Food and beverage retail operator Fruitas Holdings Inc. is allotting P500 million as capital expenditure this year.
Fruitas president and CEO Lester Yu said the company is reviving its nationwide expansion plan with the reopening of the economy and investing P100 million for the opening of 100 additional stores this year.
Another P150 million has been set aside for the expansion of its commissary and up to P200 million for acquisitions and development of new concepts.
“We expect to keep putting in strong performances in the upcoming quarters through a combination of organic growth and contribution from recent acquisitions,” Yu said.
To promote sustainable growth and profitability, the business will continue to invest in its brands, channels, customers, and employees.
The company is also in various stages of discussion with prospective targets that fits our portfolio.
The firm aims to grow its net income by 30 percent this year after having tripled this to P19.2 million in the first quarter, from P6.4 million in the same period last year.
Fruitas expects to further boost its topline and bottom line with the addition of the Ling Nam brand to its portfolio.
Fruitas owns a network of more than 800 stores but has added 10 additional locations since then.
The group has identified a number of areas for the expansion of its network inside and outside of Metro Manila, one of which is the recently announced Ling Nam restaurant in Zamboanga which will open in the third quarter.
Fruitas’ purchase of legacy brand Ling Nam through Lingnam Food Inc., an indirect wholly-owned subsidiary, was completed on 1 March.
The firm said its entry into the Asian casual dining space will diversify its revenue base.
