Figaro Coffee Group Inc. (FCG), a prominent player in the Philippine coffee industry, reported a significant increase in its income for the first quarter ending September 30, 2023. The company disclosed a 17% rise in income, reaching PHP 103.48 million, compared to PHP 88.18 million in the same quarter the previous year. This information was revealed in a filing to the Philippine Stock Exchange.
The growth in income is attributed to strategic expansion efforts and improvements in operational efficiency. During this period, FCG, which owns Figaro Coffee and Angel’s Pizza, saw its revenue grow by 6%, reaching PHP 1.39 billion from PHP 1.31 billion the previous year. The positive performance was partly driven by an increase in system-wide sales, which include both company-operated and franchised stores. These sales grew by 4% to PHP 1.49 billion.
The company expanded its presence by opening 11 new stores during the quarter, increasing its total number of stores to 214 by the end of September, up from 203 stores a year ago. Despite the revenue growth, FCG faced challenges with its gross profit margin, which grew at a slower rate of 5%. The company attributed this to rising raw material costs and increased labor expenses, influenced by global inflation and a hike in the minimum wage.
FCG’s Chairman, Justin Liu, stated that while inflationary pressures have tempered margin growth, the company remains confident in its ability to manage these challenges. Liu emphasized the company’s commitment to operational excellence and providing high-quality, convenient food options for Filipino consumers. The company continues to focus on executing its store expansion strategy, aiming to enhance its market presence further.
