With no dine-in customers during the coronavirus lockdown, Jollibee Foods Corporation reported a net loss of US$41 thousand in the first quarter of 2020, representing a 253% plunge.
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Revenues fell by 2.3% to US$781 million from the US$798 million 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 US$138 million 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.
Jollibee will also slash its planned capital expenditures in 2020 by 63%, from US$281 million to US$103 million. 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.