Fruitas earnings down to P111M on higher sales costs
Higher sales-related expenses offset the revenue gain of Fruitas Holdings Inc. last year, resulting in a 2-percent decline in earnings to P111 million.
In its annual report, the company led by businessman Lester Yu said its top line had expanded by 17.6 percent to P2.9 billion on higher sales.
At the same time, however, sales expenses jumped by 19.3 percent to P1.16 billion on the back of higher costs of raw material and packaging, labor, rent and utilities.
Core income, which excludes one-time gains and expenses, grew by 19 percent to P106 million, according to Fruitas.
Higher same-store sales and expansion of the group’s store network resulted in a 3.7-percent uptick in operating income to P164 million. Earnings before interest, taxes, depreciation and amortization also expanded by 8.8 percent to P389.3 million.
As of end-December, Fruitas had 848 stores in the country across various brands, including Balai Ni Fruitas, Johnn Lemon and De Original Jamaican Pattie Shop and Juice Bar. It has been venturing into various industries in a bid to diversify its product offering.
Last October, Fruitas bought a 60-percent share in Mang Bok’s Lechon Manok for P9 million, marking its entry into the chicken category.
At its peak, Mang Bok’s had at least 80 branches in the country, but challenges triggered by the pandemic caused the number to dwindle to less than 10, according to Fruitas.
This also represented the second legacy brand that Fruitas acquired in the span of a year.
In April 2024, its listed bakery arm, Balai Ni Fruitas, took over cake and pastry maker Sugarhouse.
Yu earlier said they planned to open a branch in Cebu City while boosting the 40-year-old brand’s digital presence in the National Capital Region.
Sugarhouse currently has only two branches: Santolan Town Plaza in San Juan City and Power Plant Mall in Makati City.
In 2023, Fruitas also acquired noodle house Ling Nam and expanded into the cloud kitchen business through Fly Kitchen.
