MANILA, Philippines —Businessman Jerry Liu’s Figaro Coffee Group saw sales and profits rise during the second quarter of its fiscal year ending December last year.
The company, however, missed a previous target to open 100 new stores following the strategic entry of food manufacturing giant Monde Nissin Corp.
Figaro Coffee said 2023 was a “banner year” for the group after revenues from October to December last year jumped 42 percent to P1.45 billion, a stock exchange filing on Wednesday showed. Net income during the period hit P195 million, up 7.2 percent.
“The company saw improvements in top-line sales, bottom-line margins, enhanced store operations, strengthened commissary capacities, and laid the groundwork for further growth in the future,” Figaro Coffee said.
Figaro Coffee said earnings were bolstered by the opening of 68 new stores in 2023. This was about 32 percent lower than its goal to open 100 corporate stores stores, partially bankrolled by Monde Nissin’s P820-million investment for a 15-percent stake in Figaro Coffee in January 2023.
Profit margin up
“Despite global inflation challenges, FCG navigated 2023 successfully. The company optimized key expenses, reducing cost of goods sold to 32 percent from the previous year’s 38 percent,” Figaro Coffee chief financial officer Jose Petronio Vicente Español III said in the filing.
“The strategic management of financing costs, improving efficiencies and utilizing economies of scale was instrumental in softening negative effects posed by inflationary pressures. The company is positioned to continue growth of its stores and brands nationwide to further expand its presence in the Philippines,” he added.
For the whole of 2023, Figaro Coffee said revenue hit P5 billion, up 56 percent from P3.2 billion booked in 2022.
It also underlined the sharp increase in profit margins of 10 percent to P480 million. This was 84 percent higher versus the same period in 2022.
The company said store openings reached an all-time high of 203 outlets last year.
These were comprised of 124 branches of Angel’s Pizza, 64 Figaro Coffee stores, 10 Tien Ma’s Taiwanese cuisine stores, four Cafe Portofino stores and one branch of Koobideh Kebabs.