Figaro gets PEZA approval for coffee production facility
Figaro [FCG 0.74 8.8%; 174% avgVol] [link] disclosed that it received approval from the board of the Philippine Economic Zone Authority (PEZA) for FCG, under its wholly-owned subsidiary, Figaro Innovation and Development (FIDI), to produce roasted coffee at its Laguna Technopark facility as an “Ecozone Export Enterprise”.
This will give FCG’s coffee project a 5-year income tax holiday, with an additional 10-year “special” 5% corporate income tax once that holiday expires. FCG said that its primary goal for FIDI is to make “trailblazing products and processes” to “level up the F&B industry”, and to “promote Filipino brands, products and raw materials globally.”
MB BOTTOM-LINE
These tax holidays are significant, but they’re only as significant as the volume of the activity that is being taxed. FCG’s plans with respect to the export of its coffee are not particularly clear, considering the old “CTRL-F” of “innovation” (for the subsidiary), “PEZA” (for the plan to acquire tax-free privileges), and “export” (for the plan to export products globally) returned zero hits on the company’s most recent Annual Report and its two latest Quarterly Reports. The global coffee market is massive (~$500 billion/year), and is expected to grow modestly year-on-year (5% CAGR), but it’s hard to attach a potential value to anything without knowing more. The market didn’t care about them pesky details, pumping the stock 9% on the news.
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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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