Jollibee reports net loss of P2.07 billion in Q1 2020 due to coronavirus
MANILA, Philippines – With no dine-in customers during the coronavirus lockdown, Jollibee Foods Corporation reported a net loss of P2.07 billion in the 1st quarter of 2020, representing a 253% plunge.
Revenues fell by 2.3% to P39.4 billion from the P40.3 billion recorded a year ago. Meanwhile, retail sales grew by 1.6%.
In January or before the coronavirus pandemic, Jollibee's system-wide sales grew by 9.9%.
The company started to feel the pinch in February, when sales growth slowed down by 32.5% as lockdowns and restrictions were imposed in China, where some of Jollibee's other brands are located.
As of March, 69% of Jollibee stores are closed in the Philippines.
"It will incur even higher losses in the 2nd quarter when the full impact of the lockdowns on the business will be felt. We expect the business to start recovering in the 3rd and 4th quarters, but we assume that the recovery will be slow," said Jollibee chief financial officer Ysmael Baysa.
To deal with the pandemic, Jollibee allotted P7 billion for changing its global business structure, some of which include rationalization of existing stores and supply chain facilities.
The amount would also be used to improve the company's mobile applications and to establish "cloud kitchens" or delivery outlets with no dine-in facility located in low rent sites. (LOOK: Jollibee offers ready-to-cook food for a limited time only)
Jollibee will also slash its planned capital expenditures in 2020 by 63%, from P14.2 billion to P5.2 billion. It will still open new stores, but on a "very selective basis."
As of April, Jollibee has 3,317 restaurants in the Philippines and 2,628 stores abroad.
While the pandemic battered the company, Jollibee gave its 90,000 employees their salary and 13th month pay in advance to help them cope with the crisis. (READ: Employees thank Jollibee for advanced salary, 13th month pay)
Even before the pandemic, Jollibee had been struggling with its profits, as it acquired several companies. – Rappler.com