LISTED food and beverage company Figaro Coffee Group, Inc. logged a 133% increase in net income to P462.56 million for its fiscal year ending June 30 amid higher revenues.
“This remarkable growth was attributed to increasing volume and efficient management of overhead costs, demonstrating the company’s commitment to enhancing both production and productivity,” Figaro said in a regulatory filing on Monday.
Figaro’s latest annual profit is a big improvement over its P198.19 million net income in the previous fiscal year.
Figaro’s revenues rose 75% to P4.28 billion from P2.44 billion. The company said same-store sales rose 6%, without giving comparative numbers. It currently has 186 stores across its brands, with more under construction.
The company’s gross margin declined to 45% from 49% while its operating margin rose to 14% from 10%.
“While the company experienced a slight dip in its gross margin, declining from 49% to 45% due to [an] increase in raw ingredients costs, its operating margin improved from 10% to 14% due to prudent cost management and improvement in operational efficiencies,” Figaro said.
Meanwhile, Figaro said its improved financial position was also complemented by the investment from Monde Nissin Corp., further bolstering the proceeds from the company’s initial public offering proceeds.
In January, Monde Nissin acquired a 15% stake in Figaro Coffee for about P820.27 million as it pursued growth opportunities.
Meanwhile, Figaro Coffee said it recently launched new products to improve its menu lineup such as the creamy spinach sushi bake pizza for the Angel’s Pizza brand as well as new all-natural drinks for 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,” Figaro Coffee Chief Executive Officer Divine G. Cabuloy said, adding that despite the challenges, the group “will press on” to give the best product and value-for-money options for its customers.
Figaro 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, shares of Figaro Coffee dropped seven centavos or 9.46% to finish at 67 centavos each. — Revin Mikhael D. Ochave