Balai ni Fruitas reports 26% revenue growth and sustained margins in 9M2024

9M2024 Highlights:

• 9M2024 revenue nearly reached the half-billion-mark, totaling Php487 million — a 26% increase, or Php100 million higher than Php387 million revenue in 9M2023.
  • 9M2024 gross margin remained robust at 49%, demonstrating resilience in a challenging economic environment.
  • 9M2024 EBITDA saw a significant increase, rising by 40% to Php104 million, compared to Php74 million in the same period of 2023. The EBITDA margin for 9M2024 improved to 21%, compared to 19% in 9M2023.
  • 9M2024 net income increased to Php52 million, 26% higher than the Php41 million net income in 9M2023.

Manila Philippines – Balai ni Fruitas Inc., listed on the Philippine Stock Exchange under the symbol “BALAI” and a leader among Philippine counter service bakery operators, registered Php487 million of revenue for the first nine months of 2024, Php100 million higher than the Php387 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 Php240 million, up from Php192 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 Php41 million in 9M2023 to Php52 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 Php100 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.

9M2024 vs 9M2023