FRUIT bounty

While the agriculture sector overall is backsliding into slow growth, food processing is showing strong gains.

A mixed economic landscape will not hurt beverage brands such as the fresh juice line of Fruitas Holdings Inc. (FRUIT) which is expected to show strong results this year after a strong nine months of results driven by continuous expansion and improved margins.

The downside of projections involve potential risks arising from slower GDP growth, peso depreciation, and the inflation rate, according to Regina Capital Development Corp.

FRUIT realized a surge in the first nine months as it managed to book a net income of P94.75 million, up 34.91 percent from a year ago driven mainly by a higher revenue of P2.12 billion until the third quarter, up 18.56 percent, resulting from the ongoing expansion of the store network and improved performance at existing locations.

FRUIT is ramping up its expansion with a P750-million capital expenditures (capex) budget for 2024, up from P500 million last year.

The funds will support the addition of 50 stores, commissary enhancements and acquisitions, building on its portfolio of over 30 brands, including Fruitas, Ling Nam and Sugarhouse.

FRUIT is also exploiting digital platforms like BalaiMart and third-party delivery services to meet growing consumer demand for online food delivery.

Recent acquisitions and a P200-million corporate note issuance underline its commitment to growth and diversification.