LISTED food and beverage kiosk operator Fruitas Holdings, Inc. said it plans to improve yearly revenues to P5 billion and annual net income to P500 million on or before 2025.
In a statement on Monday, the company said its revenue and net income targets will be achieved by expanding its store network to at least 2,000 locations.
Fruitas said its business plan to achieve the targets will include the fortification of leadership positions, innovation of existing products, venturing into new products and geographical regions, expanding kiosk and community store network, and sharpening existing processes to improve margins.
According to the company, it plans to copy the revenue growth achieved from 2015 to 2019, when revenues rose to P1.95 billion in 2019, against P310 million in 2015.
In 2019, the company’s total revenues amounted to P1.95 billion, higher than the P1.58 billion posted in 2018. Meanwhile, the net income of Fruitas in 2019 rose 21.2% to P121.53 million against P100.30 million in the previous year.
“Fruitas expects a strong rebound in 2021, and targets to register average annual revenue growth of 30%-40% thereafter up to 2025. It also aims to increase net margin from around 6% in 2019 to 10% by 2025,” the company said.
Fruitas President and Chief Executive Officer Lester C. Yu said he is confident that the company will achieve or surpass its targets for the medium-term.
“We have encountered similar challenges in the past and have overcome them by relying on our strengths. We continue to be mindful of near-term risks and fast-evolving client preferences. But we remain nimble to adjust our business model and take advantage of opportunities,” Mr. Yu was quoted as saying.
Recently, Fruitas has allotted P240 million to P270 million for its capital expenditure budget for 2021.
From the figure, P150 million is earmarked for network expansion, P70 million to P100 million for acquisitions and development of new concepts, and P20 million for commissary expansion.
Fruitas added that it eyes an additional 100 kiosks and 70 community stores this year. If realized, the new stores will bring the company’s total store count to 1,100 kiosks and 100 community stores by the end of 2021.
During the third quarter of 2020, the company managed to cut losses to P19 million on the back of higher consolidated revenues and lower operating expenses.
On Monday, Fruitas shares at the stock exchange rose 2.31% or four centavos to close at P1.77 each. — Revin Mikhael D. Ochave