Highlights:

• Sphera Group estimates sales of RON 1.73 billion, 12.1% higher than in 2024
• The sales forecast is based on a rapid pace of network development, with 13 new units planned for 2025, and increased sales in existing restaurants
• The company accelerates its investments, allocating approx. RON 100 million, 71.2% higher than in 2024
• Sphera Group’s net profit is forecast to increase by 8.2%, up to RON 105.2 million
• The budget has been approved by the Board of Directors of Sphera Group and will be subject to approval at the GSM on April 29, 2025

Sphera Franchise Group (stock symbol SFG), the largest group in the food service industry in Romania, budgeted for 2025 increases for the main financial indicators. The company aims to reach restaurant sales of over RON 1,73 billion, up 12.1% compared to 2024, due to a combined effect of positive evolution of same-store sales and new restaurants. Profitability indicators are expected to improve significantly with an increase in net profit of 8.2%, to RON 105.2 million, and EBITDA of RON 194.3 million, 9.8% higher.

„The 2025 budget reflects a well-founded sustainable growth strategy, focused on the expansion of restaurant network, improvement in operational performance and implementation of digital technology. We have planned investments of RON 100 million, significantly higher than last year, to support business development both through the opening of new units, as well as the remodeling of existing ones and digitization. We focus on maximizing profitability and creating a positive and sustainable impact for our shareholders, as well as for all other stakeholders”, stated Calin Ionescu, CEO, Sphera Franchise Group.

Cost management remains a priority for the company, with a focus on operational efficiency. Raw materials and ingredients expenses are expected to increase by 9.6%, below the growth rate of sales, which will contribute to streamlining restaurant gross margins. The share of general and administrative expenses in total sales will be slightly lower in 2025 compared to 2024, at 3.8%.

Sphera Group accelerates investments in 2025 and allocates around RON 100 million for development, higher by 71.2% compared to the previous year. The amount will cover the expansion of the network with new restaurants, as well as investments in remodeling the existing ones and digitalization. Sphera Group plans to open 13 new units this year: 4 KFC restaurants and 1 Taco Bell in Romania, 1 KFC in The Republica of Moldova, as well as 3 KFC and 4 Cioccolatitaliani units in Italy.

The 2025 budget is approved by the Board of Directors and will be subject to approval at the Annual General Shareholders Meeting on April 25, 2025. It was drafted under the presumption of a normal course of business and considering an average inflation of 5%.