SFG
-0.51%
RON39.3
Share price
11 Sep 2024 17:50
Share
SFG
Sphera Franchise Group
-0.51%
RON39.3
More info here read more button

Press release – Sphera Franchise Group estimates 33% higher sales in 2022 compared to 2021 and budgets investments of over EUR 20 million

2022-03-25

Key elements:

• The board of directors of the Sphera Franchise Group approved the 2022 budget and is to be submitted for approval in the ordinary annual shareholders’ General Meeting, which will take place on 28 April 2022;
• Estimates of sales in the restaurants exceed EUR 266 million, up 33% from 2021;
• Normalized EBITDA is estimated to reach EUR 19,2 million, up 31% from the previous level;
• The company will invest EUR 15,5 million this year to open 18 restaurants;
• Another EUR 4,5 million will be invested in remodeling existing units and implementing digital control solutions (such as digital kiosks).

Sphera Franchise Group (“Sphera”), the owner of the companies operating KFC, Pizza Hut, and Taco Bell brands in franchise system in Romania, has budgeted for 2022 sales in restaurants of over EUR 266 million, 33% higher compared to 2021, of which 27% are estimated to be achieved through the delivery channel. Normalized EBITDA is projected to increase by 31% to EUR 19.2 million.

” 2021 was an unpredictable year, and 2022 is expected to be just as challenging in the context of inflation and the economic situation in general. However, our development plans for 2022 remain ambitious and we are confident in our performance. For this year, we have budgeted investments of over 20 million euros in opening new restaurants and remodeling the existing ones”, said Călin Ionescu, General Manager of Sphera.

This budget proposal is based on the macroeconomic context which will be influenced by the effects of the COVID-19 pandemic and takes into account that the Romanian currency will continue to depreciate slightly against the euro, as well as Sphera’s expectations of general inflation of 10% and the increase in the minimum wage as of January 2022.

In terms of development, Sphera will focus on opening 18 restaurants (9 KFC in Romania, 2 KFC in Italy, 4 Pizza Hut, Fast Casual delivery and Express restaurants and 3 Taco Bell), with an estimated investment cost of around EUR 15,5 million. In addition, within the plan negotiated with Yum!, the investment in the remodeling of restaurants and the implementation of digital command solutions (kiosks) was estimated at EUR 4.5 million.

Sphera operates over 170 restaurants in the 3 markets in which is present and has over 4,700 employees.
In 2022, the Group will continue its plans for sustainable development and a new sustainability report for 2020 and 2021 will be published mid-this year.