Balai profit soars in 2024

MANILA, Philippines — Counter service bakery operator Balai ni Fruitas Inc. booked higher earnings last year following a robust top line growth which was driven by improved same-store sales and strategic expansion of the company’s retail footprint.

Balai registered a 16-percent increase in net income to P68 million in 2024 from P59 million in 2023 as revenues climbed by 25 percent to P668 million from P535 million.

Balai president and CEO Lester Yu called 2024 as a defining year for the company, marked by sustained growth, strategic milestones and strengthened brand equity.

“We continued to deliver solid performance across our core brands – Balai Pandesal, Buko ni Fruitas and House of Desserts – while successfully integrating the Sugarhouse brand into our portfolio, allowing us to enter the premium cake segment and expand our production capabilities,” Yu said.

The group completed the acquisition of the 40-year-old Sugarhouse brand, along with key operational assets, in April last year.

The acquisition reinforced Balai’s portfolio by expanding into the premium cake category and enhancing production capacity.

Yu said the group’s exclusive distributorship of Polland Hopia in Cebu and Zamboanga, meanwhile, opened new doors for regional growth and synergies within its community-based stores.

Balai in the second half of last year further expanded its product offering by securing an exclusive distributorship agreement with D’ Famous Red Box Corp., granting it the sole rights to distribute Polland Hopia brand in Cebu and Zamboanga.

The strategic partnership enabled Balai to tap into two key regional markets with strong consumer demand for traditional Filipino delicacies.

“With our store footprint growing year after year, we are more committed than ever to reaching more Filipino households and delivering well-loved, quality products that resonate with our market. As we move forward, we remain focused on sustainable growth, brand innovation and bringing the Balai experience closer to every Filipino,” Yu said.

Balai, a 75-percent owned subsidiary of Fruitas Holdings Inc., ended 2024 with 132 stores nationwide composed of 63 Balai Pandesal, 39 Buko ni Fruitas, 28 House of Desserts and two Sugarhouse stores.

The company said that it once again outperformed all other food service companies listed on the Philippine Stock Exchange last year, leading the sector in both revenue growth and retaining its position as one of only two companies in the sector with double-digit net income margin.