Bilyonaryo Tony Tan Caktiong’s Jollibee has given up on collecting on P1.237 billion loans it extended to its loss-making poultry joint venture with American food giant, Cargill.
Jollibee has instead decided to convert the loans it advanced to Cargill Joy Poultry Meats Production, Inc. (C-Joy) in 2019 into a controlling interest in one of its biggest suppliers.
The conversion was approved in May 2020 and implemented four months later.
C-Joy suffered a comprehensive loss of P1.29 billion in the first nine months of 2020 despite a nine percent growth in revenues to P3.45 billion from the year-ago level.
Jollibee said the red ink in the first three quarters include the unrecognized equity share in net losses amounting to P967.3 million as of end 2019.
As of 2019, C-Joy has amassed P4 billion in losses since opening the country’s biggest poultry processing plant in Batangas with a capacity of 45-million dressed chickens a year.
Jollibee lost P13.54 billion in the first three quarters this year, a sharp reversal from its P4.18 billion profit a year ago, largely due to the pandemic and aggravated by its investments in losing businesses like Coffee Bean Tea and Leaf and Smashburger.