CafeFrance doubles income despite lower revenues
The Yap family’s CafeFrance Corp. more than doubled its net income last year to P6.3 million from P2.7 million in 2014 with cost cutting measures offsetting the impact of lower revenues.
CafeFrance is a subsidiary of EuroMed Laboratories Phils Inc. that is majority-owned by the Yaps who own the Manila Bulletin.
CaféFrance is a café bakery with sandwiches, soups, and pasta as the main fare that also serves rice meals.
CafeFrance slashed its liabilities to P561 million last year from P920 million in 2014, significantly paring down interest expenses.
The company reported capital expenditures of only P32 million last year from P200 million in 2014.
CafeFrance now relies on outsourced service providers for steady manpower supply, EuroMed Laboratories said in a disclosure to the stock exchange.
The company said it has invested heavily in the training of its personnel in the stores and commissary but employee retention has been challenging.
To prevent the risk of disrupting its operations from sudden employee resignations, it decided to tap service providers.
Aside from training, CafeFrance also paid for the special accreditation and licenses of some of its staff that were over and beyond what was required by government.
“CafeFrance has had to pay a premium for the provider’s administration fees, but in so doing, the Company has managed to address the risk of manpower supply as well as the perennial issue on employee turnover,” the disclosure said. (By: Eileen A. Mencias)