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Sphera Franchise Group sales advanced 21.6% in the first half of 2018, topping RON 350 million

Key events:
– Strong growth in sales supported by high single-digit like-for-like performance
– KFC was awarded the “Franchise of the Year” at the Yum! International Franchise Convention
– Store development plan is expected to be exceeded, with special focus on KFC Italy

Sphera Franchise Group (“Sphera”) reports consolidated sales of RON 350.1 million for the first six months of the year, representing an increase of 21.6% over the pro-forma sales of the same period of 2017.

This achievement was equally supported by a strong like-for-like performance, which stood at 8.0%, and by the contribution of the 26 (net) new stores that we have opened starting the beginning of 2017. The largest contributor to the sales growth was USFN Romania (operator of KFC brand in Romania), which reported an overall sales increase of 19.8%, while ARS (operator of Pizza Hut in Romania) reported sales higher by 9.1%.

“For Sphera, the first half of the year has been proof that hard work comes with great rewards. This period has seen us navigate new territories, once again, with the opening of a third Taco Bell restaurant in Bucharest and the further expansion of our unit network, in both Romania and Italy. Our high performance not only reflected in our results but has also gained international acknowledgment: we have received the “Franchisee of the Year” award, the highest recognition offered around the globe by YUM! Brands Inc. All of these achievements have been brought to fruition through the relentless work put in by each and every member of our team and we will continue to hold to our commitments, by delivering exceptional quality food at a great price, with excellent service in outstanding locations.”, said Mark Hilton, CEO, Sphera Franchise Group.

Sphera’s normalized EBITDA reached RON 32.3 million, representing a 15.9% decrease compared to the previous year. The main reasons for the reduced profitability were the significant acceleration of the store development pace, including the two new business segments (KFC stores in Italy and Taco Bell in Romania), coupled with a general slowdown of the retail market conditions in the second quarter of the year.

For the second part of the year, Sphera remains confident on its ability to achieve the targeted growth in sales of approximately 25% and expects to exceed the store development commitments for the full year.

“With our passionate team behind us, we continue to outperform ourselves. We had planned to expand with a total of 23 new units, in Romania and Italy. Nonetheless, our most recent reassessment indicates we can expect to open a total of 26 new units, with 3 additional KFC restaurants in Italy. The acceleration of our store development plan is not only a reflection of the significant growth potential, but also of our commitment to excellence”, added Mr. Hilton.