FRUITAS Holdings, Inc. allocated P240 million to P270 million for its capital spending program in 2021 to finance its growth and potential acquisition plans.
In a statement on Thursday, the food and beverage kiosk operator suggested that some P150 million of this total would be allocated for network growth, while P70 million would be allocated to P100 million for acquisitions and creation of innovative concepts, and P20 million would be allocated for commissary expansion.
Fruitas did not announce how much it invested last year, but at the beginning of 2020, the firm announced the same sum of capital expenditure (capex) as this year.
Fruitas said that it plans to introduce at least 100 kiosks and 70 neighborhood stores to its network in 2021. If realized, the overall number of stores in the business would hit 1,100 kiosks and 100 neighborhood stores by the end of the year.
The business added that it expects to debut two new formats by the first quarter of 2021 and hopes to extend neighborhood stores beyond Metro Manila to cover major cities throughout the Philippines.
“The rise in kiosks would come from both additional locations for their established products and new kiosks for their evolving concepts,” Fruitas said in the announcement.
In addition, the company reported that it was tracking opportunities for the acquisition of potential goals and expansion outside the region, initially within Asia.
“The business is still seeking to fine-tune internal procedures, from location availability to sales execution, to increase margins,” Fruitas said.
In the meantime, Fruitas has stated that it is working with prospective product suppliers to provide new goods that will be distributed in its network, as well as with marketing partners to expand the market networks of the company’s goods.
The business announced that it aims to extend existing distribution networks outside Metro Manila and Cebu in the near term, adding that a range of neighborhood stores would be appointed as delivery hubs to minimize processing time.
Lester C. Yu, President and CEO of Fruitas Holdings, said that the company was optimistic going to 2021 because of its better foothold in the aftermath of the pandemic.
“We had a brief setback in terms of financial performance in 2020, but we were able to effectively introduce a range of measures to extend product breadth and reach our consumers. There are still plenty of ways to generate growth and boost margins,” Mr. Yu said.