1 month ago
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Fruitas Holdings, Inc., a leading operator of multi-format food and beverage stores, is creating and implementing a P100 million share buyback program in a show of confidence in its prospects as well as enhance shareholder value.
In a disclosure to the Philippine Stock Exchange, the firm said its board of directors has approved the repurchase of Fruitas shares from the open market for a period of one year but subject to extension.
Fruitas President and CEO Lester Yu said in a text message that, "This share repurchase initiative reaffirms our confidence in Fruitas Holdings' sustained growth and our unwavering dedication to maximizing shareholder value. By buying back shares we are also able to return a greater portion of our capital to our shareholders."
“The share buyback program will not affect any of the Company’s prospective and existing projects and investments,” Fruitas assured adding that
the program will be using internal funds.
Fruitas’ share price jumped 16.67 percent to P0.70 per share from P0.60 per share in the first few minutes of trading after the share buyback program was announced.
The firm currently has 2.13 billion issued and outstanding shares listed with the PSE with 869.38 million shares equivalent to 40.75 percent owned by the public as of December 31, 2024.
Fruitas said the potential number of shares to be acquired under the program (based on P0.61 closing price as of January 31, 2025) is 163.93 million shares.
The buyback will potentially bring down public ownership to 705.45 million shares or 35.81 percent while its outstanding shares will be reduced to 1.97 billion shares.
Fruitas delivered a 35 percent growth in consolidated net income to P95 million for the first nine months of 2024 from P70 million in the same period of 2023.
The firm achieved a record-breaking P2.12 billion in sales for the first nine months of 2024, representing a 19 percent increase from P1.79 billion in the same period in 2023.
As of September 30, 2024, the company reported a total of 851 stores nationwide. This includes 732 kiosks/carts/in- line stores, 105 community stores, and 14 cloud kitchens and restaurants, highlighting the company's broad reach and adaptability to various market segments.
Fruitas' same-store sales growth (SSSG) improved by 10.7 percent year-over-year (YoY), driven primarily by its Fruitas brand, which includes a popular range of fruit-based juices, shakes, and other offerings.
In addition, Ling Nam, the company’s flagship brand in the dining sector, and Balai Pandesal, a leading brand in the pastry segment, were pivotal in driving the strong revenue performance.
Notably, Ling Nam Food Inc. (LFI), a subsidiary of Fruitas, experienced remarkable expansion, increasing its number of locations by 114 percent, to 45 current locations from 21 in the same period of 2023.
“Our performance over the past nine months has been outstanding, both in terms of revenue growth and operational efficiency. This success is a direct result of our unwavering commitment to enhancing our product offerings and delivering the highest-quality world-class ‘Made by Filipinos’ products to our valued consumers,” said Yu.
He noted that, “As we enter the final quarter of 2024, the Fruitas team is excited to further expand our presence nationwide, making our wide range of Fruitas products even more accessible to our customers.”
