Jollibee Foods Corporation incurs US$207m net loss in Q2
It expects financial performance to get progressively better in the next two quarters.
Philippine fast food conglomerate Jollibee Foods Corporation (JFC) fell deeper in the red as its businesses across the globe felt the pains of the COVID-19 pandemic and the consequent lockdown measures.
In a disclosure to the local stock exchange, JFC incurred a second quarter attributable net loss of PHP 10.17 billion (approx. US$207 million), nearly ten times the PHP 1.8 billion loss recorded the prior quarter.
The company profited PHP 1.04 billion in Q2 last year.
“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,” JFC president Ernesto Tanmantiong said.
“We expect sales and profit to increase significantly in 2021 to a point closer to the levels of 2019 and grow at least at (a) historical growth rate of 15 percent annually by 2022.”
JFC said it expects its financial performance to get progressively better in the next two quarters as more stores would have reopened, also anticipating its cash flow to turn positive by the fourth quarter of 2020, with the Philippines, China, Vietnam, Europe, Middle East and other parts of Asia projected to generated net operating income.
This assumes, however, that government restrictions related to COVID-19 control will not be re-imposed.
System-wide sales plunged by 48.4% to PHP 30.58 billion in the second quarter. For the six-month period, sales went down by 24.5% to PHP 85.83 billion.
Half of JFC’s stores worldwide were temporarily closed at the beginning of Q2. By end-June, 88% of the stores had reopened, with most relying heavily on delivery and take-out businesses whilst dine-in operations were either closed or had low levels of sales volume.
Second quarter revenues dropped 46.6% year-on-year to PHP 23.33 billion whilst six-month revenues tumbled by 25.3% to PHP 62.76 billion.
“We expect sales and profit to improve over the next few months. Our business-building effort includes introducing exciting new products, launching new marketing campaigns, opening cloud kitchens, introducing improvement in our delivery systems and opening new stores at selected locations particularly in North America, Vietnam, Malaysia and China,” Tanmantiong said.
