Fruitas Holdings, Inc., a leading operator of multi-format food and beverage stores, is launching a ₱100-million share buyback program, demonstrating confidence in its prospects and aiming to enhance shareholder value.

In a disclosure to the Philippine Stock Exchange, the company said its board of directors approved the repurchase of Fruitas shares on the open market for one year, subject to extension.

"This share repurchase initiative reaffirms our confidence in Fruitas Holdings' sustained growth and our unwavering dedication to maximizing shareholder value," Fruitas President and CEO Lester Yu said in a text message. "By buying back shares, we are also able to return a greater portion of our capital to our shareholders."

Fruitas assured that the program, funded by internal resources, will not affect any of the company’s prospective and existing projects and investments.

Fruitas’ share price jumped 16.67 percent to ₱0.70 from ₱0.60 in the first few minutes of trading after the announcement.

The company currently has 2.13 billion issued and outstanding shares listed with the PSE, with 869.38 million shares (40.75 percent) held by the public as of December 31, 2024.

Based on the ₱0.61 closing price as of January 31, 2025, the program could acquire 163.93 million shares, potentially reducing public ownership to 705.45 million shares (35.81 percent) and outstanding shares to 1.97 billion.

Fruitas reported a 35 percent year-on-year growth in consolidated net income to ₱95 million for the first nine months of 2024, up from ₱70 million in the same period of 2023. Sales reached a record ₱2.12 billion, a 19 percent increase from ₱1.79 billion in the same period of 2023.

As of Sept. 30, 2024, the company had 851 stores nationwide, comprising 732 kiosks/carts/in-line stores, 105 community stores, and 14 cloud kitchens and restaurants.

Same-store sales growth (SSSG) improved by 10.7 percent year-on-year, primarily driven by the Fruitas brand. Ling Nam, its flagship dining brand, and Balai Pandesal, a leading pastry brand, also contributed significantly to revenue growth.

Notably, Ling Nam Food Inc. (LFI), a subsidiary, expanded its number of locations by 114 percent to 45 from 21 in the same period of 2023.

“Our performance over the past nine months has been outstanding, both in terms of revenue growth and operational efficiency,” Yu said. “This success is a direct result of our unwavering commitment to enhancing our product offerings and delivering the highest-quality world-class ‘Made by Filipinos’ products to our valued consumers.”

“As we enter the final quarter of 2024, the Fruitas team is excited to further expand our presence nationwide, making our wide range of Fruitas products even more accessible to our customers,” he added.