On 01 June 2023, a wholly owned subsidiary of Figaro Coffee Group (FCG) bags a certificate of approval from the PEZA Board for registration as an Ecozone Export Enterprise. FCG shall engage in the production of roasted coffee for export. The registration entitles FCG’s coffee export business income tax holidays for five years and thereafter a special corporate income tax for ten years.
Although there is no detail yet on the production and export volume, this development could not be dismissed as trivial.
Interestingly, in the first quarter of 2023, FCG spent 258 million on property and equipment. FCG is really investing in property and equipment. FCG will not go through the regulatory hassle for the export enterprise registration if the coffee processing and export business could not be a new cash machine for the company.
This could probably explain Monde Nissin’s (MONDE) acquisition of a 15% stake in FCG. MONDE acquired its 15% stake at a 1Peso per share valuation.
In the news regarding the acquisition, it was reported that MONDE’s Chief Executive Officer Henry Soesanto said that the acquisition would provide the company exposure to the food service sector, which could be a potential avenue for further growth here and abroad.
You may follow our views and commentaries on Google News on the web or in the Google News app. Just search accuretti.com in Google News (or click this link). Then click the star to follow.