earnings reports

Jollibee profits recover abroad in areas with low COVID-19 cases

Ralf Rivas
Jollibee profits recover abroad in areas with low COVID-19 cases
Jollibee's losses swell to P13.54 billion in January-September 2020, but it sees signs of recovery in countries that managed to contain COVID-19 infections

Jollibee Foods Corporation sustained losses in the 3rd quarter of 2020, but managed to see signs of recovery in some parts of the world like China, where COVID-19 cases have been contained.

Generally, Jollibee said its businesses in developed countries are recovering faster than those in emerging markets. (READ: How the pandemic is crushing company earnings)

This is how same store sales growth – the difference in revenue generated by a restaurant’s existing outlets over a certain period, compared to an identical period in the past – fared in the 3rd quarter versus the 2nd quarter:

“Our business is recovering from the pandemic in different parts of the world, some faster than others. This is made possible by the resilience and hard work of our people and business partners, the strength of our brands, and in cooperation with the communities and government agencies where we do business,” Jollibee chief executive officer Ernesto Tanmantiong said.

Jollibee still posted losses in the 3rd quarter, as sales remained weak overall.

Net losses amounted to P1.58 billion in the 3rd quarter, bringing the total losses from January to September to a whopping P13.54 billion.

Systemwide retail sales in the 3rd quarter amounted to P40.59 billion, 29% lower than in the same quarter last year. Year-to-date, sales dipped by 26.1% to P126.42 billion.

Jollibee said performance during the 3rd quarter “represented marked improvement” as compared to the 2nd quarter, where systemwide sales and revenues dipped 48.4% and 46.6%, respectively.

As of September, 93% of the Jollibee group’s stores have opened, but the speed of recovery varied in different regions of the world.

A total of 339 stores permanently closed in the first 9 months of the year due to challenging business conditions. Of the closed stores, 118 were in the Philippines, while 221 were abroad.

However, 180 stores also opened, mostly in the early part of the year.

Jollibee is spending P7 billion in 2020 for its business transformation, or its plan to rationalize its staffing, network, and supply chain.

“While the negative impact of the crisis is still affecting us, as we reopen stores, we are introducing new products, resuming strong marketing campaigns, strengthening our systems and infrastructure particularly for digital connections with our customers and for off- premise consumption of our products and opening of new stores mostly in our international business,” Tanmantiong said.

Total COVID-19 cases in the Philippines are nearing 400,000, with around 36,000 active cases and over 7,600 deaths.

More than 50 million infections have been recorded worldwide. – Rappler.com

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.