Figaro Q2 profit: P222M (up 14% y/y)

Figaro [FCG 0.78 ?3.7%] [link] posted a Q2/24 net income of P222 million, up 14% from its Q2/23 net income of P195 million. FCG credited “efficient overhead management and continued store expansion” for its improved performance, despite a slight dip in quarterly revenue (down 0.5%) and increased raw material costs due to inflation. As of the end of 2024, FCG has 216 stores in the Philippines (142 Angel’s Pizza, 63 Figaro, 8 Tien Ma, 2 Cafe Portofino, and 1 Koobideh Kebabs). FCG opened 34 new stores in 2024 (28 Angel’s Pizza and 6 Figaro), but said they’re pursuing a “prudent expansion strategy together with launching more exciting and innovative menu items and promos this 2025.”

MB BOTTOM-LINE:  FCG just celebrated its second “IPO Birthday”, having hit the PSE for the first time back on the 24th of January, 2022. At the time, FCG had 90 stores and was planning to add another 61 stores with its IPO proceeds to have 300 systemwide stores by 2029. At 216 stores now, FCG seems ahead of schedule. It’s already done (more or less) what it said it would do according to the pared-down prospectus and the associated proceeds. It could maintain this pace and achieve that 300-store goal ahead of time, too. That’s all well and good, but the issue here is stock performance. It’s in a multi-year channel of higher highs and higher lows, but it’s still hovering right around its IPO price, with both FCG and Monde Nissin [MONDE 8.45 ?3.7%] looking to offload sizeable stakes to the public.