Balai ni Fruitas posts 58% growth in 2023 earnings
MANILA, Philippines — Listed bakery chain Balai ni Fruitas Inc. of businessman Lester Yu posted a 58-percent growth in its 2023 earnings to P59 million amid its continued network expansion despite inflation challenges.
In a stock exchange filing on Thursday, Balai ni Fruitas, the bakery arm of Fruitas Holdings Inc. and operator of Balai Pandesal, said revenues likewise surged 57 percent to P535 million from P341 million in 2022.
Earnings before interest, taxes, depreciation and amortization also swelled by 59 percent to P109 million.
Company president and CEO Lester Yu said they had passed the 100-store mark last year after opening 20 new stores, bringing the company’s total retail network to 118.
“We are now growing store sales by earning customer loyalty and constantly improving our product offerings,” Yu noted in their disclosure.
Provincial expansion
“We believe we have also barely scratched the surface in terms of provincial expansion and we have already started to build capacity to serve this market,” he added.
Balai attributed its revenue growth to repeat transactions among customers via Balai Pandesal stores in their respective communities.
Its pandesal brand likewise expanded its menu to include new baked goods while also curating third-party products in stores.
Apart from Balai Pandesal, the company also operates Buko Ni Fruitas and Gruitas House of Desserts.
The company explained that “tactical but limited” price increases were able to control costs, resulting in a gross profit margin of 51 percent against 52 percent in 2022.
“We continue to maximize shareholder value by expanding intelligently and controlling our costs. We responded to the pandemic by acquiring Balai Pandesal and rolling out community stores and we are glad that this strategy paid off,” Balai added.
