Balai ni Fruitas Inc. (BALAI) continued its growth momentum by posting Php234.1 million revenue and Php23.2 million net income in the first nine months of 2022. 9M2022 revenue increased 2.6x and 9M2022 net income increased 10.2x compared to 9M2021.
The significant increase in revenues is attributed to the ongoing store network expansion of the Balai Pandesal brand which already has 43 stores from 5 stores at time of acquisition in June 2021. In addition, Balai Pandesal products have been made available in more than 20 community stores within the Fruitas Holdings network. This has allowed expansion of Balai Pandesal’s distribution in a very cost-efficient manner. 9M2022 net income surged to Php23.2 million from Php2.3 million in 9M2021 primarily as a result of economies of scale.
Gross profit margin slightly contracted to 50.5% in 9M2022 from 51.5% in 9M2021. The Company executed strategic price adjustments and executed tactical purchasing initiatives to successfully manage increasing raw material prices. EBITDA continued to be strong as BALAI recorded Php16.5 million and Php45.8 million for 3Q2022 and 9M2022, respectively. 9M2022 EBITDA margin stood at 19.5%.
BALAI has started to accelerate the Balai Pandesal store expansion by opening 7 new stores after its Initial Public Offering in June 2022. The 7 new stores within the second half of 2022 are located in various locations within Metro Manila and Metro Cebu in both community store and kiosk formats. As of October 2022, BALAI currently has 91 active stores nationwide of which 43 stores are Balai Pandesal, 39 are Buko Ni Fruitas stores, and 9 are Fruitas House of Desserts stores.
“We have significantly grown the Balai Pandesal brand in just over a year since our acquisition. We aim to make Balai Pandesal the leading mid-priced community bakery in the country. The IPO has provided the Company sufficient resources to further accelerate expansion and grow our capacity and product offerings. We are optimistic with the last quarter of the year and we hope to conclude the year on a high note by encouraging our customers to have BALAI products as part of their festivities,” said Mr. Lester Yu, BALAI President and Chief Executive Officer.
9M2022 vs. 9M2021
|PHP in millions||9M2022||9M2021||% change YoY|
|Net Income (loss)||23.2||2.3||920%|
|Gross Profit Margin||50.5%||51.5%|
|Net Income Margin||9.9%||2.6%|