Jollibee booked P1.58-billion net loss in third quarter as sales fell 29%

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Credit: Read the original article from Manila Standard Business.

Fastfood chain operator Jollibee Foods Corp. said Monday it posted a net loss of P1.58 billion in the third quarter, a reversal of the P1.67-billion profit it recorded in the same period last year, following store closures and weak sales in domestic and foreign markets.Jollibee said in a disclosure to the stock exchange system-wide sales, a measure of all sales to consumers both from company-owned and franchised stores, decreased 29.2 percent in the third quarter to P40.6 billion.It said the net loss in the first three quarters reached P13.5 billion.“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,” Jollibee president Ernesto Tanmantiong said.“We are now crafting our operating plans for 2021 and the years ahead. Our vision remains the same: to be one of the top 5 restaurant companies in the world,” he said.The company said while 93 percent of the group’s total store network were operational as of end-September, the speed of recovery varied in different regions.Global same-store sales fell 35.3 percent in the third quarter, while store sales growth in the domestic market went down by 45.6 percent.

Jollibee said that as part of its business transition program, it permanently closed down 339 stores in the first nine months, including 118 in the Philippines and 221 overseas. It said 507 stores would be permanently closed this year.The company said, however, that it opened 180 new stores, including 48 in the Philippines and 132 overseas as part of expansion plans.Jollibee allotted P7 billion for its business transition program which would cover the rationalization of the store network, store staffing and operations, supply chain and support groups on a worldwide basis.Jollibee is the country’s largest foodservice network with 3,247 stores as of end-September. It operates 2,566 stores mostly in China and the US.The share price of Jollibee rose 1.07 percent Monday to close at P198.90.

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