Local fastfood giant Jollibee Foods Corp., JFC net loss Q1 reports P1.79 billion drop in revenue as the first quarter as the lockdowns imposed in the Philippines and other countries which resulted in the closure of most stores, dealt a heavy blow to its sales.
About 69% of JFC stores in the Philippines were temporarily closed, China (6%), North America 16% , Europe, Middle East and other parts of Asia (23%).
JFC chief financial officer Ysmael Basya said: “JFC’s financial performance in 2020 will not be a good one. It will incur higher losses in the second quarter when the full lockdowns on the business will be felt.
We expect the business to start recovering in the third to fourth quarters but we assume that the recovery will be slow.” The company announced it will spend P7 billion for implementing significant changes to its global business structure. The firm’s planned capital expenditures for 2020 was reduced by 63 percent from P14.2 billion to P5.2 billion. Operating loss for the first quarter amounted to P1.3 billion.
Shares of JFC fell by 4.84 percent to close at P116.10 per share on Wednesday after the first quarter results were disclosed, giving it a market capitalization of P135 billion. The company is now valued at just a third of its market capitalization of P364 billion back in January 2019.
The last time JFC incurred a quarterly net loss was in the fourth quarter of 2001, when it lost P27 million. Back then, JFC had yet to expand to mainland China, the United States or other overseas markets. More..
-Stockbytes PH, May 29, 2020
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