Fruitas raises P200M from corporate notes

FOOD and beverage kiosk operator Fruitas Holdings Inc. has beefed up its war chest with P200 million in fresh funds, which were raised from a maiden private placement of corporate notes.

Proceeds will be used to fund working capital requirements and other general corporate purposes, Fruitas said in a disclosure on Wednesday, adding that the issuance received “warm” support from institutional buyers and lenders.

The transaction, facilitated by RCBC Capital Corp. on Tuesday, was expected to further diversify the listed company’s financing sources.

“This milestone represents a significant step forward for Fruitas Holdings, signifying our increasing prominence in the market,” Lester Yu, president and chief executive officer, said in a statement.

“We will reciprocate this confidence by delivering on our strategic initiatives. This note issuance provides a new financing source, which will empower House of Fruitas to expand its product offerings and access a broader customer base,” he added.

Fruitas debuted on the Philippine Stock Exchange in 2019, raising P1.01 billion from an initial public offering (IPO). This was followed by a P289-million IPO of subsidiary Balai ni Fruitas in 2022.

The company, which had 817 total stores operating by year-end 2023, said it also collaborated with more financial institutions to expand the group’s credit lines.

“This has allowed Fruitas Holdings to firmly establish itself as a leader in food and beverage stores across multiple formats, expand its production capacity, and complete several transformational acquisitions,” it said.

Fruitas saw its consolidated net income grow 37 percent to P113 million last year from the P82 million booked a year earlier, as total revenues soared to an all-time high of P2.5 billion from P1.8 billion.

On Wednesday, Fruitas Holdings shares rose 3.9 percent to 80 centavos each amid a 0.7-percent uptick in the benchmark Philippine Stock Exchange index.