Fruitas’ earnings jump 62% on cost management

Fruitas Holdings Inc., the leading operator of multi-format food and beverage stores, reported a 62 percent jump in net income to ₱70.2 million for the first nine months of 2023 from the ₱43.3 million earned in the same period last year.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said net income reached ₱26.7 million for the third quarter of 2023, nearly double the reported bottomline of ₱13.9 million in the same period last year.

“With a strong third-quarter finish, House of Fruitas is well-positioned for sustained success in 2023's last quarter,” said Fruitas President and CEO Lester C. Yu.

He added that, “we are excited to take advantage of the growth opportunities presented by the upcoming quarter by offering pertinent products that will benefit our customers and stakeholders and establish the foundation for our vision to become a part of Filipinos' everyday lives.”

“We do this with a dedication to excellence, an unwavering focus on customer satisfaction, and a strategic vision,” Yu said.

Despite the lack of seasonal uptick from sale of beverages in the second quarter, the third quarter 2023 sales of ₱649.8 million outpaced second quarter 2023 sales of ₱624.1 million by 4.1 percent. Revenues for the first nine months of 2023 reached ₱1.8 billion, a 42 percent increase from the ₱1.3 billion registered for the same period last year.

Fruitas said it successfully increased its net income margin to 3.9 percent in the first nine months of 2023 from 3.4 percent in the same period the previous year and marginally higher from the 3.8 percent reported in the first half of 2023 despite the challenges brought by economic headwinds.

Consistent profit and margins are the outcome of the group's ongoing monitoring and control of its expenses apart from better retail performance and economies of scale.

There were 826 stores in the FRUIT network as of the end of October 2023. FRUIT plans to maintain a shrewd and methodical approach to its expansion while maintaining the speed at which its network is developing.