Figaro Coffee Group Inc. said it plans to spend P1 billion in 2024 capital expenditures to roll out 70 to 80 stores this year.
Figaro chairman Justin Liu said in a recent interview the company remained aggressive with store expansion plans across all brands to ensure a double-digit growth for the company.
“I think, we will still see double-digit growth for 2024 compared to 2023 because we have a lot of stores which are still under construction and we are still growing our store count,” Liu said.
Liu said while it would open most of the new stores within Luzon, the company is also opening new branches in the Visayas and Mindanao.
Liu said, however, the company was seeing the impact of high inflation and high interest rates on its operations as customers turned more conscious about their spending.
“It is a challenge on how do we innovate our products to still become value for money and catered to our low to middle-class market,” Liu said.
Liu expects its pizza brand Angel’s Pizza to be the leading pizza chain in the country over the next five years in terms of customer preference and store count.
“It is very difficult to say when, but hopefully within the next five years. It is very challenging because our competitors are larger than us and more capitalized than us. It’s a very competitive market,” Liu said.
Angel’s Pizza accounts for the bulk of Figaro’s sales and net profit. Liu said because of this, bulk of Figaro’s new store openings would also be for Angel’s Pizza.
“We are allocating more of the capital to where the growth is. That’s why we’re also open to creating new brands,” Liu said.
Figaro booked net income of P430.4 million in 2023, up 84 percent from 2022 as revenues climbed 55 percent to P5 billion from P3.23 billion.
The company also reported a net income of P105 million in the first quarter of 2024, up 5 percent from the same period last year as revenues grew 27 percent to P1.3 billion.
