Balai Ni Fruitas Inc. Reported 26% Revenue Growth and Sustained Margins in 9M24

Balai ni Fruitas Inc., listed on the Philippine Stock Exchange under the symbol “BALAI” and a leader among Philippine counter service bakery operators, registered P487 million of revenue for the first nine months of 2024, P100 million higher than the P387 million revenue in the same period last year. This notable increase was driven by the robust performance of its stores, with the flagship brand, Balai Pandesal, emerging as the primary revenue driver. The brand's continued success can be attributed to the popularity of both its anchor bread products and newer premium offerings.

The company’s gross profit increased by 25% in 9M2024, reaching P240 million, up from P192 million in the same period last year. Despite challenges posed by the broader economic environment such as higher prices for key raw materials, the company demonstrated strong resilience, maintaining a robust gross margin of 49% in 9M2024. Furthermore, BALAI’s EBITDA margin expanded by 2 percentage points, rising from 19% in 9M2023 to 21% in 9M2024, reflecting improved operational efficiency.

The company’s net income significantly grew by 26%, from P41 million in 9M2023 to P52 million in 9M2024. This translates to a stable net margin of 11%, underscoring BALAI's ability to deliver consistent profitability despite external pressures.

Balai Pandesal’s bread offerings have become beloved staples for daily breakfasts and snacks, driving strong demand and higher sales growth. The company’s recent acquisition, Sugarhouse, has also been successfully integrated, expanding the company’s product portfolio and attracting a broader customer base. As of September 30, 2024, BALAI operated a total of 131 stores, including 64 Balai Pandesal locations, 38 Buko ni Fruitas outlets, 27 House of Desserts branches, and 2 Sugarhouse stores, further expanding its presence in the Philippine market.

"I am pleased with Balai ni Fruitas' strong performance in the first nine months of 2024, highlighted by a P100 million revenue growth, a 25% increase in gross profit, and a 26% rise in net income. This solid growth reflects the continued popularity of our flagship brand, Balai Pandesal, and the resilience of our business despite economic challenges. Our operational efficiency and strategic expansion, including the addition of Sugarhouse, position us for long-term success. As we moved towards the end of 2024, we will remain committed to delivering value to our customers, employees, and shareholders as we continue to grow and strengthen our market presence," Lester C. Yu, President and CEO of Balai Ni Fruitas, Inc.
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Balai ni Fruitas Inc. is a 75% -owned subsidiary of Fruitas Holdings Inc. Since the acquisition of certain assets of Balai Pandesal in June 2021, the Company has grown the Balai Pandesal store network from 5 to more than 50 as of December 31, 2023. The company has 4 well-loved brands in its portfolio, which includes Balai Pandesal, Buko ni Fruitas, Fruitas House of Desserts, and Sugarhouse. Balai ni Fruitas currently has more than 100 active stores spread among the 4 brands. It completed the acquisition of Sugarhouse assets in May 2024.