Fruitas hikes 2021 capex, readies expansion abroad

MANILA, Philippines — Fruitas Holdings Inc. is preparing for a strong rebound this year with the possibilitity of expanding abroad.

It is setting aside up to P270 million for capital expenditures (capex) this year, of which P150 million will be allotted for network expansion, P100 million for acquisitions and development of new concepts and P20 million for commissary expansion.

This year’s capex is about P50 million more than last year’s allocation of P220 million.

Fruitas targets to add at least 100 kiosks and 70 community stores this year, boosting the  network to about 1,100 kiosks and 100 community stores by the end of the year.

It will expand community stores beyond Metro Manila to include key cities in Luzon, Visayas and Mindanao.

Fruitas also expects to launch at least two new concepts as early as the first quarter.

The company is also in discussions with potential product partners to widen the sales channels of Fruitas products.

The enhancement of its delivery channel continues, with plans to expand delivery beyond Metro Manila and Cebu in the near-term.

Certain community stores will formally be designated as delivery hubs to shorten turnaround time.

The overseas expansion, meanwhile, will initially focus on Asia as Fruitas looks for potential targets in the region but in a disciplined manner.

It is also continuing to finetune existing processes from site selection to sales delivery to improve margins, Fruitas Holdings president Lester Yu said.

Yu said the company experienced a setback in 2020 but was able to maximize opportunities despite the situation.

“We had a temporary setback in terms of operating results in 2020, but we were able to successfully execute numerous initiatives to broaden product breadth and client reach. There are still abundant opportunities to generate growth and improve margins. Our stronger footing post-pandemic makes us confident about 2021,” Yu said.

Revenues in the fourth quarter of 2020 increased by around 60 percent after registering 90 percent quarter-on-quarter revenue growth in the third quarter.