Figaro in talks with 2 potential investors

MANILA, Philippines — Figaro Culinary Group Inc., formerly Figaro Coffee Group Inc., is in talks with two potential investors that could provide fresh capital to help scale up the company’s operations in the coming years.

A source with knowledge on the matter told The STAR that two groups are in the running for Figaro’s ongoing search of potential investors.

Figaro has previously initiated a search of potential investors to raise additional capital to fund future store openings and expansion.

The move is in line with the company’s commitment to pursue sustainable growth and continue product innovation to deliver enhanced value to its customers and shareholders.

For proposed investments, Figaro earlier said the potential third-party investors or various investors would subscribe to approximately up to 20 percent of its outstanding common shares through the issuance of primary common shares out of the company’s existing authorized capital stock.

The source, however, said there is no definite timetable for the closing of the potential deals, as it would depend on when the investors will complete their respective due diligence.

Figaro has previously tapped an investment bank to help in finding potential investors.

Figaro’s major investors include Camerton Inc., Monde Nissin Corp. and Carmetheus Holdings Inc.

Through subsidiary Figaro Coffee Systems Inc., the company operates and franchises a network of retail restaurants that include Figaro Coffee, Angel’s Pizza, Tien Ma’s, Koobideh Kebab and Café Portofino.

The listed firm recently revised its corporate name to Figaro Culinary Group to reflect the growing diversity of the business.

From January to March, Figaro reported flat systemwide sales of P1.3 billion.

Its same store sales for the period declined by 10 percent brought about by the industry wide declining sales as affected by the global inflation and exodus of Philippine offshore gaming operators.

The company, however, said the decline was cushioned by the nine new stores that opened during the quarter, bringing its total store network to 225 by the end of March.