Figaro doubles profit to P462m on strong sales, store openings

Figaro Coffee Group Inc. saw its profit more than double in its fiscal year ending June 30, 2023, on the back of strong sales from restaurant business and continued rollout of new stores.

Figaro said in a disclosure to the stock exchange Monday net income reached P462.6 million, up 133 percent from 198.2 million in the same period last year.

Revenues in the fiscal year ending June 30 jumped 75 percent to P4.28 billion from P2.44 billion a year ago, while same-stores-sales rose 6 percent.

“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, bringing the total store count to 167 by June 30, 2023,” Figaro said.

It said more stores were under construction, and it would launch new products across all brands to ensure the sustained growth of the company.

Figaro through unit Figaro Coffee Systems Inc. operates Figaro Coffee, Angel’s Pizza, Tien Ma’s, The Figaro Group Express outlet and Cafe Portofino.

The company said gross margin declined from 49 percent to 45 percent due to increase in raw ingredients costs. However, operating margin improved from 10 percent to 14 percent on prudent cost management and improvement in operational efficiencies.

“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”, said Figaro chief executive Divine Cabuloy.

After posting strong growth, Figaro also declared cash dividends equivalent to 31 percent of the net income after tax for the fiscal year ending June 30, 2023.

This is aligned with the company’s disclosed dividend policy, which aims to distribute a percentage of the latest fiscal year’s net income after tax to shareholders.

Figaro reported last week its plans to raise fresh capital via share sale to fund long-term expansion.