Balai Ni Fruitas, Inc. Reported P535 Million Revenues, Up 57%; P59 Million Net Income, Up 58% in 2023

Balai ni Fruitas Inc., a pioneer in Philippine counter-service bakery businesses, reported revenues of P535 million in 2023, up 57% from P341 million in 2022. Despite persistent inflationary pressures, the company's EBITDA and net income margins improved in 2023. BALAI reported 59% and 58% growth in EBITDA and net income, respectively.

Based on the most recent publicly released financial figures, BALAI beat all other foodservice companies listed on the Philippine Stock Exchange in terms of revenue growth and net income margin in 2023.​

Balai's brands, led by Balai Pandesal, recorded significant same-store sales growth (SSSG) in 2023. Balai Pandesal businesses raised revenue by generating repeat purchases from clients in the communities where they are located. Balai Pandesal has also added many new baked items to its menu and expanded the curated collection of third-party goods in its outlets. Meanwhile, Buko ni Fruitas and Fruitas House of Desserts profited from increased mall and food court traffic. The company also continued to expand its retail network, adding 20 outlets this year and 118 by the end of 2023. Other strategic initiatives that contributed to the company's significant sales growth included the distribution of Balai Pandesal baked goods in other Fruitas stores owned by its associates, increased e-commerce sales through the Fruitas group's website and third-party aggregators, and third-party modern trade distribution, particularly in Cebu.​

Despite rising raw material costs and other direct expenses, the company's gross profit margin in 2023 was only slightly lower than in 2022. This was accomplished through tactical but limited price increases, but more crucially, a shift in product mix toward higher-margin products.

In 2023, the company achieved EBITDA of P109 million, a 59% increase over P68 million in 2022. The 2023 EBITDA margin of 20.3% is an increase from 20.0% in 2022. Revenue growth surpassed operational expense increases, allowing the company to continue to benefit from economies of scale. The company's net income was P59 million in 2023, up 58% from P37 million in 2022. The company was able to control depreciation and amortization by strategically expanding its network and leveraging e-commerce and third-party distribution. In 2023, the net income margin increased marginally to 11.0%, up from 10.9% the year before.
​
“2023 marked significant milestones for BALAI as we passed 100 stores and the half-billion peso revenue level. We continue to maximize shareholder value by expanding intelligently and controlling our costs. We responded to the pandemic by acquiring Balai Pandesal and rolling out community stores and we are glad that this strategy paid off. We are now growing same store sales by earning customer loyalty and constantly improving our product offerings. We believe we have also barely scratched the surface in terms of provincial expansion and we have already started to build capacity to serve this market. Most importantly, I salute all of my BALAI colleagues, including store crew and management, for this year’s strong financial results. As a team, we can exceed our customer’s expectations and continue this growth trajectory,” 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.