Romanian restaurant operator Sphera Franchise Group's sales reach RON 1 billion in the first nine months of 2023
9M Highlights:
9M Highlights:
- Revenues of RON 1.07 bn (EUR 217 mn) in 9M, up by 12.7% compared to similar period of 2022
- Normalized EBITDA of RON 94.7 mn (EUR 19.2 mn) in 9M, 63% higher compared to 9M 2022
- A 175% increase in normalized net profit, to RON 43 mn (EUR 8.7 mn) in 9M 2023 vs. 9M 2022
- Improved profitability in Q3, with increases YoY of 20% in normalized operating profit, 14% in normalized EBITDA and 28% in normalized gross profit
- Restaurants network of 178 units as of September 30, up by 4 net new restaurants YoY
Sphera Franchise Group (“Sphera”), the largest group in the food service industry in Romania, registered another record high, with total sales of RON 1,074.7 mn in the first nine months of 2023, a 12.7% increase compared to the same period of 2022. The Group significantly improved its profitability in the three quarters with double-digit increases in restaurant operating profit and normalized EBITDA and triple-digit increases in operating profit and net profit.
"We marked a new milestone - surpassing 1 billion lei in sales in nine months for the first time in our history. This is a significant accomplishment, because, even though most of the factors that negatively impacted on our performance last year stabilized, we are operating in a volatile and unpredictable market environment. But the resilience and adaptability of our team have been nothing short of remarkable, and our strategy deeply rooted in the strengths of our business and market opportunities has been reconfirmed. For the near future, our efforts remain channeled on steady development, with a focus on efficiency across all brands and economically sound ESG principles leading our actions," stated Călin Ionescu, CEO, Sphera Franchise Group.
KFC Romania remains the main contributor to total revenues, with sales of over RON 776 million in the first nine months of the year, up by 13.2% from the same period in 2022. Its profit margins are double-digit, with an operating profit of restaurants of RON 89,6 mn (+31.4% YoY), a normalized EBITDA of RON 81,7 mn (+28.7% YoY) and a normalized net profit of RON 51.3 mn (+29.3% YoY). KFC Italy continues its very good performance, with an increase in sales of 14.6%, up to 135 million lei. After reaching break even in terms of net profit in the first semester, its margin improved by 9 pp in the first nine months compared to the same period last year. KFC Moldova remains a very profitable business - with nearly 22% sales growth and 35% higher restaurant operating profit, the company has a comfortable EBITDA margin of nearly 17% in the first 9 months of this year. Pizza Hut has seen a slight decrease in sales, of 2.3%, to RON 86.7 mn, amid the start of a streamlining process that accelerated during the fourth quarter and whose results will most probably come to fruition in the next several months. Taco Bell once again had excellent results, with sales up 25.5%, to RON 62 mn. The brand continues to record positive EBITDA of RON 3,5 mn and a three-digit growth rate of 122%.
