1 month ago
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Richmond Mercurio - The Philippine Star
February 6, 2025 | 12:00am
A branch of Figaro Coffee.
Photo from Figaro Coffee website
MANILA, Philippines — Figaro Coffee Group Inc. is looking to sell a portion of its stake to welcome new investors in the company.
The STAR has learned from sources that the listed holding company has initiated a search process for new investors.
Figaro has tapped an investment bank to help in finding potential investors.
A source from the company confirmed that the search process is still ongoing, saying that it is under the initial stage of due diligence.
“There are always interested parties but there is nothing sure at the moment,” Figaro Coffee Group chairman Justin Liu told The STAR.
Liu declined to provide further details on the search process, saying that there are non-disclosure agreements in place.
The entry of a new investor in Figaro is expected to support the company’s growth initiatives in the coming years.
Figaro’s share price closed at P0.82 apiece on Feb. 4, while its 52-week low stands at P0.62 and its 52-week high is at P0.94.
Figaro, through subsidiary Figaro Coffee Systems Inc., operates and franchises a network of retail restaurants that include Figaro Coffee, Angel’s Pizza, Tien Ma’s, Koobideh Kebab and Café Portofino.
The group operated a total of 213 stores across all brands as of November 2024.
The company is set to revise its corporate name from Figaro Coffee Group to Figaro Culinary Group Inc. to reflect the growing diversity of the business.
Late last year, Monde Nissin CEO Henry Soesanto expressed his group’s intention to sell their 15-percent stake in the Figaro Coffee Group.
Monde Nissin, the company behind iconic brands such as Lucky Me! noodles and SkyFlakes crackers, acquired in 2023 a 15-percent stake in Figaro Coffee Group for about P820.3 million as part of its foray into the food service business and overall growth strategy in the Philippine market.
“We are today trying to look for the exit on this. But basically we said that investing in Figaro, hoping that we will bring the brand into the consumer segment, has not been successful,” Soesanto previously said.
Monde Nissin has declined to provide a status on their planned exit in Figaro.
Instead, the company said agility remains key for the group in the face of major factors like wheat costs, palm oil and the peso-dollar exchange rate.
“Wheat and palm oil are our largest input costs and prices have remained volatile. Because of previously projected commodities prices, we project our gross margin expansion year-on-year to continue from the first nine months to the rest of the year,” Monde Nissin said.
“We have a good stockpile of over 80 million and a conservative risk management strategy to buffer ourselves against any major movements in currency,” it said.
