Balai ni Fruitas Inc., a leading Philippine counter service bakery operator, reported that its net income jumped 77 percent to P41 million in the first nine months of 2023 from P23 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm aid it continued its growth momentum in the first nine months of 2023 by posting a65 percent hike in revenues to P387 million from P234 million in the comparative period last year.

“With BALAI's performance in the first nine months of this year, we are really happy, as it has given us not only good results but also a strong foundation for the future,” said Balai President and CEO Lester Yu. 

He noted that, “As the year's final quarter approaches, we are determined to build on our outstanding financial success and end on a positive note. We'll keep growing our network and developing innovative products so that Balai becomes a mainstay in our clients' daily lives and is a part of their celebrations.”

For the third quarter, revenues are up to 55 percent to 138 milion from 89 million while and net income nearly doubled to P16.3 million from P8.5 million in the same period last year.

“The constant growth is fueled by the continuous store network expansion and improved retail performance,” Balai said. 

In spite of strong inflationary pressures that drove up the price of raw materials, the gross margin settled at 50 percent, which is slightly lower than the 51 percent gross margin in the first nine months of 2022. 

In order to control costs, BALAI not only implemented strategic price increases but also broadened its supplier base and enhanced the sourcing of raw materials. 

Balai was able to launch new products and expand its retail network more quickly attributed to its solid cash position. It continues to exemplify its ability to generate cash through the effectiveness of its store operations.

As of the end of the third quarter of 2023, Balai has a total of 115 stores. The Company added four new stores since the start of the last quarter of the year bringing the total stores to 119 as of Nov. 7, 2023.