Jollibee Foods Corporation posted a net loss of P11.5 billion in 2020 due to the coronavirus pandemic, but showed signs of recovery in the 4th quarter, thanks to its expansion abroad where the coronavirus is contained.

After posting losses for the first 3 quarters of 2020, Jollibee was able to swing to profit in the 4th quarter, posting P2.04 billion in net income. However, this is still lower by 9.8% compared to the same period in 2019.

Jollibee said it continued to make progress on reopening stores that had been closed temporarily.

As of December 31, 96% of the group’s outlets worldwide were already open.

Jollibee noted that its businesses in the Philippines, China, North America, Europe, Middle East, Africa, and other parts of Asia posted profits in the 4th quarter and helped temper losses.

Revenues for the entire 2020 amounted to P129.48 billion, 27.9% lower compared to 2019.

Closures, cost cutting

Jollibee was able to improve its balance sheet by undergoing a business transformation program, where it shut down some 486 stores worldwide. This move, however, led to job losses.

Stores that remained open significantly reduced headcount and expenses, resulting in savings amounting to P2.6 billion.

The company also delayed projects and held off spending some P8 billion in capital expenditures.

“Our strong profit recovery shows our organization’s capability to execute complex and massive undertaking in a very short time like the business transformation. It was a very difficult and painful program but the right thing to do for the long-term good of the business and the organization,” said Ernesto Tanmantiong, Jollibee chief executive officer.

“We look forward to sustained recovery of the business as the world gradually returns to normalcy, aided by the introduction of new vaccines.”

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Openings

Jollibee has a positive outlook for 2021, as it plans to spend P12.2 billion, 22% higher than actual spending in 2019, to fund the opening of some 450 stores.

Most of these new stores will be outside of the Philippines, particularly in North America, Vietnam, and China.

In 2020, a total of 338 stores opened amid the pandemic – 81 in the Philippines and 257 abroad. It was the first time in the company’s history that more stores opened abroad than in the Philippines. (READ: Jollibee opens 48th store in Middle East)

As of December 2020, Jollibee operates 3,217 restaurants, including its other brands like Chowking, Greenwich, Red Ribbon, Mang Inasal, Burger King, PHO24, and Panda Express.

Abroad, it operates Yonghe King, Hong Zhuang Yuan, Dunkin’ Donuts, Tim Ho Wan, Highlands Coffee, Smashburger, and Hard Rock Cafe. – Rappler.com