Balai ni Fruitas achieves 27% revenue growth and 30% net income surge in 1H2024

1H2024 Highlights:
•1H2024 revenue demonstrated a robust 27% growth, reaching Php315 million, up fromPhp249 million in 1H2023;
•1H2024 gross margin improved to 49.6%, reflecting a 160bps increase despite thechallenges posed by rising inflation;
•1H2024 EBITDA had a substantial increase, rising by 46% to Php68 million comparedto Php46 million in the same period of 2023;
The EBITDA margin for 1H2024 rose by 21.4% up from 18.6% in 1H2023;
•1H2024 net income grew to Php32 million, representing a 30% increase over thePhp25 million reported in the first half of 2023.

Manila Philippines – Balai ni Fruitas Inc., listed on the Philippine Stock Exchange under the symbol “BALAI” and a leader in Philippine counter service bakery operators, has demonstrated robust financial performance in the first half of 2024. For the first six months of 2024, the company’s revenues surged to Php315 million, reflecting a 27% increase from Php249 million during the same period in the previous year. This growth is attributed to the strategic expansion and enhanced performance of the store network of the Company.
1H2024 gross profit rose by 31%, reaching Php156 million compared to Php120 million in the first half of 2023. Despite ongoing inflationary pressures, the gross margin improved to 49.6% from 48.0% in the prior year. Additionally, net income increased from Php25 million in the first half of 2023 to Php32 million in 1H2024. The company’s strong financial results are primarily driven by higher-margin products, strategic expansion efforts, and operational efficiencies.
BALAI has skillfully maneuvered within the food service industry by securing several strategic external partnerships in 1H2024. Following its acquisition of Sugarhouse, the company achieved another significant milestone with the establishment of an exclusive distribution agreement with D’ Famous Red Box Corporation through its legacy brand, Polland Hopia. Polland Hopia, a cherished Filipino brand since 1966, is renowned for its authentic mung bean cakes, including popular varieties such as Mongo Special Hopia, Black Mongo Hopia, Chocolate Fudge Hopia, and Ube Hopia. This agreement grants BALAI exclusive rights to distribute Polland Hopia in Cebu and Zamboanga.
The Company concluded the first half of 2024 with a total of 127 stores nationwide, an increase of six new stores from the 121 stores reported at the end of the first quarter. Balai Pandesal, the flagship brand within the Company’s portfolio, achieved substantial same-store sales growth, driven by a series of innovative and highly sought-after product offerings.
“In the first half of the year, BALAI has demonstrated outstanding performance, achieving notable success in both financial results and operational efficiency. Our relentless focus on customer satisfaction and commitment to delivering superior-quality products continue to be our primary objectives. The recent establishment of strategic partnerships further illustrates our dedication to leveraging our core strengths. I am confident that these initiatives will reinforce our market presence and foster continued growth and success in the coming quarters,” remarked Mr. Lester C. Yu, BALAI President and Chief Executive Officer.

1H2024 vs 1H2023

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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. For more information, you may visit: https://balainifruitas.com/.
The foregoing disclosure contains forward-looking statements that are based on certain assumptions of Management and are subject to risks and opportunities or unforeseen events.
Actual results could differ materially from those contemplated in the relevant forward-looking statement and BALAI gives no assurance that such forward-looking statements will prove to be correct or that such intentions will not change.
This Press Release discloses important factors that could cause actual results to differ materially from BALAI’s expectations. All subsequent written and oral forward-looking statements attributable to BALAI or person acting on behalf of the Group are expressly qualified in their entirety by the above cautionary statements.