JFC racked up a loss of P10.17 billion in the the second quarter, its biggest loss on record. This compares to the P1.04 billion profit it reported in the same period last year and brings six-month loss to P11.96 billion as against a net income of P2.5 billion a year ago.
Consolidated revenues, which consist of sales by company-owned stores, fees from stores operated by franchisees and commissary sales to stores operated by franchisees and impact of new accounting rules, plunged by 46.6% to P23.3 billion in April to June and by 25.3% to P62.7 billion for the first six months.
Total system wide sales, a measure of all sales to consumers, both from company-owned and franchised stores, declined by 48.4% to P30.7 billion for the second quarter.
“The business results were very bad but in line with our forecasts. We are not focusing on rebuilding our business moving forward along with implementing major cost improvement under our business transformation program,” JFC president Ernesto Tanmantiong said in regulatory filing.
JFC temporarily closed half of its 5,974 company-owned and franchised stores globally due to the coronavirus outbreak.
As COVID-19 pandemic-related lockdowns and restrictions were gradually lifted in April, May and June, JFC reopened more stores.
“We expect sales and profit to increase significantly in 2021 to a point closer to the levels of 2019 and grow at least at historical growth rate of 15 percent annually by 2022,” Tanmantiong said.
JFC expects operations to be better in the next two quarters with the Philippines, China, Vietnam, Europe, Middle East and other parts of Asia projected to generatea net operating income assuming strict lockdown measures won’t be re-imposed.