Jollibee Deeper In The Red As Company Shifts To Digital Platform, Closing Branches
JOLLIBEE DEEPER IN THE RED –Jollibee Food Corp disclosed to the stock exchange that they lost P10.17 billion from April to June.
Due to the coronavirus lockdowns, Jollibee had to close down several of their branches. As such, the company invested heavily on improving its online delivery services.
However, this investment on digital platforms proved to be a costly endeavor as it suffered almost 10 times the P1.8 billion losses in the last quarter. In the same period, the food giant profited P.104 billion last year.
According to a report from PhilStar, Jollibee continued its operations with a net loss of P11.96 billion. Still, even with the massive losses, Jollibee Chief Executive Ernesto Tanmantiong said it was within their projections.
Due to the constant lockdowns in heavily affected areas, Jollibee had to suspend operations of 7% of its worldwide outlets. As a result, share at Jollibee are trading up to 1.58% at P128.20 a piece as of 9:54 a.m. within the first trading our.
Based on the article, the push for digital service led to the closure of 255 branches and the merging operations to those still running. However, these closures are planned to be offset with 338 new outlets to be opened this year.
But, these branches would be focused on the Vietnam, Malaysia, China, and North American markets. With this, Tanmantion stated:
We expect sales and profit to increase significantly in 2021 to a point closer to the levels of 2019 and to grow at least at a historical growth rate of 15% annually by 2022
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