Jollibee posts P10.2-B loss

JOLLIBEE Foods Corp. recorded a net loss of P10.2 billion in the second quarter of the year, reversing its P1.04-billion profit in the same period last year.

In a filing, the listed fast food giant said the loss included the P7-billion cost of its planned business transformation program.

Revenues decreased by 46.6 percent to P23.3 billion from P43.7 billion in the same period last year.

System-wide sales from April to June slid by 48.4 percent to P30.7 billion from P59.4 billion year-on-year as quarantine measures to stop the spread of the coronavirus disease 2019 (Covid-19) hampered operations.

According to Jollibee, 50 percent of its stores worldwide were temporarily closed at the beginning of the quarter, but by its end 88 percent were already open, with most relying on delivery and takeout as dine-in operations were limited.

It reported that the speed of recovery in samestore sales varied from country to country. In April, global same-store sales declined by 47 percent, with those in the Philippines down by 57 percent; China, 37 percent; North America, 25 percent; and Europe, Middle East and Asia, 45 percent.

In June, this decline was reduced to 39 percent, with the Philippines falling by 48 percent; China, 25 percent; North America, 9 percent; and Europe, Middle East and Asia, 22 percent.

“The business results were very bad, but in line with our forecasts. We are now focusing on rebuilding our business moving forward, along with implementing major cost improvement under our business transformation program,” Jollibee Chief Executive Officer Ernesto Tanmantiong said in the filing.

For the first half of 2020, Jollibee incurred a P11.96-billion loss, swinging from its P2.5billion net income last year.

System-wide sales slipped by 24.5 percent to P85.8 billion in the period from P113.7 billion, while revenues shed 25.3 percent to P62.8 billion from P84 billion.

Despite this, the fast food operator expects its financial performance to get better in the next two quarters as stores would have been reopened and sales would have likely begun building up.

It also forecasts positive earnings before interest, taxes, depreciation and amortization by the fourth quarter, with the Philippines, China, Vietnam, Europe, Middle East and other parts of Asia seen to generate net operating income by that time.

According to Tanmantiong, his company looks to open 338 stores worldwide this year.

“We expect sales and profit to increase significantly in 2021 to a point closer to the levels of 2019 and to grow at least at a historical growth rate of 15 percent annually by 2022,” he said.

Jollibee shares climbed by P4.80 or 3.8 percent to finish at P131 apiece on Wednesday.