Fruitas suffers ₱48-M net loss in 2020

Fruitas Holdings, Inc. reported a consolidated net loss of ₱48 million last year down 140 percent from the net income of ₱121.5 million in 2019, as a revenues fell 54 percent to ₱892 million from ₱1.95 billion.

In a disclosure to the Philippine Stock Exchange, the firm said the net loss and lower revenues were due to the restrictions imposed during the lockdown which also resulted in some store closures.

However, Fruitas said it continued its recovery momentum in the fourth quarter of 2020 with consolidated revenues increasing 58 percent to ₱263 million during the last three months of the year from ₱167 million in the third quarter.

Revenue performance for the fourth quarter of 2020 was 52 percent lower than in the same quarter of 2019 due to continued mobility restrictions and temporary closure of about 15 percent of its stores.

“This increase in operating performance was a result of an improved gross margin and successful management of its operating costs,” the firm said.

Operating expenses, excluding depreciation and amortization and one-off expenses, increased 39 percent quarter-on-quarter to ₱139 million in the last quarter of 2020 compared to ₱100 million in the third quarter of 2020.

“However, the increase in operating expenses was much lower than the comparative 58 percent revenue increase, highlighting the company’s strong ability to boost profits as revenues increase,” Fruitas noted.

While revenues for 2020 fell, the firm said a better sales mix coming from products with lower direct costs allowed the Group to improve gross profit margin for 2020 to 60.0 percent, compared to 58.1 percent in 2019. (James A. Loyola)