Figaro Coffee net income doubles

MANILA, Philippines — Figaro Coffee Group Inc. (FCG) saw its earnings more than double during its fiscal year ending June 30, 2023 on the back of higher volume and efficient management of overhead costs.

FCG reported a net income of P462.6 million during the fiscal year, a 133 percent surge from the previous year’s P198.2 million.

Revenues of the company jumped by 75 percent to P4.28 billion, driven primarily by a six percent year-on-year increase in same-store sales.

“This remarkable growth was attributed to the company’s aggressive store expansion and openings, which saw the addition of 44 new stores during the reporting period,” FCG said.

The company currently has a total of 186 stores across all brands, with more under construction.

Despite recording a slight dip in its gross margin during the year due to higher raw ingredients costs, FCG said its operating margin improved from 10 percent to 14 percent as a result of prudent cost management and improvement in operational efficiencies.

Furthermore, FCG said the group made significant strides in its financial position, complemented by an investment from Monde Nissin during the fiscal year which bolstered the funds acquired from the initial public offering proceeds of the previous year.

FCG also recently launched innovative new products to complement its menu line-up, such as new healthier all-natural drinks in Figaro Coffee.

“We are very humbled by the patronage of old and new customers to our brands and we are excited to continue our prudent expansion and product innovation. While there are many challenges, we will press on to give the best product and value-for-money for our customers,” FCG chief executive officer Divine Cabuloy said.

FCG, through subsidiary Figaro Coffee Systems Inc., operates and franchises a network of retail restaurants that include Figaro Coffee, Angel’s Pizza, Tien Ma’s, and Café Portofino.