Jollibee swings to red in first quarter !-- --
In a disclosure to the local bourse on Thursday, Jollibee reported a net loss of
"We expect the business to start recovering in the third and fourth quarters, but we assume that the recovery will be slow," he said in a statement. "JFC's financial performance in 2020 will not be a good one," he added.
Shares in Jollibee shed 3.77% to close at P117.05 each on Thursday, worse than 0.
84% decrease in the main index. As of March, when Luzon was placed under enhanced community quarantine to control the pandemic, Jollibee was forced to shut down 69% of its stores in
Closures translated to a dismal 1.6% uptick in sales across all Jollibee brands, which include Red Ribbon, Greenwich, Burger King, Smashburger in the US, and its latest acquisition, Coffee Bean and Tea Leaf.
On a monthly basis, the company said sales that grew 15.7% year-on-year in February immediately turned negative and contracted 32.5% annually in March, even as the lockdown in Luzon was just enforced in
3% year-on-year by end-March, which in turn, translated to a net loss. That said, Jollibee has moved ahead and announced last week a P7-billion investment plan to boost its delivery segment and support growth at a time movement prohibitions are unlikely to entice people to dine into its 3,317 restaurant outlets nationwide.
While the government evaluates whether to allow people to dine in, even at 50% capacity of restaurants, Jollibee has said it would close down some non-performing stores, open 171 new ones in a "selective basis," while investing heavily delivery apps to support its business. "We have to rationalize and re-design our business structure to adapt to the new economic conditions and changed consumer behavior brought by the pandemic and emerge as a stronger business and organization in 2021," Baysa said.
On the flip side, the Filipino food brand said the company's cash position was stronger, while 71% of its
© Pakistan Press International, source