Balai earnings rise amid expansion

Balai’s core brands include Balai Pandesal, Buko ni Fruitas and House of Desserts.

MANILA, Philippines — Listed bakery operator Balai Ni Fruitas Inc. booked a 16-percent climb in its profit last year to P68 million. 

This was achieved as the company took in gains from network expansion and new products added to its portfolio. 

In a stock exchange filing on Monday, the company led by businessman Lester Yu said its top line had likewise jumped by 25 percent to P668 million. 

Earnings before interest, taxes, depreciation and amortization swelled by a quarter to P134 million, while gross profit rose by 26 percent to P345 million. 

Yu, president and CEO of Balai, said 2024 was “a defining year for Balai, marked by sustained growth, strategic milestones and strengthened brand equity.” 

Balai’s core brands include Balai Pandesal, Buko ni Fruitas and House of Desserts. Last year, the firm ventured into the premium cake segment via Sugarhouse. 

READ: Balai Ni Fruitas acquires Sugarhouse

Balai took over the legacy cake brand in April 2024, fully integrating it into its portfolio. It made Sugarhouse products available in its e-commerce and brick-and-mortar stores. 

Yu earlier unveiled plans to put up a Sugarhouse branch in Cebu City. The brand only has two physical stores, both of which are in Metro Manila. 

Balai also partnered with D’ Famous Red Box Corp. to become exclusive distributor of Polland Hopia in Cebu and Zamboanga. 

Further, Balai inked an agreement with Bukidnon Milk Co. to exclusively distribute the latter’s dairy products in Metro Manila. 

“With our store footprint growing year after year, we are more committed than ever to reaching more Filipino households and delivering well-loved, quality products that resonate with our market,” Yu said. 

As of end-December, Balai had 132 stores across the country. These include 62 Balai Pandesa, 39 Buko ni Fruitas, 28 House of Desserts and two Sugarhouse branches. 

Parent firm Fruitas Holdings Inc. was also on expansion mode last year. It acquired a 60-percent equity stake in Mang Bok’s Lechon Manok for P9 million. This marked the company’s entry into the chicken category. 

Mang Bok’s previously had as much as 80 branches in the Philippines. However, the number later dwindled to less than 10. 

According to Fruitas, this was due to challenges brought about by the COVID-19 pandemic.