Fast-food giant Jollibee Foods Corp. (JFC) returned to profitability in the fourth quarter of 2020, ending three quarters of financial hemorrhage as its global restructuring program improved cash flow amid a prolonged COVID-19 pandemic.
Due to losses in the first three quarters, JFC recorded a net loss of P11.49 billion for full year 2020 compared to a net profit of P7.3 billion in 2019. But JFC narrowed its losses from a peak of P13.54 billion in the first nine months after chalking up a fourth quarter net profit of P2 billion.
The fourth quarter bottom line of P2 billion was 34.5-percent lower compared to the restated net income for the fourth quarter of 2019.
JFC’s 2019 audited consolidated financial statements of JFC were restated to reflect additional gains arising from the acquisition of gourmet coffee chain Coffee Bean & Tea Leaf (CBTL), as finalized based on independent third party valuations.
The group reported progress on reopening stores that had been closed temporarily due to the pandemic. As of end-2020, 96 percent of the group’s worldwide outlets have resumed operations.
“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,” JFC chief executive officer, Ernesto Tanmantiong said on Monday. —Doris Dumlao-Abadilla INQ