Food and beverage company Figaro Coffee Group, Inc. logged a 7-percent increase in net income in the second half of 2023, as a result of the improvement in volume resulting from store opening and expansions.
Figaro said in a regulatory filing Monday net income from July 1 to Dec. 31, 2023 reached P282.9 million, up from P265.1 million recorded in the same period in 2022.
System-wide sales grew 36 percent to P2.79 billion from P2.05 billion in the same period.
The company opened 38 new stores during the period, which brought the total number of stores to 203 by end of December 2023. Total revenues also increased 36 percent.
Gross profit went up by 31 percent primarily due to the increase in volume from store expansion and opening.
Gross profit margin slightly declined to 46.8 percent from 48.4 percent due to inflation for majority of raw materials at the start of 2023.
Operating costs increased 44-percent as a result of the massive store opening activities during the year, which resulted in higher overhead costs.
Figaro, which operates several restaurant brands including Figaro Coffee, Angel’s Pizza and Tien Ma’s, has been aggressively expanding not only in Metro Manila but also in other key cities.
It is also looking at franchising to accelerate its expansion plans.
The company earlier obtained shareholders’ approval for the sale of up to 20 percent of the company’s outstanding common shares to potential third-party investors to fund the roll-out of more stores.
Its shareholders also approved the proposed conduct of a follow-on/public offering of either common shares or preferred shares.