FRUITAS Holdings, Inc. has allotted P240 million to P270 million for its capital expenditure budget in 2021 to fund its expansion and future acquisition plans.
In a statement on Thursday, the listed food and beverage kiosk operator said that from the amount, some P150 million will be allocated for network expansion, while P70 million to P100 million will be for acquisitions and development of new concepts, and P20 million for commissary expansion.
Fruitas did not disclose how much it spent last year, but in early 2020, the company quoted around the same capital expenditure (capex) range as this year.
Fruitas said it plans to add at least 100 kiosks and 70 community stores to its network in 2021. If realized, it will bring the company’s total store count to 1,100 kiosks and 100 community stores by the end of the year.
The company added that it plans to launch two new concepts by the first quarter of 2021 and targets to expand community stores outside Metro Manila to include key cities across the Philippines.
“The increase in kiosks will come from both additional locations for its existing brands and new kiosks for its emerging concepts,” Fruitas said in the statement.
Further, the company said it was checking prospects to acquire potential targets and expand outside the country, initially within Asia.
“The company is also continuing to fine tune existing processes, from site selection to sales delivery, to improve margins,” Fruitas said.
Meanwhile, Fruitas said it was consulting with potential product partners to include additional items that will be sold in its network, and also with distribution partners to broaden the sales channels of the company’s products.
The company said that it has plans to expand current delivery channels beyond Metro Manila and Cebu in the near-term, adding that a number of community stores will be designated as delivery hubs to reduce turnaround time.
Fruitas Holdings President and CEO Lester C. Yu said the company is confident heading to 2021 due to its stronger footing amid the pandemic.
“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,” Mr. Yu was quoted as saying.
On Thursday, Fruitas shares at the stock exchange rose 0.57% or one centavo to close at P1.75 per piece. — Revin Mikhael D. Ochave