Romanian restaurant operator Sphera Franchise Group triples its net profit in the first quarter of the year
Key information Q1 2024 vs. Q1 2023:
Key information Q1 2024 vs. Q1 2023:
- Best Q1 in Sphera's history in terms of sales, EBITDA and net profit
- Consolidated sales continue to grow at strong pace, up 9.2%
- Significant improvement of net profit, up 192%, to RON 21.4 million
- Double-digit increase in EBITDA (+69%) to RON 39.8 million
- Comfortable profitability, with an EBITDA margin of 10.9%
- Minimum net debt/EBITDA ratio of 0.3
Sphera Franchise Group (stock symbol SFG), the largest group in the Romanian food service industry, continues its record-breaking streak and marks the best first quarter in its history in terms of sales, EBITDA and net profit. Higher turnover in all three countries where the Group is active led to a 9% increase in total sales in Q1 2024 compared to Q1 2023, to RON 365.9 million. EBITDA marked a significant double-digit increase (+69.1%) to RON 39.8 million and net profit almost tripled (+192%) to RON 21.4 million.
"The good results obtained quarter by quarter demonstrate our ability to continue to grow the business while delivering performance. They are proof of the team’s efforts and dedication, and the effectiveness of our strategic initiatives. We are on target with our budget estimates for this year and confident that we will continue to create value for all our stakeholders. Over the year, we will strengthen our industry leadership position by focusing on identifying and capitalizing on opportunities to expand our unit network in smaller cities and shopping centers where we are not yet present and investing in digitalization, innovation, and remodeling of our current restaurants" said Călin Ionescu, CEO, Sphera Franchise Group.
KFC Romania remains the driver in the first quarter of this year, with sales of RON 268.8 million, representing a comfortable double-digit growth (+12.8%) compared to Q1 2023. The main indicators recorded notable performances. The restaurant operating profit increased by 58.3%, reaching RON 38.3 million at the end of March, and EBITDA surged by 64.8% to RON 35.4 million. Net profit doubled (+105.6%) to RON 23.9 million. Moreover, KFC Romania ended the first quarter with an excellent EBITDA margin of 13.2%. The brand continued its expansion with the opening of a new KFC restaurant in February in Sibiu.
