Sphera Franchise Group (SFG), which operates KFC, Pizza Hut, and Taco Bell restaurants under franchise in Romania, Italy and Moldova, recorded revenues of RON 710 million (EUR 145 mln) in 2020, down by 25.6% compared to the previous year.

Still, the company managed to end the year with only RON 2.3 mln (under EUR 0.5 mln) net losses while its EBITDA remained well in the positive area - RON 44.1 mln (EUR 9.1 mln).

The year before, it posted RON 64.2 mln (EUR 13.8 mln) net profit at RON 955 mln (EUR 205 mln) revenues.

"2020 was a challenging year for the HoReCa sector across the world, yet the results from Q4 2020 show signs of continued recovery," a Group's statement reads.

The group managed to generate net profits in the last quarter of 2020 (RON 2.4 mln), although its revenues lagged by over 20% compared to the same period of 2019.

The full-year result is well-above the revised estimate, as communicated in the report published on October 22, 2020, and was determined by business decisions that helped maximize the group's sales in the second half of the year, such as a higher focus on deliveries, reads the report published on February 26.

In 2020, the group inaugurated five new KFC restaurants in Romania, three new KFC stores in Italy, and one new Taco Bell in Romania.

Following negotiations with Yum!, Brands Inc., KFC Romania has six more restaurants to open by the end of 2021.

At the end of 2020, Sphera had 158 restaurants, of which 138 were in Romania, 18 in Italy, and 2 in the Republic of Moldova.

SFG has a market capitalization of RON 593 mln (EUR 121 mln), and its shares rose by 7.5% year-to-date. On February 26, though, upon the 2020 report, its shares dropped by 2.24%

(Photo courtesy of the company)

andrei@romania-insider.com