LISTED food and beverage kiosk operator Fruitas Holdings, Inc. said it plans to increase annual sales to P5 billion and net annual revenues to P500 million on or before 2025.
In a statement on Monday, the company confirmed that its sales and net revenue goals would be reached by expanding its store network to at least 2,000 locations.
Fruitas aims at P5-B annual sales by 2025.
Fruitas indicated that its business strategy to achieve the objectives would include the strengthening of leadership roles, the advancement of existing products, the opening up of new products and geographic regions, the extension of the kiosk and community store network and the sharpening of existing processes to increase margins.
According to the firm, it plans to repeat the sales growth achieved from 2015 to 2019, with revenues increasing to P1.95 billion in 2019, compared to P310 million in 2015.
In 2019, the company’s overall sales amounted to P1.95 billion, up from P1.58 billion in 2018. In the meantime, Fruitas’ net income rose by 21,2% to P121,53 million in 2019, compared to P100,30 million in the previous year.
“Fruitas expects a quick recovery in 2021 and plans to report average annual sales growth of 30 per cent-40 per cent by 2025. It also aims to raise the net margin from about 6 percent by 2019 to 10 percent by 2025,” the company said.
Fruitas President and Chief Executive Officer Lester C. Yu said he was optimistic that the organization would meet or exceed its medium-term objectives.
“We have faced similar challenges in the past, and we have resolved them by relying on our strengths. We remain aware of near-term uncertainties and fast-moving client preferences. But we remain nimble to adapt our business model and take advantage of opportunities,” Mr. Yu said.
Fruitas has recently allocated P240 million to P270 million for its capital expenditure budget for 2021.
Out of this number, P150 million is allocated to network expansion, P70 million to P100 million to acquisition and development of new concepts, and P20 million to Commissioner expansion.
Fruitas added that he’s looking at an additional 100 kiosks and 70 neighborhood stores this year. If realized, the new stores would bring the company’s total number of stores to 1,100 kiosks and 100 neighborhood stores by the end of 2021.
In the third quarter of 2020, the company managed to minimize losses to P19 million due to higher combined sales and lower operating costs.