align it with the corresponding UN SDGs. We move into the third pillar, which is planet. Again, this is very core because these are where the, you know, we get the resources we need in our business. We said that the impact that we wanted to deliver here is to treat the planet responsibly. How do we do that? We look again at the second column. We look at our packaging and recycling, we look at waste reduction ways on how to do this, and also how to be more efficient in terms of energy and water. When we look at all of these things, the result of this whole process is the framework of our sustainability agenda, again, that we entitle now in total. Cossette, we can go to the next slide.
This whole thing now is what we call our theme, Joy for Tomorrow. That's our sustainability agenda theme. In the next slide, we'll show you basically our what we call the plan in the page. Plan- in- a- page here is that we have on the left side our purpose statement, on the three pillars on food, people, and planet. We have our 10 focus areas from food safety all the way down to energy and water efficiency. Under each of these focus areas, we will have goals. We have set goals here that we will be sharing with you a little later on. These goals, actually, if we put them together, contribute to about 10 of the 17 UN SDGs that you see on the right-most column.
This whole plan- in- a- page actually is our global framework that we will be using across all markets that we are, operating in. Let me now share with you our strategic intentions and where we are with respect to our focus areas. We start off with food. We have the next slide here that, you know, it's going to be quite busy on the next slide, Cossette. Again, here what we have here is food safety, food quality, nutrition, and transparencies. These are the focus areas that we said that we would work on in terms of delivering food that people trust. Under food is really addressing the S side of the ESG, on the social side. We said these are the goals that we want to, we want to obtain in terms of food safety.
First of all is really coming up with very rigorous audits and certifications on all our operating centers, our stores, our manufacturing facilities, our logistics centers to ensure that we are able to deliver food safety. The other one is also to do the same with all our vendors. The way we are doing it, how we are performing today is actually 100% of our stores and manufacturing facilities and logistics centers in 12 of our 17 brands are audited by our quality management group. We're very, very confident over here and doing really a great job here, and we're doing the same on 100% of our global vendors. When we look at food quality on the others, there are two here, basic goals here. The first one is how to responsibly source key ingredients.
That is our intention. The second one is also to ensure that we have customer satisfaction delivered at any place, any time, in any store, any brand, any market. To do this, what we are moving into here is for food qualities, we're going to come up and create our Responsible Sourcing Program. Again, just like our story, our journey of what we've done in the past, we've had a number of already items in terms of responsible sourcing, but we want to put it in one full holistic, cohesive program that will address all our categories in terms of poultry, beef, packaging, palm oil, coffee, dairy and agricultural products, and come up with this full Responsible Sourcing Program across all markets.
Second one, in terms of delivering cost-customer satisfaction, we have our NPS, which is our Net Promoter Score, and that is our 82 is the score that we have versus the industry benchmark of 50. It's pretty right on the spot over here. The third aspect of the social side on food would be nutrition and transparency. Number of words over here cut into four segments, the first one is really in terms of offering meal choices in line with our JFC Global Nutritional Criteria. The second is removing the artificial flavors and colors and reducing artificial preservatives and so on in that area. The third is the transparency.
The first two is about nutrition, and the second two goals are about transparency in terms of providing access to information for our customers with respect to allergens and nutrition. Second part of transparency has to do with our Responsible Marketing policy. Where are we in terms of this one? First is just like the Responsible Sourcing Program, we are now in the work in progress in coming up with our Global Nutritional Criteria. Again, as we are working on this, we're looking at items, meal choices about 750 calories or less and provide that choice to our customers, again, following the WHO dietary guidelines. In terms of our Jollibee stores across the world, our products are all free of trans fat and partially hydrogenated oils.
We will also be reviewing our artificial ingredients across all and what we will be removing. That's on the nutrition side. When we look at the transparency side, I mean, we are also providing to information on nutrition and allergen across all markets. As you can see, not all markets are treated right now the same. There are some that are full in terms of information, and some are not yet. That's the intent here, and that's our goal. Finally, to create also that Responsible Marketing policy. The second major pillar here is on people. When we look at people, let me try to explain this. We have the next slide will show that there are four columns here on the focus areas.
The first three has to do with the S of ESG, on employee welfare, farmers' livelihood, and community support. On employee welfare, there are basically three categories here. The first is to provide training and development. The other one is to improve on our employee engagement for all our employees and team players here. Finally, in terms of addressing the D&I or diversity and inclusivity. Where we are right now is, in terms of training and development, we have a 100% rating in terms of providing our individual development programs to all our employees. This is basically for the Philippines and U.S. markets so far, with almost about 10 hour training hours per employee. We could include China and Vietnam also in the foray.
The second is in terms of our Gallup scores, which we showed earlier, employee engagement, we're about 70% right now, this includes the Philippines, the U.S., and our EMEA regions. Our target, though, here is 75%. We just want to keep pushing to really be the best in class. Although at 70%, it's already way above the industry. Third is to, in as much as we have been doing a lot of things in terms of our D&I example, trainings on unconscious bias and inclusive leadership and so on. In terms of, you know, gender equality, we actually have almost 60% in our management positions are women. This is in the Philippines, China, Vietnam, and in the U.K., and in certain brands in the U.S.
Pretty good in terms of these ones. Even in China, we have employed members those with disabilities. However, what we want to do is to come up with a global D&I policy, which is something that we will be coming up with in 2023. Farmers' livelihood and community support are the other two areas which we feel we're very strong at. At the same time, farmers' livelihood right now is providing access to both training and empower them, our farmers, as well as providing them direct access again to our to our business. Where we are now in terms of farmers' livelihood, we have about 3,000 farmers trained right now, and about 15% of the vegetables that we use in our brands in the Philippines come from 700 smallholder farmers.
The intent is to increase this percentage even further up. In terms of community support, a lot of you know, here in the Philippines, we have the calamities and the typhoons. We're right there in the belt. You can add Vietnam and China into that. It is just, you know, expected from us to always provide food relief, especially we are in the food business, especially to the communities affected, and also provide educational scholarships to our underprivileged youth. Where we are, and this is what we have been doing in our various markets, providing meals to our communities affected especially, and these scholarship programs to our underprivileged youth.
Finally, in terms of our good governance, this is basically we've always been looking at creating policies that would guide us in terms of our behaviors and our decision-making processes to ensure that we respect human rights and exercise ethical practices across the organization. Right now we have our Code of Business Ethics that we have cascaded through various channels. You can provide, Cossette, yeah. I think this is one thing that we've learned as well, to really come up with policies that are more explicit. We have policies that obviously support anti-discrimination against child labor and forced labor and so on and so forth, but we have to be more explicit, which is what we are going to be doing also in this report.
Again, to align also to certain global organizations. The third pillar here in terms is planet. This one we have three focus areas, and this is under the E of ESG. For packaging and recycling, clearly what we have to do here is to improve our packaging sustainability across all our brands. Where we are right now, this is going to be a result of our Responsible Sourcing Program. We'll be able to, as a result of that, we will be able to define our goals and our programs with respect to packaging a lot more detailed. When we go to waste reduction and energy and water efficiency, we're looking at two areas here. Well, in waste reduction is food loss and food waste. We're looking at two groups here.
One is our manufacturing facilities. If you look at our manufacturing facilities right now, Cossette, if you could click. Thank you. Our manufacturing, actually, we have 16 manufacturing facilities across the globe, and this is about 70% of our manufacturing facilities already delivering on these double-digit improvements in terms of waste reduction, energy and water reduction. It's a matter of just including the other portion of the other 30%, which is our, the international facilities that we have. After the manufacturing facilities, the next thing that we have to work on. We've been doing a number of things there. It's really just to complete the baseline for our stores across the globe, across all brands for both waste reduction and energy and water efficiency.
You can just click the next one. That's where it is. Just a couple of slides left. In summary, I'll go to the next slide here, Cossette, please. Thank you. We have listed down the goals and initiatives vis-à-vis ESG. If you noticed, there were some peach or, you know, cream-colored bubbles and the gray ones. We could categorize them as those that are business as usual in terms of ESG and work in progress. One thing about our agenda is that we in JFC were really quite deliberate about our direction here with sustainability and how we intend to get there, as seen by these initiatives. It's very clear where we intend to go here. However, it is one thing to create the content, as I've mentioned.
The other thing that we have learned here is how to communicate it. We have learned in the past that our ratings were not where we wanted it to be because we weren't able to provide information or content of our programs as required by the rating agencies. That they should be publicly disclosed, or they should be aligned with certain global frameworks. The next slide shows here that's the one big change that we will be having here. Not only is our content more robust by having it now publicly disclosed in our corporate website and the reports that we have now are very much aligned with GRI and SASB, which is the frameworks that the rating agencies really follow.
Knowing that we have the content and we have now the communication channel, we're quite confident about our rating in terms of ESG, that it will be moving towards a direction that we feel that we deserve a lot more. I'd like to invite you. It's there, our website. Sorry, Cossette, if you could go back. Yeah, that's www.jollibeegroup.com/sustainability. That's where our latest sustainability report is. A lot has been said in the last 15 or so minutes, but in my last slide here, if there's only three things that you have to remember, it's this: We are here for the food, our people and our planet. That's my update for today. Thank you very much.
Okay. Thank you. I believe that concludes the formal presentations for this afternoon's full year 2022 earnings call of Jollibee Foods. We'd like to thank again our speakers for spending time with us to give us the updates. Mr. Tanmantiong, Mr. Shin and Mr. Miñana. Of course, Cossette and the rest of the IR team, always appreciate your time to be with us. Congratulations again on the results, and we look forward to seeing an even stronger performance for Jollibee in 2023. To everyone who's logged in, thank you for participating. That concludes today's session. You may now disconnect.
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