Balai ni Fruitas posts 77% growth in 9-month profit
MANILA -Balai ni Fruitas Inc., the listed bakery arm of businessman Lester Yu’s Fruitas Holdings, recorded a 77 percent jump in profits during the first nine months of the year amid the continued expansion of its network and price increases to shield margins.
From January to September this year, the operator of Balai Pandesal bakeshops booked a net income of P41 million versus P23 million during the same period last year, a stock exchange filing on Tuesday showed.
Revenues grew 65 percent to P387 million while earnings before interest, taxes, depreciation and amortization expanded by 62 percent to P74 million.
“With Balai’s performance in the first nine months of this year, we are really happy, as it has given us not only good results but also a strong foundation for the future,” said Yu, who is Balai president and CEO.
“As the year’s final quarter approaches, we are determined to build on our outstanding financial success and end on a positive note,” he added.
Balai said growth during the period was driven by the opening of new stores and investments aimed at improving their “retail performance”.
READ: Growth strategy aids Balai to increase profit by 336%
It opened four new stores in the past quarter, bringing the total branch count to 119 outlets as of Nov. 7 this year, the filing showed. Apart from Balai Pandesal, the company also operates Buko ni Fruitas and Fruitas House of Desserts outlets.
Balai said it implemented price increases and widened sources of raw materials to blunt the impact of soaring inflation. This helped the company maintain gross margins at 50 percent versus 51 percent during the same period last year.
Yu also underscored the company’s strong cash position, which allows them to bankroll expansion activities.
“We’ll keep growing our network and developing innovative products so that Balai becomes a mainstay in our clients’ daily lives and is a part of their celebrations,” Yu said.
