• Revenues up 242% to Php84 million from Php25 million in 2Q2021
• 2Q2022 net income Php9 million vs Php2 million in 2Q2021
• 1H2022 revenues of Php145 million vs Php56 million in 1H2021
• 1H2022 EBITDA at Php29 million vs Php4 million in 1H2021 due to better gross margins, continuous business expansion, and improved store performance
• 1H2022 net income of Php15 million, over 18x increase from Php0.8 million in 1H2021
• On track to reach 80 Balai Pandesal stores by end of 2022
Manila, Philippines – Balai ni Fruitas Inc. (BALAI) continued its growth momentum and registered Php145 million of revenues and Php15 million of net income in the first half of 2022.
1H2022 revenue already almost equaled full year 2021 revenue level of Php149 million and 1H2022 net income of Php15 million was well above full-year 2021 net income for 2021 of Php9 million. Revenues for the second quarter 2022 increased by nearly 40% to Php84.5 million compared to first quarter 2022 revenues of Php60.6 million.
Gross margin for 1H2022 remained above 50% despite increasing raw material prices. EBITDA margin was also above 20% for 1H2022 as BALAI continued to benefit from economies of scale and improved store performance. 1H2022 EBITDA was at Php29 million compared to only Php4 million in 1H2021. Net margin was at double digit level for 1H2022, reaching Php15 million compared to only Php0.8 million in 1H2021. Results from Balai Pandesal operations only started to be reflected in June 2021; the addition of Balai Pandesal has driven the Company’s significantly improved financial performance.
The successful listing of BALAI on June 30, 2022, will allow the company to aggressively expand its store network and build new commissaries to have more efficient operations and leaner cost structure. In addition, BALAI is looking to further expand its portfolio through a mix of product brand introductions and potential acquisitions.
As of end-2021, BALAI had 77 stores in its network. During the first of half of 2022, the Company was able to open 7 new stores bringing the total store network to 84. BALAI’s network included 38 Balai Pandesal stores as of June 30, 2022. Apart from stores, Balai Pandesal products can also be accessed in nearly 20 other locations, mostly community stores, through FRUIT’s network. With the Balai Pandesal commissary expected to be functional within 3Q2022, BALAI is on track to increase the number of Balai Pandesal stores to 80 by the end of 2022.
In addition to the community stores, the Company also introduced new store formats for Balai Pandesal such as the first Balai Pandesal local bakery in Brgy. Krus na Ligas, and the first Balai Pandesal kiosk in Ayala Malls Cloverleaf in June 2022. Balai Pandesal also recently introduced a donut line and cake roll line to widen its offerings.
“The successful listing on the SME board of the PSE will allow us to expand faster. We envision Balai Pandesal to be present in major cities of the country and can be easily accessed by Filipinos. The 2022 first half performance is a testament of the ability of the company to face increasing raw material costs and still protect its margins. We shall continue to create new product offerings which will bring happiness to our customers,” said Mr. Lester Yu, Balai Ni Fruitas Inc. President and Chief Executive Officer.