Sphera Group achieved record sales of 1.47 billion RON, up 11 percent in 2023

Sphera Franchise Group (stock symbol SFG), the largest group in the food service industry in Romania, closed its best year ever, with sales of 1.47 billion RON and improved profitability indicators – normalized EBITDA up 44.1 percent compared to 2022, at 147.9 million RON, and normalized net profit up 80.3 percent compared to the previous year, at 79.8 million RON.

“2023 was a year full of achievements. We continued to grow and opened 8 new units, became the first local chain to reach the 100 restaurants mark, brought varied menu innovations, optimized and became more efficient. All the while, we have remained a benchmark for sustainability. And challenges were present – we faced high inflation, unexpected tax increases and a tight labor market. But the results are in line with the extraordinary work of over 5,100 colleagues in Sphera – we have record sales and remarkable increases in profitability indicators. This year is also marked by uncertainty, but I am confident that our 30-year experience will sustain our growth trend and we will continue to bring good news in 2024,” stated Călin Ionescu, CEO, Sphera Franchise Group.

The biggest contribution to Sphera Group’s financial results last year was made by KFC Romania, which exceeded the 1 billion RON sales in 2023, an increase of 12.5 percent over 2022. On the course of an excellent fourth quarter 2023, with an EBITDA profitability margin of 15.7 percent, the Group’s flagship brand ended the year with a net profit of 86.8 million RON (+26.5 percent).

Taco Bell reached break-even and ended 2023 with a profit, as a result of 22 percent higher sales and triple-digit increases in restaurant operating profit (+148.6 percent) and EBITDA (+139.3 percent). Also for Taco Bell, the final quarter of 2023 was notable, with an EBITDA margin of 11.7 percent.

SFG shares continued their positive evolution in Q4 2023, with an increase of 24.2 percent, the best performance among all companies included in the BET index. Considering the dividend paid to shareholders on October 10th, the total return on SFG shares in Q4 2023 was 29.8 percent.

In 2023, SFG shares were the 3rd top performer from the BET index, appreciating 83.6 percent and significantly outperforming the BET index, which grew 31.8 percent. The total return on SFG shares in 2023, including the dividends paid on March 31st, 2023, and October 10th, 2023, was 95.5 percent.