Food and beverage kiosks operator Fruitas Holdings Inc. said it incurred a net loss of P16 million in the three months of the year ending March 31, a reversal of its P15-million income last year as sales came in flat.
Net sales, which comprise cash coming from the company-owned stores and commissary sales to franchisees, for the period came in at P259 million, flat compared with last year’s P256 million.
Sales contribution from additional community stores during the quarter compensated for continued softness in the sales from kiosks in certain parts of the country.
Revenues, meanwhile, were down 30 percent to P261 million from last year’s P374 million. The company said it continued to provide some concessions on franchise fees charged to kiosk franchisees and lease charges to third-party tenants in its two food parks.
“In these trying times, we believe it is important to continue to invest in our future. As the economy re-opens, we want to be well-positioned to take advantage of renewed consumer interest and we believe our efforts to grow and diversify our business will pay off,” Lester Yu, Fruitas president and CEO, said.
The company had more than 810 operational stores in its network in March prior to the re-imposition of stricter movement restrictions in the second half of the month. Its network included 41 community stores as of March 31, which has grown to 52 as of end-May.
With the recently announced acquisition of certain assets of Balai Pandesal, the company is targeting to have 120 stores in local communities, comprising 100 community stores carrying the Soy and Bean or Babot’s Farm brand and 20 Balai Pandesal bakeshops, by the end of 2021.
“As a bottler/manufacturer of its key products, including fruit juices, soy milk and other soy-based products, and Jamaican Pattie, FRUIT recognizes that improving its gross margins will be a key lever to achieve its profit goals moving forward,” it said.
The company said it considered the ability to manufacture its own products as one of the key criteria when it decided to acquire Jamaican Pattie, Sabroso Lechon, Soy and Bean, and most recently, Balai Pandesal. The company currently has three commissary locations across Metro Manila.