LISTED bakery operator Balai ni Fruitas, Inc. said its net income in the third quarter rose 92% on the back of higher revenues.
In a stock exchange disclosure on Tuesday, Balai ni Fruitas said its third-quarter net income nearly doubled to P16.3 million from P8.5 million a year ago.
The company’s third-quarter revenues rose 55% to P138 million while its earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 68% to P28 million.
For the nine-month period, Balai ni Fruitas posted a 77% jump in its net income to P41.1 million from P23.2 million in 2022. Its net margin also expanded to 11% compared to 10% a year ago.
“The constant growth is fueled by the continuous store network expansion and improved retail performance,” Balai ni Fruitas said.
The listed firm’s revenues from January to September increased 65% to P387 million while EBITDA rose 62% to P74 million.
Balai ni Fruitas said it implemented price increases, broadened its supplier base, and improved the sourcing of raw materials to control costs amid the rising prices of raw materials.
“In spite of strong inflationary pressures that drive up the price of raw materials, the gross margin settled at 50%, which is slightly lower than the 51% gross margin in the nine-month period last year,” the company said.
The company said its cash and cash equivalents increased to P314 million from P255 million at the beginning of the year, while its shareholder equity climbed to P442 million as of the end-September period from P409 million as of last year.
“Balai ni Fruitas is able to launch new products and expand its retail network more quickly attributed to its solid cash position. The company continues to exemplify its ability to generate cash through the effectiveness of its store operations,” the company said.
As of Nov. 7, Balai ni Fruitas has 119 stores, with four new stores launched during the start of the fourth quarter.
“With Balai ni Fruitas’ 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. As the year’s final quarter approaches, we are determined to build on our outstanding financial success and end on a positive note,” Balai ni Fruitas President and Chief Executive Officer Lester C. Yu said.
“We’ll keep growing our network and developing innovative products so that the company becomes a mainstay in our clients’ daily lives and is a part of their celebrations,” he added.
Balai na Fruitas, a wholly-owned subsidiary of listed food retailer Fruitas Holdings, Inc., has three brands: Balai Pandesal, Buko ni Fruitas, and Fruitas House of Desserts.
On Tuesday, shares of Balai ni Fruitas at the local bourse rose P0.035 or 8.43% to 45 centavos apiece. — Revin Mikhael D. Ochave
