Figaro Coffee Group net income up 7%

LISTED food and beverage company Figaro Coffee Group, Inc. (FCG) recorded a 7% increase in its attributable net income to P194.75 million in the second quarter of its fiscal year ending June led by higher revenues.

FCG said in a regulatory filing on Monday that its revenues during the October to December period rose 42% to P1.45 billion from P1.02 billion a year ago.

In the first six months, FCG recorded a 7% increase in its attributable net income to P282.94 million from P265.11 million a year ago.

The company’s system-wide sales rose by 36% to P2.79 billion from P2.05 billion last year, while revenues increased by 36% to P2.77 billion compared to P2.04 billion a year ago.

“This was brought about by the opening of 38 stores from July 1, 2023 which brought the total number of stores to 203 by end of December 2023,” FCG said.

FCG said its gross profit also improved by 31% to P1.29 billion.

“Gross profit increased by 31% primarily due to the increase in volume from store expansion and opening, though the gross profit margin slightly reduce from 48.4% to 46.8% due to inflation for major raw materials during the start of 2023,” the company said.

Meanwhile, FCG’s operating expenses increased by 44% to P917.5 million from P635 million last year.

“Operating costs also increased by 44% as a result of the massive store opening activities during the year which resulted to increasing overhead costs,” the company said.

Figaro Coffee has one subsidiary, Figaro Coffee Systems, Inc., through which it operates various brands such as Figaro Coffee, Angel’s Pizza, Tien Ma’s, and Café Portofino.

On Monday, FCG shares dropped by one centavo or 1.41% to 70 centavos apiece. — Revin Mikhael D. Ochave