Balai ni Fruitas Inc., a leader among Philippine counter service bakery operators, posted a 26 percent growth in net income to P52 million in the first nine months of 2024 form the P41 million in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said “This translates to a stable net margin of 11 percent, underscoring BALAI's ability to deliver consistent profitability despite external pressures.
BALAI also registered a 26 percent hike in revenue to P487 million for the first nine months of 2024, from the P387 million reported in the same period last year.
This notable increase was driven by the robust performance of its stores, with the flagship brand, Balai Pandesal, emerging as the primary revenue driver. The brand's continued success can be attributed to the popularity of both its anchor bread products and newer premium offerings.
"I am pleased with Balai ni Fruitas' strong performance in the first nine months of 2024, highlighted by a P100 million revenue growth, a 25 percent increase in gross profit, and a 26 percent rise in net income," said BALAI President and CEO Lester C. Yu.
He added that, “This solid growth reflects the continued popularity of our flagship brand, Balai Pandesal, and the resilience of our business despite economic challenges. Our operational efficiency and strategic expansion, including the addition of Sugarhouse, position us for long-term success.”
The company’s gross profit increased by 25 percent in the first nine months of 2024, reaching P240 million from P192 million in the same period last year.
Despite challenges posed by the broader economic environment such as higher prices for key raw materials, the company demonstrated strong resilience, maintaining a robust gross margin of 49 percent in the first nine months of 2024.
Furthermore, BALAI’s EBITDA margin expanded by two percentage points, rising from 19 percent in 2023 to 21 percent in 2024, reflecting improved operational efficiency.
Balai Pandesal’s bread offerings have become beloved staples for daily breakfasts and snacks, driving strong demand and higher sales growth.
The company’s recent acquisition, Sugarhouse, has also been successfully integrated, expanding the company’s product portfolio and attracting a broader customer base.
As of September 30, 2024, BALAI operated a total of 131 stores, including 64 Balai Pandesal locations, 38 Buko ni Fruitas outlets, 27 House of Desserts branches, and 2 Sugarhouse stores, further expanding its presence in the Philippine market.