The Figaro Coffee Group (FCG), a leader in the Philippine food and beverage sector, is allotting about P1 billion for the opening of 70 to 80 new stores this year as it aims to expand its footprint in Visayas and Mindanao.
In an interview, FCG Chairman Justin Liu said the expansion will be through company-owned as well as franchised stores with each outlet costing about P15 million to put up.
He added that the firm’s aggressive store expansion program will propel earnings to grow in double-digits this year.
The bulk of the new stores will be for Angel’s Pizza which is enjoying strong patronage from its low to middle-income market. About half of the new stores will be in Luzon while the balance will be in Visayas and Mindanao.
“Angel’s Pizza is enjoying more of the capital because that's where a lot of the sales and the EBITDA and profit is coming from and also the growth potential. So we're allocating more of the capital to where the growth is. I think Angel’s expansion into the provinces can become a base for the future expansion of the other brands because Angels will also need a commissary, facilities and warehouse. And this can be used also for the other future expansion of the other brands,” said Liu.
He added that the capex will be funded mostly by internally generated funds because cash flow from the earnings of its stores remain strong. It will also be using some bank loans as well as the fresh capital from the investment of Monde Nissin into the company.
He said that, for Angel’s Pizza alone, they are targeting to have about 400 stores in three to five years as it aims to be the country’s top pizza chain by then.
For the quarter ending March 2024, FCG reported revenues of P1.3 billion, up 27 percent from same quarter last year. Net income after tax for the quarter registered at P105 million, up five percent from the same period of last year.
For the calendar year January to December 2023, FCG achieved a landmark revenue of P5 billion, marking a 55 percent increase over the previous year’s P3.23 billion.
The company ended 2023 with a net income after tax of P480.38 million, an increase of 84 percent compared to same period in the previous year. This was achieved through managing inflationary pressures by optimizing internal operations which controlled overhead and operating expenses.
Store growth was propelled by the strategic opening of 67 new stores in 2023. Within the 67 newly opened, 55 stores were opened in Luzon, nine in Visayas and three in Mindanao.
Additionally, the company witnessed a six percent growth in same-store sales in 2023 compared to 2022, driven primarily by the Angel’s Pizza brand. Tien Ma’s Taiwanese and Figaro Coffee also experienced an increase in same-store sales, fueled by improvement in dine- in traffic throughout the year.
In 2023, FCG likewise launched its first casual-dining kebabs brand, Koobideh Kebabs in Makati, serving beef and chicken kebabs and other middle eastern side items.
FCG ended 2023 with a total of 203 stores, broken down to 124 Angel’s Pizzas stores, 64 Figaro Coffee stores, 10 Tien Ma’s Taiwanese stores, four Cafe Portofino stores and 1 Koobideh Kebabs stores.
“As FCG progresses into 2024, our commitment is to continue to expand our presence, pursue sustainable growth, and continue product innovation to deliver enhanced value to our customers and shareholders,” said Liu.