LISTED food and beverage retail operator Fruitas Holdings, Inc. tripled its net income during the first quarter to P19.2 million from P6.4 million in the same period last year.
“We expect to keep putting in strong performances in the upcoming quarters through a combination of organic growth and contribution from recent acquisitions,” Fruitas President and Chief Executive Officer Lester C. Yu said in a statement on Tuesday.
The company’s revenues grew by 55.9% to P515.2 million in the quarter from P330.5 million, driven by its continuous store network expansion and better store performance.
Its cost of sales for the first quarter grew by 42.3% to P211.3 million from P124.9 million due to the continuous rise of raw material prices.
“The company continues to implement efficient purchasing strategies and tactical price increases to mitigate the effects of inflationary pressures,” it said.
Operating expenses likewise rose by 42.3% to P275.1 million from P193.4 million in the previous year, mainly spurred by the company’s increased volumes during the three-month period and its expansions.
Meanwhile, Fruitas expects its newly acquired brand Ling Nam to boost its top line and bottom line. It recently acquired the legacy brand through its subsidiary Lingnam Food Inc.
The acquisition included Ling Nam’s trademark, recipes, equipment, store improvements, and inventory from the previous owner.
During the January-to-March period, the company added 10 new locations to its 800-store network. A Ling Nam restaurant in Zamboanga is set to open by the third quarter of 2023.
“To promote sustainable growth and profitability, we will continue to invest in our brands, channels, customers, and employees. The company is also in various stages of discussion with additional prospective targets which fit our portfolio,” Mr. Yu added.
On Tuesday, Fruitas shares rose by 4.1% or P0.05 to close at P1.27 apiece. — Adrian H. Halili