Balai Ni Fruitas, Inc. Reported P145 Million in Revenues and 38% Net Income Growth in Q12024

Balai ni Fruitas, Inc., a leading counter-service bakery operator, reported strong financial performance in Q12024. Revenues increased significantly, hitting P145 million, a 27% increase from Q12023. Balai Pandesal remained the company's fastest-growing brand in terms of same-store sales. The corporation has continued to promote e-commerce to boost revenues.

The company's good success was highlighted by a 30% increase in gross profit, which reached P74 million in Q12024 versus P57 million in Q12023. Despite ongoing inflationary pressures, the company was able to generate a gross profit margin of 51% in Q12023, which is consistent with the full-year 2023 level and higher than the gross profit margin of 50% in Q12023. The company expanded its portfolio by including higher-margin products.

In the first quarter of 2024, the company's EBITDA was P28.8 million, 48% more than the P19.5 million recorded in the same period in 2023. The company also reported a net income of P13.2 million in Q12024, up 38% from P9.6 million in Q12023. The corporation concentrated on good cost management while also benefiting from economies of scale. In the first quarter of 2024, the EBITDA margin was 20% and the net income margin was 9.1%, which was higher than in the first quarter of 2023.

BALAI's store network grew further, with 121 locations nationally by the end of Q12024. BALAI made important progress toward implementing its strategic plans by completing the acquisition of Sugarhouse, a well-known brand with a four-decade history in the baked goods market. The acquisition, which was formalized by a Memorandum of Agreement signed on April 18, 2024, and consummated on May 7, 2024, is a strategic move by BALAI to diversify its product line, particularly in the cake area. BALAI also intends to expand its customer base through Sugarhouse.

"With the robust performance we have achieved in the first quarter of 2024, we continue to strengthen our position in the market. The recent addition of Sugarhouse to BALAI further underscores our commitment to enhancement of our product portfolio. As we continue to implement our strategic initiatives in the coming quarters, BALAI remains poised to sustain its growth," said Mr. Lester Yu, BALAI President and Chief Executive Officer.

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 3 well-loved brands in its portfolio, which includes Balai Pandesal, Buko ni Fruitas, and Fruitas House of Desserts. Balai ni Fruitas currently has more than 100 active stores spread among the 3 brands. It completed the acquisition of Sugarhouse assets in May 2024.