BALAI posts profits growth in 2022 despite inflation storm

For most of 2022, brutal inflation was the biggest story as it left businesses and consumers struggling to make ends meet as prices of commodities and services hit premiums. To its credit, BALAI managed to churn earnings, as its gross profit margin in 2022 reached 52%, a better turnout compared to the 50% figure in the preceding year.
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MANILA, Philippines — Bakery operator Balai ni Fruitas Inc. (BALAI) saw its bottom-line mushroomed by triple digits in 2022 despite headwinds brought by stubbornly high inflation.

In a disclosure sent to the Philippine Stock Exchange on Wednesday, the company saw its net income balloon 336% year-on-year to P37 million in 2022. The growth was due in part to the expansion of its retail store network, BALAI said. 

Total revenues skyrocketed 129% to P341 million in the same period. 

For most of 2022, brutal inflation was the biggest story as it left businesses and consumers struggling to make ends meet as prices of commodities and services hit premiums. To its credit, BALAI managed to churn earnings, as its gross profit margin in 2022 reached 52%, a better turnout compared to the 50% figure in the preceding year. 

The company managed to add 21 more stores in 2022, using proceeds from its PSE listing to fund expansion. It ended the year with 98 units in its retail network. 

Earnings before interest, taxes, depreciation, and amortization — another measure of financial strength — surged 240% to P68 million in 2022.

"BALAI's growth has already surpassed our initial estimates,” said Lester Yu, company president and chief executive officer. — Ramon Royandoyan

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