Fruitas Holdings, Inc. returned to profitability in the second quarter of 2021 as it registered a net income of Php7 million. Revenue further increased to Php263 million in the second quarter of 2021 from Php261 million in the first quarter of 2021. 

Sales contribution from community stores in the second quarter of 2021 already reached 15% in line with continued network expansion even as certain kiosks remained temporarily closed. Fruitas’ network included 67 community stores as of June 30, 2021, which has grown to 80 as of August 15, 2021. This includes franchised Balai Pandesal stores, which came with the acquisition in June 2021, and new Balai Pandesal stores which were subsequently opened. 

For the first half of 2021, revenue reached Php524 million, 13% higher than the Php462 million generated in the first quarter of 2020, but still 44% lower than the Php941 million in the first half of 2019. Despite the significant drop in total revenue versus pre-pandemic levels of 2019,Fruitas’ average daily sales per store has already recovered to about 70% of pre-pandemic level. 

For the second quarter of 2021, Fruitas posted a gross margin at 60.6%, which is better than the 59.2% gross margin in the comparable quarter in 2020 (second quarter of 2020) and 58.1% gross margin in pre-pandemic full year 2019.

Fruitas posted an EBITDA of Php55 million in the second quarter of 2020, its fourth straight quarter of positive EBITDA dating back to the third quarter of 2020. The quarterly EBITDA in the second quarter of 2021 was even higher than the Php54 million registered in the first quarter of 2020, which was largely pre-pandemic.

Positive contribution from the second quarter of 2021 pushed EBITDA to Php69 million in the first half of 2021, and allowed Fruitas to reduce net loss for the first half of 2021 to Php9 million.

Deferred tax assets were reduced by Php10 million, resulting from the reduction in income tax rates, brought about by the CREATE Act in the Philippines. The reduction in income tax rates decreased the value of existing deferred tax assets and increased the total provision for income tax in the second quarter of 2021 but will reduce income taxes on future profits. Fruitas results were also boosted by recognition of fair value gain on investment property that it acquired last year, on which it utilized part of its IPO proceeds. 

“As we record our first quarterly net income since the pandemic, we will continue to ‘quarantine proof’ our business. Our community stores remained resilient and have been instrumental in our push to generate more demand for our products online.

Our wider network now allows easier access to and faster delivery of Fruitas products. It also makes us an attractive partner for other companies which want to target the same consumer base,” Lester Yu, Fruitas Holdings Inc. President and Chief Executive Officer said.