Romanian restaurant group Sphera Franchise Group (BVB: SFG), which owns the KFC, Pizza Hut, and Taco Bell franchises in Romania, Italy, and Moldova, had the best sales quarter in the company’s history in Q2 2022. Revenues throughout this period amounted to RON 327.4 mln (EUR 67.2 mln), a 40% increase relative to the similar period of last year.

The group ended Q2 2022 with an EBITDA of RON 17.5 mln – up 1% relative to Q2 2021 – and a net profit of RON 2.2 mln (a 54% decrease compared to Q2 2021). The lower net profit was caused by inflationary pressures on the cost side and growing energy prices. However, Q2 2022 net profit saw a substantial increase, of RON 13.1 mln, compared to Q1 2022.

Sales in restaurants registered a significant increase in the second quarter. On the other hand, deliveries declined by 10% QoQ, reaching RON 70.3 mln.

“With the lifting of pandemic restrictions, we have achieved the highest share of our own sales channels since the onset of the pandemic, as 81% of all orders in Q2 were delivered in our restaurants or using our own delivery capacity, which allows us to retain a larger part of the sales margin,” Călin Ionescu, CEO of Sphera, said in a press release.

The performance in the second quarter helped recover part of the group’s losses registered in Q1 2022.

Consequently, for the first six months of 2022, the group recorded, compared to H1 2021, RON 606 mln in consolidated revenue (a 36% increase), EBITDA of RON 21.2 mln (a 29% decline), and a net loss of RON 8.7 mln, versus a net profit of RON 5.2 million.

Sphera Franchise Group is listed on the Bucharest Stock Exchange, where its shares have recorded a 30% decline in the last 12 months. The company’s capitalization is currently RON 502 mln (EUR 103 mln, as of August 30).

radu@romania-insider.com

(Photo source: the company)