BALAI NI FRUITAS, INC. is primarily engaged in trading fresh fruit drinks and other related products. Its famous brand is “Buko ni Fruitas.” BALAI’s products are sold in kiosks, mostly in malls.
While RFM is also a food company involved in the manufacturing, processing, and selling of wheat, flour, and flour products, pasta, milk, juices, margarine, and other food and beverage products, its famous brands are Sunkist, Selecta Ice Cream, Selecta Milk, Royal Pasta, and White King Flour. RFM’s products are primarily on shelves in grocery stores.
In the first half of 2023, BALAI registered a gross profit percentage of 48%, dwarfing RFM’s 30%.
Although BALAI’s revenue in the first six months of 2023 rose to 249 million from 145 million in the same period in 2022, its gross profit percentage declined by two percentage points from 50% in 1H2022 to 48% in 1H2023.
Compared to RFM, which grew its revenue to 9.2 billion from 8.5 billion a year ago, its gross profit percentage declined by four percentage points from 34% in 1H2022 to 30% in 1H2023.
BALAI’s fresh product offering holds its profit margin better than RFM’s commodity products.
There is a trend here. Consumers are giving premium to fresh products as against commodities.
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