Balai ni Fruitas, the bakery subsidiary of Fruitas Holdings, is expanding its reach in the Visayas region by putting up a commissary in Tisa, Cebu City while continuing to increase capacity in Metro Manila.

To fund these, Balai ni Fruitas informed the Philippine Stock Exchange (PSE) that it is increasing the allocation of funds raised from its initial public offering for the commissaries by 83 percent to P110 million form P50 million.

The firm said it has approved the re-allocation of its IPO proceeds, increasing the amount allocated for commissary set-up with the P50 million increase coming from the allocation for store network expansion and store improvement.

“The purpose of the additional allocation of IPO proceeds to Commissary Set Up is to reduce the need for further loans and help the company avoid interest expense for the N. Domingo Commissary Set Up,” Balai ni Fruitas said. 

Part of increase in the allocation for Commissary Set-Up will also be used in the planned construction of the 162 square meter Balai Commissary located at 24 Naya Village Tisa Cebu City to expand the capacity for Balai Products in the Visayas Region. The new commissary is expected to be completed within the year.

Balai ni Fruitas 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.

The firm said 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.

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. 

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 November 7, 2023.