BUSINESS
Figaro expects strong holiday sales
Store sales during the upcoming Christmas and New Year celebrations are expected to increase by as much as 80 percent. ‘It means our average daily sales, normally during the holidays, increase by 80 percent’
Listed Figaro Coffee Group Inc. or FCG is gearing up for more cheerful gains in the upcoming holiday season amid an expected double-digit sales gain as more people patronize its products.
FCG president Divina Gracia Cabuloy said in an interview last week that sales during the long weekend break this month are expected to increase by 50 to 60 percent.
Additionally, store sales during the upcoming Christmas and New Year celebrations are expected to increase by as much as 80 percent.
"It means our average daily sales, normally during the holidays, increase by 80 percent. Sometimes, they double up, especially during holidays," Cabuloy told reporters.
Listed Figaro CoffeeGroup Inc. or FCG booked a net income of P462.6 million during the first half of the year — a 133 percent surge from P198.2 million in the same period a year ago.
Revenues during the period also grew by 75 percent to P4.28 billion from P2.44 billion last year.
Efficient overhead management
In a report on Monday, the company attributed the financial gains to "higher volume and efficient management of overhead costs, demonstrating the company's commitment to enhancing both production and productivity."
FCG also noted that the overall growth was driven by its aggressive store expansion and openings, which saw the addition of 44 new stores during the reporting period —bringing the total store count to 167 as of the end of June.
Despite the expected increase in sales, Cabuloy acknowledged that the company has been affected by the rise in commodity prices, which forced it to adjust product prices.
Price increase
The company has already increased prices by 5 to 10 percent at Angel's Pizza and Figaro and will do so at Tien Ma's Taiwanese Cuisine by November, according to her.
"We've done some price increases, but not all products. We cannot increase so much because we are also consumers and we don't want to sell expensive products. We are giving good quality and value for money products to our customers," Cabuloy said.
Presently, the company has a total of 186 stores across all brands, with more under construction.
FCG wholly owns Figaro Coffee Systems Inc., through which it operates and/or franchises a network of restaurants — including FigaroCoffee, Angel's Pizza, and Tien Ma, among others.