FRUIT reports Php1.14 billion revenues in 1H2023, 45% higher versus 1H2022 Net income reaches Php43.5 million, 48% higher vs 1H2022

1H2023 Highlights:

• 1H2023 revenues expand to Php1.14 billion, a 45% increase compared to Php787.5 million generated revenues in 1H2022; 
• 1H2023 net income of Php43.5 million – significant upsurge of 48% compared to Php29.3 million net income in 1H2022.
• 1H2023 EBITDA at Php159.3 million compared to Php121.9 million in 1H2022 due to continuous store expansion and better retail performance.

Manila, Philippines – Fruitas Holdings, Inc., the leading food and beverage kiosk and community store operator listed on the Philippine Stock Exchange under the symbol FRUIT, reported Php43.5 million net income for 1H2023, 48% growth from the Php29.3 million reported in 1H2022. Total net revenues during 1H2023 breached the Php1.1 billion mark driven by the same-store sales growth, business expansion, and the addition of the Ling Nam store operations.

For 1H2023, FRUIT maintained a gross margin of 59% while the EBITDA margin settled at 14% due to tactical price increases to limit the effects of inflationary pressures and continues to capitalize on economies of scale. Despite the hurdles, FRUIT still managed to improve its net income margin to 3.8% in 1H2023 compared to 3.7% in the same period the previous year. The Group continues to monitor on and regulate its spending, which results in consistent profit and margins. FRUIT benefited from seasonal increase in demand for its beverages, specially in 2Q2023, while it continued to expand its product line with complementary offerings to reduce seasonality. 

FRUIT has managed to retain its strong financial position due to steady cash flow generation. With an increase in cash and cash equivalents from Php528.6 million at the end of 2022 to Php605.2 million at the end of June 2023, the Group will be able to pursue its strategic ambitions more aggressively by expanding its network of stores, launching new products, and evaluating potential acquisitions. Equity increased slightly from Php1.5 billion at the end of 2022 to Php1.6 billion as of the end of June 2023.

During the first part of 2023, Soykingdom Inc., through its fully-owned subsidiary

Lingnam Food Inc., finalized the purchase of the Ling Nam Wanton Parlour and Noodle Factory. As part of its strategic retail network growth, FRUIT anticipates opening at least 10 additional Ling Nam outlets in the next 12 months. A new milestone was also achieved when FRUIT welcomed Fly Kitchen Inc. as its newest subsidiary, just before the conclusion of 1H2023. Hatid Pinoy, Jade Express, and Kanin at Sabaw are only a few of Fly Kitchen’s brands that are offered in third-party food delivery service aggregators. The Group’s sales from e-commerce is expected to further accelerate with this acquisition.   

By the end of June 2023, FRUIT’s network had a total of 822 stores.  The Group anticipates opening at least 50 additional locations in the last two quarters of the year.  FRUIT intends to keep up its rapid network development while retaining a smart and systematic approach to its growth. 

“Our first half 2023 performance is proof of the Group’s capacity to enhance and innovate its product portfolio. We saw improved profits and controlled margins despite the uncertain economic climate. In light of this, we are eager to seize the upcoming quarters’ growth opportunities through store network diversification and relevant product offerings that will provide value to our customers and stakeholders while laying the groundwork for our vision to be the place where all Filipinos’ dreams come true,” said Mr. Lester C. Yu, FRUIT President and Chief Executive Officer.

1H2023 vs 1H2022

2Q2023 vs. 1Q2023

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