Sphera Franchise Group estimates sales of over RON 1.64 billion and a 20% higher profit than the previous year, in 2024

Highlights:

• The Board of Directors of Sphera Franchise Group approved the budget for 2024, which will be subject to approval in the GSM on April 26, 2024;
• The company estimates double-digit increases compared to the previous year, both in terms of top line (sales of RON 1.64 billion, +12.2%) and bottom line (normalized net profit of RON 95.7 million, +20.1%);
• Normalized EBITDA is forecast to reach RON 189.8 million, 28.3% higher than in 2023;
• The Group’s available cash flow is estimated to exceed the level recorded in 2023 by 7.4%;
• The budget for investments amounts to approx. RON 69 million, this year;
• The company will open 6 new KFC restaurants in Romania in 2024.

Sphera Franchise Group (BVB: SFG), the largest group in the food service industry in Romania, budgeted for 2024 double-digit increases for the main financial indicators. The company aims to reach restaurant sales of over RON 1.64 billion, up 12.2% compared to 2023, due to a combined effect of same-store sales growth and opening of new units. Profitability indicators are expected to improve significantly, with an increase in normalized net profit of 20.1%, to RON 95.7 million and normalized EBITDA higher by 28.3%, of RON 189.8 million.

"The remarkable previous results and the good prospects we currently anticipate for our business in 2024 make us confident that we will achieve our set targets. We expect a more predictable year, although not without challenges, so we aim to continue the fast-paced growth of recent years. Our priorities remain development in line with sustainability principles, value creation for our shareholders and healthy profitability. In this sense, we will diligently follow the proven strategy of network expansion, tailored customer approach through relevant offers and smart pricing, efficient cost management, and investments in Sphera team", said Calin Ionescu, CEO, Sphera Franchise Group.

The company estimates that in 2024 food and material cost growth will also remain below that of sales, while energy costs will be predictable and in line with those recorded in 2023. The share of normalised general and administrative (G&A) expenses in total sales in 2024 will be lower than in 2023, due to the inelasticity of these costs in relation to the increase in activity volume.