Insider Spotlight
Lucio Tan-backed Philippine National Bank extended the credit line on Friday, giving Fruitas room to add stores, widen its product mix and pursue opportunities in the Philippines and even overseas.
The loan bankrolls the next leap for a business Yu started nearly 25 years ago with a single fruit-shake kiosk, long before Fruitas grew into a nationwide collection of bakeries, restaurants, community stores and institutional kitchens.
Sales provide cover
“Ang buenas namin ngayon [We’re fortunate right now],” Yu told reporters on the sidelines of the signing ceremony on Friday.
The firm is keeping its target to grow sales by 20 percent. This is being backed by recent numbers, with sales holding up in August despite storms disrupting mall outlets, before climbing about 20 percent in September.
Margins remain under pressure, however, forcing Fruitas to control costs while keeping its expansion plans intact.
Fruitas grew first-half revenue by 19 percent to P1.7 billion, but the stronger sales failed to carry through to the bottom line as net income slipped 10 percent.
Strong fourth quarter
“Q4 [the fourth quarter]is our season, that’s why we are confident,” Yu said, pointing to holiday demand for its juice kiosks and a Saboroso lechon business attracting a growing base of repeat customers.
Fruitas is defying weaker consumer spending, giving Yu hard numbers behind his confidence.
The next lift could come from election spending, which begins building in 2027 ahead of the presidential vote and has historically boosted the company’s sales.
Moving while others wait
The PNB facility gives Fruitas room to expand while other businesses hold back given the uncertain economic climate.
“It’s very seldom you get the right formula, something that clicks with the customer,” said Edwin Bautista, the president and CEO who began his career at multinational consumer goods giant Procter & Gamble.
“I think the market for these products [of Fruitas] is willing to pay. That’s the thing, the big difference,” Bautista said.
“So you can strike now when your competitors are not doing anything, then you are in a perfect position,” he added.
Calvin Ong, Fruitas director, said the company was looking at partnerships that could bring foreign brands into the Philippines or take Fruitas concepts overseas.
These include bringing in new technology that could extend the shelf life of products—crucial as the firm eyes bigger exports to markets like the United States.
Catering emerges as a growth engine
Fruitas also found an unexpected growth business in catering after acquiring Sugarhouse, via sub subsidiary Balai Ni Fruitas, which it initially viewed mainly as a retail brand.
Yu said corporate catering has since become a sizable operation, generating daily orders from offices including JPMorgan and Accenture.
The group is widening the menu with Chinese food under Ling Nam and Saboroso lechon, allowing Fruitas to push more of its brands through the same institutional channel.
—Edited by Miguel R. Camus
