Figaro Coffee Group Inc. ended 2025 with solid fourth quarter results, delivering double digit growth in earnings as store expansion and a favorable product mix offset weaker same store sales.
Systemwide sales for the October to December period climbed 21 percent to P1.77 billion from P1.47 billion a year earlier. Growth was fueled mainly by new outlets, with nine stores opened during the quarter, bringing the total network to 231 by year end. Same store sales declined 4 percent amid industrywide softness tied to global inflation, but contributions from new company owned and franchised branches lifted overall revenues.
Consolidated net revenues rose 17 percent to P1.69 billion. Cost of sales increased at a slower 7.9 percent pace to P877.2 million, allowing gross profit to surge 28 percent to P808.6 million.
Margins improved by four percentage points, supported by higher margin products and a rise in single order pizza sales.
Franchise operations added to the margin lift as more franchise stores came onstream. New revenue streams such as institutional sales distribution, 3 in 1 coffee and packed meals introduced during the quarter helped temper rising raw material costs and minimum wage adjustments.
Operating expenses grew 42.3 percent to P481 million as the company invested in marketing, quality assurance, maintenance, research and development, and administrative support for its expanding footprint. Operating costs accounted for 29 percent of revenues, up from 23 percent a year ago.
Net income increased 11 percent to P245.7 million, sustaining a 15 percent profit margin despite higher overhead and inflationary pressures.
