Balai ni Fruitas 127-Store Nationwide Network Earns PHP32 Million In 1H 2024

Balai ni Fruitas Inc. (BALAI), a prominent Philippine counter-service bakery operator, reported a net income of PHP32 million for the first half of 2024, reflecting the strong performance of its 127-store network strategically located nationwide.

BALAI maintains four well-loved brands in its portfolio, including Balai Pandesal, Buko ni Fruitas, Fruitas House of Desserts, and Sugarhouse. I Photo: Balai Pandesal

This 1H2024 net income represents a significant 30% increase from the PHP25 million reported in the first half of 2023, the company disclosed to the Philippine Stock Exchange (PSE).

Notably, six new stores were added by the end of the first quarter of 2024, contributing to the overall growth.

BALAI's revenues for the first six months of 2024 surged to PHP315 million, marking a 27% increase from PHP249 million in 1H2023. This growth was driven by the strategic expansion and enhanced performance of the store network, the company emphasized.

The gross profit for 1H2024 rose by 31%, reaching PHP156 million compared to PHP120 million in the same period in 2023.

Despite ongoing inflationary pressures, BALAI's gross margin improved to 49.6% from 48.0% in the previous year. The company attributed its strong financial results to higher-margin products, strategic expansion efforts, and operational efficiencies.

BALAI highlighted its skillful navigation of the food service industry, securing several strategic external partnerships in 1H2024.

Mr. Lester C. Yu, BALAI President and CEO, commented, "In the first half of the year, BALAI has demonstrated outstanding performance, achieving notable success in both financial results and operational efficiency. Our relentless focus on customer satisfaction and commitment to delivering superior-quality products continue to be our primary objectives."

BALAI maintains four well-loved brands in its portfolio, including Balai Pandesal, Buko ni Fruitas, Fruitas House of Desserts, and Sugarhouse.

The company achieved another significant milestone with the signing of an exclusive Cebu and Zamboanga distribution agreement with D’ Famous Red Box Corporation through its legacy brand, Polland Hopia.

Polland Hopia, renowned since 1966, is celebrated for its authentic mung bean cakes, including popular varieties like Mongo Special Hopia, Black Mongo Hopia, Chocolate Fudge Hopia, and Ube Hopia.

Mr. Yu added, "The recent establishment of strategic partnerships further illustrates our dedication to leveraging our core strengths. I am confident that these initiatives will reinforce our market presence and foster continued growth and success in the coming quarters."