Figaro Coffee Group reports stellar growth in Q4
Q4/21 profit of P107 million, up 101% from Q4/20 profit of P53 million, and up 48% from Q3/21 profit of P72 million.
On a 6-month basis (H2/21 vs H1/21), Figaro Coffee Group [FCG 0.83 5.06%] reported double-digit increases in system-wide sales (+17%), net revenues (+18%), EBITDA (+29%), and net income after tax (+29%).
FCG attributes higher revenues in Q4/21 specifically to a 75% increase in royalty and franchise fees associated with the opening of franchise stores during the period, and to an overall increase in sales and revenue, coupled with lower raw material costs, that produced greater gross margins.
FCG provided segment analysis of revenues between the two halves of 2021, but that doesn’t tell the operational story that a segmented breakdown of system-wide sales and same-store sales could provide.
From what they did provide, revenues from Angel’s Pizza grew 12%, while Figaro Coffee grew 10% Tien Ma’s was flat, and TFG Express had no historical comparison.
Angel’s Pizza accounted for over 92% of FCG’s operational revenue in H2/21.
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FCG didn’t provide as much guidance and analysis as I would normally like from a brand-based holdco, which is especially frustrating for shareholders and investors that are trying to evaluate the value of FCG’s future plans (which are super-heavy on its Angel’s Pizza brand) based on data from these reports.
A 17% increase in system-wide sales in the second half of 2021, as compared to the first half, is undeniably a great thing, but how does that breakdown for its main brand, Angel’s Pizza, and all of its secondary brands like Figaro Coffee, Tien Ma’s, and TFG Express?
Are any of its secondary brands growing at a faster rate that might indicate opportunities?
Do any of the same-store sales figures reveal operational opportunities for bottom-line growth?
We can’t really tell.
To FCG’s credit, as a public company it’s still less than a month old and this is only their first quarterly report.
It’s fair to assume that nothing material has changed with the company since we bathed in the hype of the IPO’s sales pitch, but I hope that future reports will be more detailed and transparent to allow shareholders and potential investors the ability to properly evaluate the company’s progress and performance against its projections.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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