Food and beverage kiosk operator Fruitas Holdings Inc. on Monday said it is targeting to increase its income by 5 times and to more than double its revenues through 2025.
The company said it is targeting to record a net income of P500 million within the 5-year period, from the current annual earnings of more than P100 million. Revenues, meanwhile, are expected to jump to about P5 billion from the P2 billion it posted in 2019.
The company said it needs to expand its network to about 2,000 locations by 2025, or double its current number of kiosks and store network.
“We are confident that we will be able to achieve or even exceed our medium-term targets. We have encountered similar challenges in the past and have overcome them by relying on our strengths. We continue to be mindful of near-term risks and fast-evolving client preferences. But we remain nimble to adjust our business model and take advantage of opportunities,” Lester Yu, the company’s president and CEO, said.
For the three quarters of 2020, the company’s revenues reached P628.61 million or just half of the previous year’s P1.39 billion, as the pandemic took its toll on its operations.
For the same period, it posted a loss of P32.22 million, down from the previous year’s income of P53 million.
Fruitas said it expects a strong rebound this year and said it is targeting to register an average annual revenue growth of 30 percent to 40 percent every year through 2025.
“Fruitas intends to mirror the revenue growth trajectory from 2015 to 2019 when it grew revenues from P310 million in 2015 to P1.95 billion in 2019. It also aims to increase net margin from around 6 percent in 2019 to 10 percent by 2025,” the company said.
To do this, the company said it needs to fortify and seize leadership positions in other product segments, innovate on existing products, venture into both new products and geographical regions, expand its network of kiosks and stores and sharpen existing processes to increase margins.
Fruitas earlier said it has allocated between P240 million to P270 million in capital expenditures this year, a chunk of which will be used for its expansion and acquisition of another firm.
The company said it will add at least 100 kiosks and 70 community stores to its network this year and expand its network to 1,100 kiosks and 100 community stores by the end of 2021.