Restaurant operator Sphera to distribute more dividends despite shrinking profits
Sphera Franchise Group (BVB: SFG), the restaurant operator with KFC, Pizza Hut, and Taco Bell in its portfolio, active in Romania, Italy and Moldova, invited shareholders to vote on December 20 on the distribution of supplementary dividends worth RON 20 mln (EUR 4 mln) out of the net profit achieved in 2020.
The company previously distributed RON 35 mln (EUR 7 mln) as dividends out of the profit gained in the same year.
The gross yield of the new dividend is 3.5%, based on the current trading price of the company’s shares. But for the first nine months of the current year, the company reported that the net profit of its restaurants shrank by 44.4% YoY to RON 15 .6 mln (EUR 3 mln) despite its sales surging by 30.9% YoY to RON 953.6 mln. Based on the latest profit figures, the company’s shares trade at a price per earning ratio of 54.
The company’s market capitalisation reached RON 535 mln (nearly EUR 110 mln).
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