2023 and beyond with the Figaro Coffee Group
The Figaro Coffee Group, one of the Philippines’ leading and beloved food and beverage conglomerates, hosted a remarkable press conference at the Edsa Shangri-La Mandaluyong. This exclusive event, titled “2023 Business Performance and Beyond,” was graced by the top management of the Figaro Coffee Group, including Mr. Justin Liu, Chairman; Ms. Divine Cabuloy, CEO/President; Mr. Mike Barret, COO/EVP; and Mr. Petronio Español III, CFO.
Strategic Expansion
A major highlight of the conference was the exciting update on the expansion of Figaro Coffee Group’s portfolio of brands. As of 2023, the group operates 60 Figaro Coffee stores, 116 Angel’s Pizza outlets, 10 Tien Ma’s locations, and 6 Café Portofino establishments, a total of 192 stores. Moreover, the Figaro Coffee Group has set its sights on new horizons, with upcoming store openings in Laguna, Pampanga, Rizal, Cebu, Pangasinan, Bohol, Ormoc, and Davao for the remainder of 2023.
Financial Milestones
The Figaro Coffee Group’s financial performance for the year ending June 30, 2023, showcased impressive growth and resilience. Revenues surged by a remarkable 75%, primarily attributed to the extensive expansion and opening of 44 new stores during the period, bringing the total number of stores to 167. This expansion was complemented by a 6% increase in same-store sales compared to the previous year, driving total revenues to a substantial P4.28 billion, up from P2.44 billion in the same period the year before.
The group encountered a slight decline in gross margin, dropping from 49% to 45% in June 2023. This was largely due to global inflation affecting major raw materials, particularly within Angel’s Pizza. However, this was mitigated by careful management of overhead costs, maintaining operating expenses at 31.7% of sales, a notable improvement from the 38.8% ratio from the same period the previous year.
Despite these challenges, net income after tax witnessed an extraordinary 133% increase, soaring to P462.6 million from P198.2 million, driven by increased volumes and efficient cost management.
The Figaro Coffee Group also made substantial strides in improving its cash flow and financial position. An infusion of P820 million from Monde Nissin, along with funds from the IPO proceeds of the previous year, bolstered assets from P1.8 billion to P3.2 billion by the end of June 30, 2023. The current ratio improved to 374% from the previous year’s 319%, and debt to equity was impressively maintained at 1%. Return on equity more than doubled from 8% the previous year to 17% by June 30, 2023, despite the infusion of new investors.
The Figaro Coffee Group remains firmly poised for growth in the coming years, with ample funding for capital expenditure requirements, strong margins, and positive projections in terms of transaction counts and same-store sales percentage.
Innovations at Angel’s Pizza
Angel’s Pizza, the strongest brand under the Figaro Coffee Group umbrella, introduced a series of exciting developments in 2023. Notable highlights include the launch of the Angel’s Pizza App, featuring ordering and payments system in an easy-to-use and friendly interface. Additionally, the introduction of the “Creamy Spinach Sushi Bake Pizza” has captured the taste buds of customers, becoming the second best-selling pizza, just behind the iconic “Creamy Spinach Dip Pizza.”
Angel’s Pizza also embarked on a spirited journey with the Angel’s Pizza Caravan, delighting customers with activities such as motorcades, drum and lyre performances, and fan photo operations. Furthermore, the brand introduced delectable new items to its menu such as Palabok Special, Chicken Fingers, Banana Langka Pie, Ube Macapuno Pie, Saba Con Yelo and Triple Chocolate Cake.
New Offerings
In the world of Figaro Coffee, 2023 saw the introduction of new items: the Roasted Almond Oatmilk Latte, its Piña Colada Cake and keto selections in selected stores. Meanwhile, Tien Ma’s presented three new offerings to its patrons: the Honey Walnut Chicken, Spinach Soup, and General Tso’s Chicken.
“Sama Sama Sa Angel’s Pizza” Jingle and Video Launch
The press conference concluded with the much-anticipated launch of the Angel’s Pizza jingle and video, titled “Sama Sama Sa Angel’s Pizza,” which aims to capture the hearts and minds of customers and solidify the brand’s place in the Philippines’ culinary landscape.
ADVT
