P48M loss: Lester Yu’s Fruitas tanked 140% in 2020 | Bilyonaryo Business News

P48M loss: Lester Yu’s Fruitas tanked 140% in 2020

Fruitas Holdings of businessman Lester Yu got walloped by the pandemic in 2020.

The food and beverage kiosk operator lost P48 million last year, down by 140 percent from P120.7 million a year ago.

Revenues plunged by 53 percent to P891.8 million last year.

Fruitas said it was not “practicable” to forecast the lingering coronavirus pandemic on its operations for 2021.

“The country’s economic recovery is dependent on measures adopted by the national government such as quarantine, travel restrictions and any economic stimulus that may be provided. The group implemented initiatives to improve its cash position and liquidity…Management believes that these initiatives can overcome the impact of the COVID-19 pandemic. It is projecting a turnaround with positive results of the group’s operations in the coming years,” said Fruitas.

Fruitas last traded at 18 percent below its initial public offering price of P1.68. The company raised P896.548 million from its IPO in 2019, of which it has already spent P648 million.

Fruitas used P142.4 million of its proceeds to buy a head office – a five-story building in Sta. Mesa, Manil owned by the Philippine Bible Society in November 2020.

Fruitas justified the purchase of the property amid the pandemic: “Given the current low-yield environment, the company decided to invest in assets which can provide higher returns, consolidate certain back-office operations and also generate rental income from tenants of potential excess space. In the long-run, we also expect the asset will have capital appreciation.”

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