Fruitas Holdings, Inc. (FRUIT) reported that it is on the road to recovery in the third quarter of 2020 as it expects to reap the rewards of its continuing business transformation in the last quarter and the coming years.
In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues increased 90 percent quarter-on-quarter to P167 million from P88 million in the second quarter of 2020.
“We are glad to see that sales are recovering strongly as quarantine restrictions continue to ease. In the meantime, we have not relented in transforming our business,” said FHI President and Chief Executive Officer Lester Yu.
He added that, “We have opened numerous channels so our customers can reach us easier and faster. We are also excited with the performance of our community stores, which will be a growth engine moving forward.”
Yu noted that, “Once the economy is back in full gear, we are confident that a stronger Fruitas will be a key beneficiary.”
Fruitas said its third quarter 2020 revenues were 63 percent lower than the same quarter last year. Despite this, it posted a positive EBITDA of P4 million in the third quarter of 2020, as it improved its gross margin and reined in its operating costs.
The Group slashed operating expenses, excluding depreciation and amortization, by 56 percent from P229 million in the third quarter of 2019 to only P102 million in the same period this year, highlighting its operational flexibility.
Consolidated revenues for the first nine months of 2020 declined by 55 percent to P629 million from P1.39 billion in the same period last year.
Better sales mix coming from products with lower direct costs allowed the Group to improve gross profit margin for the first nine months of 2020 to 60.0 percent, compared to 58.4 percent during the same period last year.
Fruitas narrowed its net loss to P19 million in the third quarter of 2020 from P27 million in the previous quarter, with nine-month 2020 net loss at P32 million.
As of September 30, 2020, FRUIT re-opened around 700 stores and since then, has re-opened more than 100 additional stores in October and early November.
The temporary closures of the other remaining stores have been largely initiated by the lessors (including those located in certain schools, office buildings, foodcourts and near cinemas). Fruitas said it is prepared to re-open these stores as restrictions are lifted.
While the quarantine was in place and kiosk operations were hampered, Fruitas sought to widen the channels through which customers can order its products. Revenue contribution from these channels is expected to further increase as FRUIT further deepens its customer contact through these channels.