Food manufacturer Monde Nissin Corp. said it is exploring ways to exit its investments in Figaro Coffee Group Inc., after the deal failed to provide the company an attractive avenue for growth in the consumer segment, according to a top official.
Monde Nissin chief executive and executive vice president Henry Kahayu Soesanto said that when Monde Nissin made the strategic investment in Figaro, it was hoping that the restaurant operator would enable the company to enter into new product categories.
“We have to admit that initially we thought the brand of Figaro can help us enter into the new category there. But we find out that the possibility is slim. We are today trying to look for the exit on this,” Soesanto said in a recent investors’ briefing.
“But basically, we said that investing in Figaro, we will bring the brand into the consumer segment but it has not been successful,” he said.
Monde Nissin acquired a15-percent stake in Figaro for around P820.27 million in January 2023. It acquired 820.7 million shares at P1 apiece, which at that time represented a 12.35-percent premium to Figaro’s closing price of P0.89.
Shares of Figaro closed at P0.81 on Friday, valuing Monde Nissin’s stake at P664.8 million.
Figaro wholly owns Figaro Coffee Systems Inc., which operates and/or franchises a network of restaurants. These include Figaro Coffee, Angel’s Pizza, Tien Ma’s, and The Figaro Group Express outlet.
Monde Nissin is a global food and beverages company with a portfolio of iconic and market leading brands across fast-growing categories, including Lucky Me! noodles, SkyFlakes crackers, Fita crackers, Monde baked goods and Quorn meat alternative products.
Meanwhile, Monde Nissin’s net income declined 13.8 percent in the third quarter of the year to P1.99 billion from P2.3 billion a year ago on restructuring costs and foreign exchange loss.
Third-quarter sales increased 3.4 percent to P21.01 billion from P20.45 billion in 2023.
