• New record: sales of RON 1.14 billion in the first 9 months, higher by 6.4% compared to the same period in 2023

• Normalized net profit increase of 66.3% compared to 9 months 2023, to RON 71.4 million, almost 90% of the normalized profit of the entire previous year

• EBITDA margin reached 11.3% in the first nine months

• Best third quarter ever in terms of sales, EBITDA and net profit

• In October, Sphera acquired the franchise rights for the Cioccolatitaliani brand

Sphera Franchise Group, the largest group in the food service industry in Romania, ended the first nine months of 2024 with record sales of over RON 1.14 billion, 6.4% higher than the same period last year. The normalized net profit at Group level was RON 71.4 million in the first 9 months of the year (+66.3% compared to the similar period in 2023) and represents almost 90% of the normalized profit obtained in the entire year 2023.

“We are growing quarter after quarter, surpassing previous records, and these new thresholds are becoming historical milestones that redefine the altitude of the company's performance for the future. This evolution speaks not only of the Group’s stability, but also its flexibility to invest in continuous expansion and innovation, which allows us to respond promptly and efficiently to consumer expectations. We continue to strengthen our presence in Romania and on international markets and are well prepared to support sustainable development and create added value for our shareholders and partners,” stated Călin Ionescu, CEO, Sphera Franchise Group.

Sphera also recorded an important increase in normalized EBITDA, which went up 36.2% in the first nine months of 2024 compared to the same period last year, to RON 129 million. The very good results were reflected in an excellent EBITDA margin of 11.3% in the first nine months of the year.

Most of the revenue was generated in Romania, where sales of RON 986.7 million were recorded, 86.3% of the total, while the market in the Republic of Moldova had the highest growth, of 10.9% compared to the same period from 2023. These results reflect consistent performance and stable expansion in key markets.

With five new units opened since the beginning of the year, KFC Romania maintains its leading position in Sphera Group's portfolio, registering in the first nine months double-digit increase in normalized net profit (+45.9%, up to RON 74.9 million) and normalized EBITDA (+37.1%, up to RON 112 million), while total sales stood at RON 840 million.

In the Republic of Moldova, KFC opened the third unit in September, consolidating its presence in this market where the brand reports remarkable progress. Normalized net profit had an advance of almost 29% and an EBITDA margin of 19.3% in the first nine months of this year.

KFC Italy continues to grow at a moderate pace, with a 7.2% increase in normalized net profit to RON 1.3 million. Sales reached RON 140 million in January-September 2024 compared to the same period in 2023.

Taco Bell maintains the profitability trend it registered in the 2nd semester of last year, when it reached the break-even point, capitalizing on its continuous investments in development since entering the Romanian market. The profit of RON 2.1 million and the strong growth of EBITDA of 83.8% in the first nine months compared to the similar period in 2023 confirm the brand's ability to contribute in the long term to the Group's performance.

Pizza Hut continued to optimize its business, and the results show its potential to recover at a sustained pace. At the end of the nine months, the restaurant operating loss was only RON 0.3 million, an improvement of 96.3% compared to the previous year. Moreover, in the third quarter, the brand recorded a restaurant operating profit of approximately RON 1 million and reduced the net loss to only RON 0.9 million.

T3, a new record trimester

The performance in the first nine months of the year comes on the back of the best Q3 ever in terms of sales, EBITDA and net profit. Moreover, sales, at RON 403 million, represent a record level for the quarter. In terms of profitability, the Group recorded a significant, double-digit increase in both restaurant operating profit (+35.4%, to RON 54.1 million) and normalized net profit (+30.8 %, to RON 30.8 million).

“The results of the first nine months demonstrate our continued progress, highlighting the strong foundation on which we have built our strategy. We have solid results across brands and markets. By streamlining costs, we significantly improved profit margins, strengthening the ability to generate added value for all stakeholders. We continue to grow our restaurant network at a steady pace, but we are also expanding our portfolio to ensure a broad and diverse base for future growth. We are confident that our integrated approach focused on optimizing operations and capitalizing on strategic investments will support the Group's long-term performance,” declared Valentin Budeș, CFO, Sphera Franchise Group.

In October, Sphera Group acquired the franchise rights for Cioccolatitaliani, a premium brand of chocolate products. It will be developed in a first phase in Italy, but also in Romania, later, depending on performance and local economic conditions.

Strong evolution in the capital market

Sphera Franchise Group shares continue to significantly outperform the stock market. During the first 9 months of 2024, SFG shares appreciated by 53.7%, compared to a 14.6% increase in the BET index, and the stock's total return, including dividends paid on June 6, 2024, was 57.8%, compared to a 22.3% increase in the BET-TR index. In the same time frame, liquidity has increased significantly, with the volume of SFG shares traded being double that of the same period in 2023, while the total value of transactions has almost quadrupled.

Note: When analyzing the performance of the Group, the management focus is on the financial results that exclude the impact of IFRS 16. Therefore, the basis for the financial analysis is the results excluding IFRS 16.

*This is a press release.