Fruitas Holdings, Inc. reported a consolidated net loss of P48 million last year down 140 percent from the net income of P121.5 million in 2019, as revenues fell 54 percent to P892 million from P1.95 billion.
In a disclosure to the Philippine Stock Exchange, the firm said the net loss and lower revenues were due to the restrictions imposed during the lockdown which also resulted in some store closures.
However, Fruitas said it continued its recovery momentum in the fourth quarter of 2020 with consolidated revenues increasing 58 percent to P263 million during the last three months of the year from P167 million in the third quarter.
Revenue performance for the fourth quarter of 2020 was 52 percent lower than in the same quarter of 2019 due to continued mobility restrictions and temporary closure of about 15 percent of its stores.
“This increase in operating performance was a result of an improved gross margin and successful management of its operating costs,” the firm said.
Operating expenses, excluding depreciation and amortization and one-off expenses, increased 39 percent quarter-on-quarter to P139 million in the last quarter of 2020 compared to P100 million in the third quarter of 2020.
“However, the increase in operating expenses was much lower than the comparative 58 percent revenue increase, highlighting the company’s strong ability to boost profits as revenues increase,” Fruitas noted.
While revenues for 2020 fell, the firm said a better sales mix coming from products with lower direct costs allowed the Group to improve gross profit margin for 2020 to 60.0 percent, compared to 58.1 percent in 2019.
Successfully adjusting to the business realities from the lockdowns, Fruitas narrowed its net loss, excluding one-off expenses, to P11 million in the fourth quarter of 2020 from P19 million in the third quarter.
As of end-2020, FRUIT 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.
Fruitas President Lester Yu said “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. These initiatives will contribute to our recovery this year and strong growth in the coming years.”