Balai ni Fruitas chain expansion raised 2023 profits by 58%
Bakery chain Balai Ni Fruitas Inc. of businessperson Lester Yu posted a 58-percent rise in its 2023 earnings, which reached P59 million amid its continued network expansion despite inflation challenges.
In a stock exchange filing on Thursday, Balai, the bakery arm of Fruitas Holdings Inc. and the 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.
President and CEO Yu said they had passed the 100-store mark last year after opening 20 new sites, bringing the company’s retail network to 118 units.
“We are now growing store sales by earning customer loyalty and constantly improving our product offerings,” Yu said in their disclosure.
“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 with customers via Balai Pandesal stores in their respective communities.
The company’s Pandesal brand likewise expanded its menu to include new baked goods while also curating third-party products in stores.
The company also operates Buko Ni Fruitas and Fruitas House of Desserts.
The firm said “tactical but limited” price hikes were able to control costs, resulting in a gross profit margin of 51 percent against 52 percent in 2022.
“We responded to the pandemic by acquiring Balai Pandesal and rolling out community stores and we are glad that this strategy paid off,” the firm said. INQ
