- Jollibee Foods Corporation (JFC) announced they have incurred a net loss of over P12 billion due to the COVID-19 pandemic
- Aside from the loss of revenue, it has also spent on several expenses in response to the COVID-19 pandemic, including emergency funds for their employees and assistance to low income households
- The JFC is optimistic they can swing back to profitability by 2021
It sure looks like even the country’s largest food service company wasn’t spared from the financial impact of COVID-19.
Jollibee Foods Corporation (JFC) has reported that they have incurred a net loss of P11.96 billion for the first six months of 2020. The number was a huge drop from their net income of P2.50 billion during the same period last year.
When the Luzon-wide lockdown was declared in March, most businesses were shut down while people were instructed to stay at home to control the spread of COVID-19.
The company said the huge loss was due to the restrictions implemented to help curb the spread of COVID-19. They also included the additional expenses and cost they had in response to the COVID-19 pandemic, including emergency response fund for its employees and workers, assistance to frontliners, health workers and low income households.
“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,” said JFC Chief Executive Officer Ernesto Tanmantiong.
Jollibee chief financial officer Ysmael Baysa explained that the Business Transformation Program includes closure of 255 company-owned stores, changes in ownership of stores from company to franchisees, among others.
Despite it all, JFC remains optimistic it will swing back to profitability in 2021.
As of June, Jollibee operates 3,286 stores in the Philippines, including brands like Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, and Panda Express. It also operates 2,588 stores worldwide.