By Richmond Mercurio
The Philippine Star / 12:00 AM February 5, 2025
https://www.philstar.com/business/2025/02/05/2419184/fruitas-embarking-p100-million-share-buyback
MANILA, Philippines — Fruitas Holdings Inc. of businessman Lester Yu is poised to buy back P100 million worth of the company’s common shares in a move to enhance shareholder value.
The listed operator of multi-format food and beverage stores said the company’s board has approved the creation and implementation of the share buyback program with an initial term of one year.
The share buyback program is subject to extension by approval of its board of directors.
Fruitas said the share buyback program would not affect any of the company’s prospective and existing projects and investments.
The company will use internally generated funds to finance the share buyback.
“The objectives of the share buyback program are to enhance shareholder value and to manifest confidence in the company’s value and prospects through the repurchase of the common shares of the company and through the return of a portion of the company’s capital to its shareholders,” Fruitas said.
Fruitas currently has 2.13 billion outstanding shares, with 869.38 million shares or 40.75 percent owned by the public as of end–2024.
Based on its P0.61 closing price as of Jan. 31, Fruitas said there are 163.93 million potential shares to be acquired under the program.
Post-share buyback, Fruitas expects its number of outstanding shares to be at 1.97 billion, with the potential number of shares held by the public to reach 705.45 million or 35.81 percent.
Fruitas is set to invest P500 million for capital expenditures this year to drive the company’s growth.
The allocation includes approximately 50 percent for commissary infrastructure and logistics upgrades, 40 percent for store expansions and 10 percent for brand acquisitions and development.
The company targets to open 100 new stores in 2025, as part of its ongoing strategy to expand its footprint and serve a wider customer base.
Fruitas, a leader in food and beverage stores across multiple formats, operates over 30 brands in its portfolio, with a total of 851 stores nationwide as of end September 2024.
Fruitas saw its share price close 11.67 percent higher to P0.67 apiece yesterday. Its 52-week low stands at P0.60 while its 52-week high is at P0.88.
