Romanian franchise group Sphera moves to first-half net loss
BUCHAREST (Romania), August 30 (SeeNews) – Romanian fast food chain Sphera Franchise Group [BSE:SFG] announced on Tuesday a net loss of 8.6 million lei (1.75 million dollars/1.76 million euros) for the first half of 2022, compared to a net profit of 5.2 million lei for the same period of 2021.
Sphera’s operating profit (EBITDA) fell 29% annually in the first half of 2022, to 21.2 million lei, the company said in a press release.
The group’s sales increased by 36% per year in the first half to reach 606 million lei. Sales in the Romanian market increased by 33% year-on-year, sales in Moldova increased by 34%, while sales in Italy increased by 64%.
The group ended the second quarter of 2022 with a positive result, recording an EBITDA of 17.5 million lei (1% increase compared to the same period last year 2021) and a net profit of 2.2 million lei (a decrease of 54% compared to the second quarter of 2021). The drop in net profit in the second quarter of this year 2022 was due
inflationary pressures on the cost side, higher energy prices resulting from the war in Ukraine and a less favorable context than in the same period of 2021, which helped to improve the bottom line, explained the society.
“The excellent revenue performance and positive second quarter result helped recoup some of the losses we incurred in a difficult first quarter of this year. Despite the continued challenges caused by inflation , we managed to successfully offset part of the restaurant expenses in the second quarter of this year, when their shares in total sales increased from 98%, as recorded in the first quarter of 2022, to 95%,” said the CFO of Sphera Franchise Group, Valentin Budes.
Sphera also said it will continue its efforts to improve its earnings performance through strict cost control measures across the group for the remainder of the year to address further challenges from the rising food prices, rising energy costs, wage increases and general. inflationary environment.
Sphera Franchise Group operates a total of 174 KFC, Pizza Hut and Taco Bell restaurants in the Romanian, Italian and Moldovan markets. The group has more than 5,230 employees.
In 2021, Sphera recorded a net profit of 27.4 million lei, compared to a net loss of 2.37 million lei the previous year.
Blue-chip shares of Sphera Franchise Group traded down 2.32% at 12.65 lei as of 1:42 p.m. CET on Tuesday on the Bucharest Stock Exchange.
(1 euro = 4.8652 Romanian lei)