Sphera Franchise Group doubles profitability in the first semester

Sphera Franchise Group, the largest group in the food service industry in Romania, has recorded a net profit of 40.6 million RON, up 109.4 percent in the first six months of 2024. The first half of 2024 was the best first semester in its history in terms of sales, EBITDA, and net profit. Compared to the same period last year, the Group saw a 6.4 percent increase in sales (reaching RON 740 million) and more than doubled its net profit. Sphera Group also achieved double-digit increases in restaurant operating profit and EBITDA.

“In the first half of the year, we achieved very good financial results despite the less than favorable market conditions, including higher-than-expected inflation and cautious consumer behavior. Our performance once again demonstrates the strength of our strategy and the power of the brands in our portfolio, all supported by an exceptional team, whom I thank for our success today. As we look to the future, we remain confident that our solid strategy, strong team, and 30 years of experience will continue to deliver results.”, said Călin Ionescu, CEO at Sphera Franchise Group.

The Romanian market was the main contributor to the Group’s performance in H1 2024, generating sales of RON 639.5 million, which accounted for more than 86 percent of the total sales. KFC Romania is the most valuable asset in Sphera’s portfolio, with restaurant sales reaching RON 544 million, up by 8.6 percent year-on-year.

Profitability also significantly improved, with EBITDA showing a strong upward trend, rising to RON 78.9 million in the first half of 2024, up 50.7 percent yoy. This was mainly driven by the performance of KFC Romania, which saw a 50.7 percent increase year-on-year, reaching RON 70.3 million in EBITDA. Additionally, KFC Moldova also experienced a double-digit increase (+57.3 percent), while Taco Bell more than doubled its EBITDA (+110.2 percent).

This improvement was mainly due to effective cost-control measures implemented throughout the Group. As a result, the share of restaurant expenses in total sales decreased by 3 percentage points. All brands saw double digit increases in restaurant operating profit, except for Pizza Hut.

The Group’s net profit in H1 soared by 109.4 percent compared to the same period in 2023, reaching RON 40.7 million. This doubling in profitability was fueled by operational expansion and continued efficiency measures. KFC Romania was the main driver of this result, earning a profit of RON 45.9 million, up 74.4 percent compared to the same period last year.

The performance in the first semester is due to both network expansion and same store sales growth. The Group opened 7 new KFC restaurants between June 30, 2023 and June 30, 2024, all in Romania, while two additional openings took place in July 2024. The net debt to EBITDA ratio remains at a reduced level of 0.4.