US: Jamba Inc losses mount in '08
Jamba Inc, owned of Jamba Juice Co, has reported a net loss of US$149m for 2008 and indicated that it plans to cut jobs in 2009.
Jamba said yesterday (16 March) that net loss for the 12 months of 2008 deepened to US$149m, compared to $113.3m in 2007.
Total group sales revenue rose to $342.9m for the year, up from $317m in 2007, while the drinks group trimmed operating loss from $228m in 2007 to $155.6m last year.
"While we are disappointed with the results for fiscal 2008, the company's board of directors and new management team have taken significant steps to improve long-term performance," said Jamba president and CEO James White, who took up his position in December 2008.
Jamba said that it is planning a range of cost cutting measures in 2009 and indicated that this would include job cuts.
The group said that it aims to bring labour costs as a percentage of store sales down to 34%. The figure was around 36% for 2008, according to Jamba's accounts.
The firm also plans to reduce cost of sales, as well as general administrative expenses. Further details were not given.
Regarding liquidity, Jamba sought to reassure investors and employees: "As of December 30, 2008, the company was in compliance with all debt covenants and expects to remain in compliance through fiscal year 2009."
Sectors: Soft drinks
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