Fruitas earmarks over P240 million for 2021 capex

MANILA, Philippines — Food stall operator Fruitas Holdings Inc. is targeting to spend as much as P270 million this year to fund business plans meant to help the company rebound from last year's pandemic shock.

In a disclosure to the stock exchange, Fruitas said it is setting aside "P240 million to P270 (million)" for capital investments in 2021, relatively unchanged from last year's spending plan amounting to P270 million.

Broken down, P150 million of this year's budget will go to network expansion, including the addition of at least 100 kiosks and 70 community stores. Fruitas currently targets to operate about 1,100 kiosks and 100 community stores by the end of 2021.

Meanwhile, P70 million to P100 million has been earmarked for brand acquisitions and development of two new concepts to be launched in the first quarter. The remaining P20 million has been allocated for "commissary expansion."

“We had a temporary setback in terms of operating results in 2020, but we were able to successfully execute numerous initiatives to broaden product breadth and client reach," Lester Yu, company president and chief executive, said.

"There are still abundant opportunities to generate growth and improve margins. Our stronger footing post-pandemic makes us confident about 2021,” Yu added.

Fruitas, known for its fresh fruit shakes supported by commuters braving traffic jams, was among the companies that were badly beaten when lockdowns meant to arrest the virus spread kept people indoors and shut down public transportation last year.

Although it is yet to release its full yearend financial results, Fruitas said revenues grew 60% quarter-on-quarter in the final three months of 2020, albeit easing from 90% quarter-on-quarter jump recorded in July-September period.

On Thursday, shares in Fruitas went up 0.57% to close at P1.75 each. — Ian Nicolas Cigaral