Fruitas Holdings, Inc. (FRUIT) maintained its sales momentum in the first quarter of 2021. Net sales, comprising sales of company-owned kiosks and stores and commissary sales to franchisees, for the first three months of 2021 increased by 1% to Php259 million compared to Php256 million in the fourth quarter of 2020.

This was achieved despite the lack of seasonal uptick from the Christmas season, including lechon sales, in the first quarter of 2021. Sales contribution from additional community stores in 1Q2021 compensated for continued softness in the sales from kiosks in certain parts of the country.

In light of the ongoing pandemic, FRUIT continued to provide some concessions on franchise fees charged to kiosk franchisees and lease charges to third-party tenants in its two foodparks. As such, 1Q2021 total revenues was marginally down by 1% to Php261 million from Php263 million in 4Q2020.

Revenue performance for 1Q2021 was 30% lower than in the same quarter of 2020, which is a significant improvement from the 54% revenue decline for the full year of 2020 compared to 2019. For 1Q2021, FRUIT posted a gross margin at 60.7%, which is better than the 60.0% gross margin in the preceding quarter (4Q2020) and comparable quarter in 2020 (1Q2020).

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. FRUIT considered the ability to manufacture its own products as one of the key criteria when it decided to acquire Jamaican Pattie, Sabroso Lechon, Soy & Bean (formerly The Tofu Store), and most recently, Balai Pandesal. FRUIT currently has three commissary locations across Metro Manila.
FRUIT posted EBITDA of Php15 million in 1Q2021, its third straight quarter of positive EBITDA dating back to 3Q2020. The 1Q2021 EBITDA of Php15 million is equal to the level registered in 4Q2020, after taking into account the non-recurring allowance for doubtful accounts on receivables of Php5 million in 4Q2020. FRUIT registered a net loss of Php16 million in 1Q2021, also in line with the 4Q2020 level, but a reversal from a net profit of Php15 million in 1Q2020.

FRUIT had more than 810 operational stores in its network in March 2021 prior to the re-imposition of stricter movement restrictions in the second half of March 2021. FRUIT’s network included 41 community stores as of March 31, 2021, which has grown to 52 as of May 31, 2021. With the recently announced acquisition of certain assets of Balai Pandesal, FRUIT is targeting to have 120 stores in local communities, comprising 100 community stores carrying the Soy & Bean or Babot’s Farm brand and 20 Balai Pandesal bakeshops, by the end of 2021.

“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,” said Mr. Lester Yu, Fruitas Holdings Inc. President and Chief Executive Officer.