Jollibee Foods Corporation reported an attributable net loss of P11.5 billion last year, 257 percent lower than the P7.3 billion earned in the same period of 2019 due to the impact of the COVID-19 pandemic.

However, the firm is optimistic of a recovery this year and has set a capital expenditure budget of P12.2 billion, 22 percent higher than the actual spending in 2019 of P10 billion, to fund the opening of about 450 stores (gross).

The firm disclosed to the Philippine Stock Exchange that it generated a net income of P2.0 billion in the fourth quarter of 2020, after incurring net losses in the past three quarters caused by the pandemic.

“All of our regions generated recurring profit in the fourth quarter, led by the Philippines. We have significantly improved the Smashburger and The Coffee Bean & Tea Leaf businesses that they are now in a reasonable position to start generating profit in 2021,” said Jollibee Foods Corporation Chief Executive Officer Ernesto Tanmantiong.

He noted that, “Our strong profit recovery shows our organization’s capability to execute complex and massive undertaking in a very short time like the Business Transformation. It was a very difficult and painful program but the right thing to do for the long term good of the business and the organization.”

System wide sales, a measure of all sales to consumers from both company-owned and franchised stores, dropped 27.8 percent to P175.97 billion in 2020 from P243.79 billion in 2019.

Revenues dropped 27.9 percent last year to P129.48 billion from P179.63 billion in 2019.

For the fourth quarter alone, system wide sales decreased by 31.9percent to P49.5 billion while revenues decreased by 29.9 percent to P36.7 billion versus a year ago primarily as a result of permanent store closures and lower sales per store due to the COVID-19 pandemic.

Same store sales growth rates by region for the fourth quarter versus year ago were as follows: Philippines down 35.2 percent, China up 0.2 percent, North America excluding The Coffee Bean & Tea Leaf® (CBTL) down 3.5 percent, EMEAA down 8.6 percent, SuperFoods Group primarily Highlands Coffee in Vietnam down 5.4 percent and CBTL global lower by 21.8 percent.

However, the firm said these rates of decline represented improvement over those in the third quarter for most businesses.

JFC continued to make progress on reopening stores that had been closed temporarily. As of December 31, 2020, 96 percent of the group’s worldwide outlets were already operating: 100 percent of stores in China and EMEAA, 98 percent in the Philippines, 94 percent in North America, 95 percent for SuperFoods and 90 percent for CBTL.

Tanmantiong said “We look forward to sustained recovery of the business as the world gradually returns to normalcy, aided by the introduction of new vaccines. We plan to open 400 plus new stores worldwide most of which will be outside of the Philippines, particularly in North America, Vietnam and China.”

He added that, “We aim for very strong sales and profit recovery in 2021 versus 2020. In 2021 and the years ahead, JFC’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 business and organization.”