Balai ni Fruitas Inc., a listed counter service bakery operator, said Thursday net profit last year surged 58 percent to P59 million, reflecting higher revenue higher same store sales on account of increased foot traffic in shopping malls, opening of more stores, and the introduction of new products.
Balai generated revenue of P535 million in 2023, representing a 57 percent surge despite continued challenges from inflation.
All of Balai’s brands, led by Balai Pandesal, registered significant same store sales growth last year.
Balai Pandesal stores increased its sales from repeat transactions among customers in the communities where they are located. Balai Pandesal also introduced several new baked goods in its menu and widened the curated selection of third-party goods in its stores.
Meanwhile, Buko ni Fruitas and Fruitas House of Desserts benefited from increased foot traffic in malls and food courts.
The company also continued the expansion of its retail network, adding 20 stores in the year, to end 2023 with 118.
Other strategic initiatives also contributed to the company’s significant sales growth, including distribution of Balai Pandesal baked goods in other Fruitas stores, belonging to 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.
The company posted a gross profit margin of 51 percent last year, only marginally lower than 2022, despite the escalation in costs of raw materials and other direct expenses.
This was achieved through tactical but limited price increases, but more importantly, through change in product mix, towards higher-margin products.
