Fruitas Records 26% Sales Growth Year-on-Year
Fruitas Holdings, Inc. (FRUIT) continued its recovery momentum in the fourth quarter of 2021.
Photo Insert: Sabroso Lechon
Consolidated revenues increased 33% to Php330 million during the last quarter of 2021 from Php248 million in the third quarter of 2021. Full-year net loss for 2021 was Php16 million, 66% lower than the Php48 million recorded in 2020.
Revenue performance for 4Q2021 was 25% higher than in the same quarter of 2020 due to the easing of restrictions and heightened mobility. FRUIT posted a positive EBITDA of Php38 million in 4Q2021, a 57% improvement from Php24 million in 3Q2021. Full-year EBITDA also more than doubled to Php131 million in 2021 from Php65 million in 2020.
The further easing of quarantine restrictions and strengthened vaccination initiatives has allowed the company to register a 24% revenue growth from Php892 million in 2020 to Php1.1 billion in 2021. The recent entry to the baked goods industry, through Balai Pandesal, has also allowed the Group to improve its gross profit margin for 2021 to 62% compared to 60% in 2020.
FRUIT’s net sales were maintained at the Php330 million level in the first quarter of 2022, the same level as the fourth quarter of 2021. This was achieved despite the lack of seasonal uptick from the Christmas season, including lechon sales, in the first quarter of 2022 and the Level 3 restrictions imposed in January 2022.
Revenue performance for 1Q2022 was 26% higher than in the same quarter of 2021, and already 88% of the 1Q2020 revenue level even with less number of stores. For 1Q2022, FRUIT posted a gross margin of 62.2%, which is better than the 61.9% gross margin in 2021 and 60.7% in the comparable quarter in 2020 (1Q2020).
FRUIT posted EBITDA of Php53 million in 1Q2022, with EBITDA being consistently positive dating back to 3Q2020. FRUIT registered a net income of Php6 million in 1Q2022, higher than the breakeven of 4Q2021, but a significant improvement from a net loss of Php16 million in 1Q2021.
FRUIT had about 700 stores in its network in March 2022 and had already added about 10 stores in 2022 until May 23, 2022.
The registration statement for the IPO of Balai ni Fruitas, Inc. (BALAI), a wholly-owned subsidiary of FRUIT, was formally received by the Securities and Exchange Commission (SEC) on February 17, 2022. BALAI shares are targeted to be listed on the Small, Medium and Emerging Boards of the Philippine Stock Exchange (PSE). However, the IPO of BALAI and the timing of the IPO are subject to compliance with the requirements of the SEC and PSE, obtaining approvals of the SEC and PSE.
“We are fully committed to deliver value to our shareholders by improving operations and profitability. The potential IPO of BALAI will be an important exercise for us, which we expect to complete in first half of 2022,” said Mr. Lester Yu, Fruitas Holdings Inc. President and Chief Executive Officer.