Business

Jollibee lost P1B a month in 2020, shuts down 486 stores

Fastfood giant Jollibee Foods Corp. reported a net loss of P11.51 billion last year compared to the P6.4 billion profit a year before after it was forced to close stores due to the Covid-19 pandemic.

Systemwide sales declined by 27.8 percent to P175.97 billion while revenues dropped by 27.9 percent to P129.48 billion.

From an operating income of P6.48 billion, JFC incurred an operating loss of P5.92 billion as it set aside P7 billion for the rationalization of its businesses, which resulted in the permanent closure of 262 stores.

Last year, the fastfood giant shut down a total of 486 stores and four commissaries as part of cost-cutting measures to survive the pandemic. It likewise slashed manpower to reduce expenses and streamline operations.

From a total of 5,981 branches worldwide as of February last year, the JFC Group’s store network has been whittled down to 5,824 at the end of December.

In the fourth quarter alone, however, JFC reported a net income of P2.05 billion after incurring three consecutive quarters of losses. This represented a 9.8 percent drop in its earnings year on year.

“All of our regions generated recurring profit in the fourth quarter, led by the Philippines.We have significantly improved the Smashburger and The Coffee Bean & Tea Leaf businesses that they are now in a reasonable position to start generating profit in 2021,” said JFC chief executive office Ernesto Tanmantiong.

Tanmantiong is hopeful the company can sustain its positive performance as the world gradually returns to normalcy,aided by the introduction of new vaccines.

For this year, JFC plans to open over 400 new stores worldwide, mostly in North America, Vietnam and China.

“We aim for very strong sales and profit recovery in 2021 versus 2020. In 2021 and the years ahead, JFC’s sales and profit growth will be driven by its international business.We believe that out of this pandemic, we will emerge as a stronger business and organization,” Tanmantiong said.

READ: Tony Tan Caktiong, brother Ernesto boost personal stakes in Jollibee in 2020 when food giant’s shares tanked

READ: Jollibee plans 100 PHO24 stores in PH

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