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JOLLIBEE Foods Corp. posted P2.05 billion in attributable net revenue in the fourth quarter of 2020, down 34.5% from the prior year, but reversing losses incurred in the prior three quarters.
Still, Jollibee ended 2020 with a net loss of P11.5 billion, a reversal from an updated net income of P7.3 billion in 2019.
The 2019 updated net attributable income reflects the company’s acquisition of The Coffee Bean & Tea Leaf, which allowed it to obtain P4.4 billion from the transaction.
Jollibee posted P7.1 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter.
Fourth quarter revenue, meanwhile, slowed by nearly 30% to P36.7 billion compared to P52.42 billion in the same period a year earlier.
Jollibee said the decline was due to the permanent stoppage of operations at four police stations and 486 stores, and low sales per point of sale due to the 2019 coronavirus disease (COVID-19).
In May 2020, it launched its business transformation program, which focused on streamlining the company’s operations as it adjusted to the global pandemic. The program was allocated P7 billion in June 2020, and has since used up to 96% or P6.7 billion by the end of the year.
The program reorganized 262 of its stores. Jollibee is now reopening many of its stores, which have been temporarily closed.
As of December 31, up to 96% of the company’s stores had started operating again. All of them have generated profits in the fourth quarter.
In the Philippines, 98% of the stores are in operation. Sales registered a 35.2% drop from the 45.6% slowdown in the third quarter.
Since then, all points of sale in China have reopened, where store sales grew 0.2% after declining 7.7% in the previous quarter.
Stores in North America have reopened, where 94% of Jollibee stores have resumed business. Excluding The Coffee Bean & Tea Leaf sales, sales in the region grew 3.5% from a 6.6% drop in the third quarter.
“Our solid earnings recovery shows our organization’s ability to execute complex and massive projects in a very short time like Business Transformation. It was a very difficult and painful program, but the right thing to do for the long-term good of the company and the organization, ”Jollibee CEO Ernesto Tanmantiong said in a statement.
The company maintains a positive outlook for the rest of this year.
“We expect a sustained recovery in business as the world gradually returns to normal, with the help of the introduction of new vaccines,” Tanmantiong said.
The official also said that the company plans to open more than 400 new stores, most of which will be in North America, Vietnam and China to make up for losses incurred in 2020.
“In 2021 and the years to come, [Jollibee’s] sales and profit growth will be driven by its international business. We believe that, out of this pandemic, we will emerge as a stronger company and organization, ”added Tanmantiong.
Jollibee shares on Monday’s stock rose 0.80 points or 0.45% to close at P179.50 each. – Keren Concepcion G. Valmonte
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