Romanian restaurant operator Sphera Franchise Group posts 32% higher sales and 71% higher net profit in 2022

Sphera Franchise Group (“Sphera”), the largest group in the food service industry in Romania, closed 2022 with RON 1.3 billion in consolidated restaurant sales, a 32% increase compared to 2021, the highest level ever achieved by the Group. Due to efficient cost management, increase in transactions overall and price adjustments, normalized EBITDA reached RON 102.7 million, up by 40% YoY. Thus, Sphera closes 2022 with a healthy profitability, with normalized net profit of RON 44.3 million, 71% higher than in 2021.

“The strong results of Sphera in 2022 are testament to the efficiency of our strategy and the strength of our brands in attaining healthy growth that supports performance. We are committed to long term sustainable development, while delivering excellent products and services to our customers, a fostering environment for our employees, positive returns to our investors and support in the community, and 2022 is proof that we deliver on this promise despite the challenges. We have faced a tough year and the volatility of the economic environment persists, but Sphera is based on strong fundamentals and we will continue to build on this to carry out our strategy and achieve our goals, to the benefit of our clients, investors, employees and communities alike”, stated Calin Ionescu, CEO, Sphera Franchise Group.

The performance in 2022 was due to strong results across markets and brands, with double digit growth in sales. KFC Romania contributed with sales of RON 946.9 million (+29% YoY), KFC Italy with RON 166.3 million (+46% YoY), Pizza Hut with RON 122.9 million (+37% YoY), Taco Bell with RON 69.3 million (+42% YoY) and KFC Moldova with RON 17.4 million (+40% YoY).

Sales generated in Romania amounted to RON 1.14 billion (+30% YoY), followed by Italy with RON 166.3 million (+46% YoY) and the Republic of Moldova with RON 17.4 million (+40% YoY).

Due to efficient cost management, the weight of G&A in sales decreased with 0.8pp in 2022 vs. 2021, despite a 12% YoY increase. As a result, the operating profit reached RON 53.2 million in 2022, a 51% increase compared to 2021.

Another record high in Q4, supporting 2022 overall performance

The positive results in 2022 were heavily sustained by the excellent performance in Q4, a new record high in terms of sales. All store revenues reached RON 369.2 million, a 36% increase compared to Q4 2021, supported by opening of 8 new restaurants during 2022. Due to growing customer presence in stores leading to an increase in transactions overall, together with price adjustments and efficient cost management, Sphera registered EBITDA of RON 43.9 million RON, up by 239% YoY, and a net profit of 23.4 million, compared to a net loss of RON 0.7 million in Q4 2021.