Fruitas Holdings Inc. said it expects better cash position with the completion of its P1.01 billion initial public offering (IPO).
The company said the estimated P820 million net proceeds “will boost cash balances and cut debt levels.”
“On a pro forma basis and based on its latest audited financial statements as of June 30, 2019, consolidated cash balance exceeded P1 billion immediately post-IPO. Even after the planned debt repayment of P150 million, pro forma cash balance of approximately P850 million will far exceed the notes payable balance, which is expected to be halved from around P409 million to just above P200 million by end of the year, using IPO proceeds and internally generated cash,” the company said.
“We expect that our liabilities-to-equity ratio to improve from 1.6x as of June 30, 2019, to below 0.5x by end of the year. In addition, our cash reserves place us in a very strong position to take advantage of the significant growth opportunities that are presented to us,” said Calvin Chua, Fruitas Holdings director.
Chua said while Fruitas has nearly quadrupled its store network from 260 as of end-2015 to 1,036 just before listing, “we believe there is still significant potential for expansion for both our leader and challenger brands.”
“Our revenue growth of above 20 percent growth in the first half of the year is expected to be sustained until end of the year,” he added.
Chua said Fruitas’ highly scalable business model and strong revenue growth differentiate it from other listed foodservice peers, which have only registered single-digit percentage revenue growth for the first nine months of 2019 due to various factors.