Figaro Coffee Group net profit margin up 10% in 2023

The Figaro Coffee Group, Inc. posted double-digit growth in its net profit margin for 2023, as it reported a reduction in the cost of goods sold and a record number of stores.

In a regulatory filing, Figaro reported a 7.2% increase in its fourth-quarter 2023 net income to P195 million, bringing its full-year net profit margin up 10% year-on-year or P480.4 million, and 84% higher compared with 2022.

Revenues for the October–December period jumped 42% to P1.45 billion, while full-year revenues jumped to P5 billion from P3.2 billion.

FCG ended the year with 203 total stores after opening 68 new stores during the period. Its portfolio includes 64 Figaro Coffee stores, 124 Angel’s Pizza stores, 10 Tien Ma’s Taiwanese cuisine stores, four Cafe Portofino stores, and one Koobideh Kebabs store.

The group has since opened four more stores, bringing its total stores across all brands to 207 as of February 7, 2024.

“Despite global inflation challenges, FCG navigated 2023 successfully,” FCG chief financial officer Pet Español III said, noting that the company’s cost of goods declined to 32% from 38% in the previous year.

“The strategic management of financing costs, improving efficiencies, and utilizing economies of scale was instrumental in softening the negative effects posed by inflationary pressures,” he added.

Inflation in the Philippines clocked in at 3.9% in December 2023, bringing the full-year average to 6.0%.

This is higher than the 5.8% print in 2022, due mainly to the higher food prices during the year.

“The company is positioned to continue the growth of its stores and brands nationwide to further expand its presence in the Philippines,” Español said.  — VBL, GMA Integrated News