MANILA, Philippines — Balai ni Fruitas Inc., the listed bakery operator, reported a net income of P41 million in the nine months to September, up by 77 percent from P23 million from a year ago.
Revenue during the period rose by 65 percent to P387 million from P234 million the previous year.
In the third quarter alone, net income nearly doubled to P16.3 million from P8.5 million in the same period last year. Revenue rose by 55 percent to P138 million from P89 million, fueled by the continuous store network expansion and improved retail performance, the company said in a regulatory filing.
“With BALAI’s performance in the first nine months of this year, we are really happy, as it has given us not only good results, but also a strong foundation for the future. As the year’s final quarter approaches, we are determined to build on our outstanding financial success and end on a positive note. We’ll keep growing our network and developing innovative products so that BALAI becomes a mainstay in our clients’ daily lives and is a part of their celebrations,” Balai president and CEO Lester Yu said.
Despite the strong inflationary pressures that drive up the price of raw materials, the gross margin settled at 50 percent, which is slightly lower than the 51 percent gross margin during the nine-month period.
In order to control costs, the company implemented strategic price increases. It has also broadened supplier base and enhanced the sourcing of raw materials.
Thus, Balai was able to launch new products and expand its retail network more quickly due to its solid cash position.
Balai has a store count of 119 stores as of Nov. 7, 2023.
The company, primarily engaged in the business of freshly baked goods and fruit-based beverages and desserts, is a wholly-owned subsidiary of Fruitas Holdings Inc.
Balai started its operations in August 2005 when it opened its first “Buko ni Fruitas” kiosk in Robinsons Place Manila serving fresh coconut-based beverages and desserts.
Since then, the company has expanded to create and acquire new brands. Currently, it has three active brands namely, Buko ni Fruitas, Fruitas House of Desserts and Balai Pandesal.