Fruitas Holdings, Inc. continued its recovery momentum in the fourth quarter of 2020. Consolidated revenues increased 58% to Php263 million during the last three months of the year from Php167 million in the third quarter. Full-year net loss for 2020 was at Php48 million on revenue of Php892 million.
Revenue performance for 4Q2020 was 52% lower than in the same quarter of 2019 due to continued mobility restrictions and temporary closure of about 15% of its stores. Despite this, Fruitas posted a positive EBITDA of Php19 million in 4Q2020, a significant improvement from Php4 million in 3Q2020.
This increase in operating performance was a result of an improved gross margin and successful management of its operating costs. Operating expenses, excluding depreciation and amortization and one-off expenses, increased 39% quarter-on-quarter to Php139 million in 4Q2020 compared to Php100 million in 3Q2020. However, the increase in operating expenses was much lower than the comparative 58% revenue increase, highlighting the company’s strong ability to boost profits as revenues increase.
The difficulties of 2020 were reflected in the consolidated 2020 revenues declining by 54% to Php892 million from Php1,945 million in 2019. Yet, a better sales mix coming from products with lower direct costs allowed the Group to improve gross profit margin for 2020 to 60.0%, compared to 58.1% in 2019.
Successfully adjusting to the business realities from the lockdowns, Fruitas narrowed its net loss, excluding one-off expenses, to Php11 million in 4Q2020 from Php19 million in 3Q2020. To reflect uncertainties affecting some franchisees in the current environment, the Group booked a non-recurring allowance for doubtful accounts on its receivables of Php5 million in 4Q2020.
As of end-2020, Fruitas re-opened 819 stores. More than 150 stores remained temporarily closed largely on the initiation of the lessors (including those located in certain schools, office buildings, food courts and near cinemas). FRUIT is prepared to re-open these stores as restrictions are lifted.
As the end of 2020, Fruitas has opened 30 community stores, under the Babot’s Farm and Soy & Bean brands. Barring any delays from community quarantine restrictions, Fruitas is targeting to have 50 Babot’s Farm and Soy & Bean stores by the end of April. As previously disclosed, community stores are now contributing approximately ten percent of revenues, which will further expand. FRUIT is on track to increase the number of its community stores to 100 through 2021.
“2020 was a challenging year of personal hardship for all Filipinos. In business, the food service sector was significantly affected. Like many others in support of our employees and our nation’s economy, we adapted quickly by expanding service channels and adding products. Our customers were able to benefit from our in-house delivery service. We invested in building a community store network. Our Soy & Bean products, premium dairy-based ice cream and premium soy-based ice cream have become an integral part of our product suite. These initiatives will contribute to our recovery this year and strong growth in the coming years,” said Mr. Lester Yu, Fruitas Holdings Inc. President and Chief Executive Officer.
Fruitas Holdings, Inc. is the Philippines’ leading food and beverage kiosk operator and is listed on the Philippine Stock Exchange under the symbol Fruitas.
