Pizza Hut Manager Loses Rp93 Billion And Cuts Hundreds Of Workers In 2020

JAKARTA - The huge effects of the COVID-19 pandemic are strongly felt by restaurant businesses. One of the most hit is PT Sarimelati Kencana Tbk, the manager of Pizza Hut outlets in Indonesia.

COVID-19 even caused Pizza Hut to "take to" the streets to sell its wares amid strict social restrictions throughout 2020. As a result, their financial performance was disappointing by bearing significant losses.

Quoted from the company's financial report published on the Indonesia Stock Exchange (IDX) page, Monday, May 17, Pizza Hut recorded a net loss of Rp93.51 billion in 2020. In fact, this PZZA-coded issuer was able to record a net profit of Rp200.02 billion in 2019.

The company's net sales amounted to Rp3.46 trillion last year. It also ambles 13.25 percent from the previous year of Rp3.99 trillion.

This loss caused PZZA to record a loss per basic share to Rp 31.08 from the previous year of earnings per share of Rp 66.19/share.

PZZA recorded a decrease in cost of goods sold in 2020 to Rp1.20 trillion from the same period in 2019 of Rp1.30 trillion. Meanwhile, general and administrative expenses increased to Rp209.43 billion from Rp197.13 billion, other operating expenses also increased to Rp25.87 billion from Rp10.31 billion previously.

The sale of PZZA consists of food, beverages and sales cuts. The food business line accounted for the highest share of sales at Rp3.29 trillion, down from Rp3.57 trillion previously.

The beverage business line reached Rp181.44 billion, also down from the previous year of Rp426.35 billion. Meanwhile, sales cuts were recorded at Rp10.10 billion or corrected from the previous Rp11.17 billion.

Not only the losses, the number of PZZA workers also shrinks, especially permanent workers. They were forced to cut the number of employees for the efficiency of the company's expenses.

As of December 31, 2020 and 2019, the company had 5,787 and 6,560 permanent employees (unaudited) respectively. This means there is a reduction in workers by about 773 permanent workers in the year-over-year period.

Nevertheless, the number of Pizza Hut outlets increased by 4 throughout Indonesia.

PZZA as of December 31, 2020 operates 520 outlets each. While in 2019, they have 516 Pizza Hut outlets throughout Indonesia.