FOOD and beverage kiosk operator Fruitas Holdings, Inc. said it hopes to continue its acquisition spree as it expands its brand portfolio.
“What we are looking at would still be along the lines of our businesses,” Fruitas Chief Financial Adviser Calvin F. Chua said during the Money Talks with Cathy Yang program on One News Channel when asked about the company’s acquisition plans.
“Beverages would be one, and maybe extending into food-based products and using that to supplement the product mix in our community stores,” he added.
In January, Fruitas said it had earmarked P500 million for its capital expenditure (capex) budget this year, with 10% allocated for brand acquisitions and development.
It added that 50% of the budget is for commissary infrastructure and logistics upgrades, while 40% is for store expansions. The company aims to open 100 stores this year.
In November last year, Fruitas acquired a 60% stake in the Mang Bok’s brand for P8.86 million, marking its entry into the roasted chicken segment.
Fruitas’ subsidiary Balai ni Fruitas, Inc. also completed its purchase of the Sugarhouse cake and pastry brand in May last year.
In 2023, Fruitas acquired the Ling Nam noodle house brand and the Fly Kitchen cloud kitchen company.
Meanwhile, Mr. Chua said the company’s planned P100-million share buyback program allows for potential partnerships.
“If there’s somebody who might want to enter the company later on at higher valuations, we won’t shy away from realizing value. If you look at foreign investors in the country, food, beverage, and healthcare would probably be at the top of the list,” he said.
Last month, Fruitas said its board approved the share buyback program to boost shareholder value.
As of end-2024, Fruitas had a 40.75% public float, equivalent to 869.38 million publicly owned shares.
Fruitas said the share buyback program could potentially acquire 163.93 million shares based on the company’s closing share price of 61 centavos apiece on Jan. 31.
Once the share buyback program is completed, Fruitas said its public float could drop to 35.81%, corresponding to 705.45 million publicly owned shares.
Fruitas has 2.13 billion issued, outstanding, and listed shares. The share buyback program could potentially reduce its outstanding shares to 1.97 billion.
The share buyback program will have an initial term of one year, which could be extended upon board approval, Fruitas said.
On Monday, Fruitas shares fell by 1.49% or one centavo to 66 centavos each. — Revin Mikhael D. Ochave
