Slides
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Sphera Franchise Group Investor & Analyst Call 2024 Preliminary Results 28.02.2025
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Agenda for today’s call 2 Brand performance 4 3 Q&A session Business updates 2 1 2024P Highlights
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Disclaimer This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of shares issued by Sphera Franchise Group SA ("Sphera"), or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy shares in Sphera. Neither this presentation nor anything in it shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice or recommendation to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider this presentation in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. Sphera has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This presentation should not be considered a comprehensive representation of Sphera's business, financial performance or results. This presentation may contain forward-looking statements. These statements reflect Sphera’s current knowledge and its expectations and projections about future events and may be identified by the context of such statements or words such as “anticipate,” “believe”, “estimate”, “expect”, “intend”, “plan”, “project”, “target”, “may”, “will”, “would”, “could” or “should” or similar terminology. Sphera undertakes no obligation to update or revise these forward–looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions may not materialize, and un-anticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks. Therefore, the final results achieved may vary significantly from the forecasts, and the variations may be material. 3
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Welcome to SFG 2024P Results Call Călin Ionescu Chief Executive Officer Valentin Budeș Chief Financial Officer Zuzanna Kurek Investor Relations Officer 4
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2024P Results Highlights 5
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RON 404.9 mn +2.7% vs. Q4 2023 Key 2024P Highlights 6 excl. IFRS16 2024P Consolidated Sales RON 365.9 mn +9.2% vs. Q1 2023 RON 374.1 mn +3.8% vs. Q2 2023 RON 1,548.4 mn +5.4% vs. FY 2023 RON 403.4 mn +6.4% vs. Q3 2023 RON 1,333 mn +5.4% vs. 2023 RON 191.7 mn +4.3% vs. 2023 RON 23.7 mn +15% vs. 2023 RON 1,348.1 mn +6.2% vs. 2023 RON 108.4 mn -5.9% vs. 2023 RON 91.9 mn +8.7% vs. 2023
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Evolution of key indicators 7 2023 2024 5% 1% Expenses (Restaurant + G&A) Normalized EBITDA in RON m, excl. IFRS16 Restaurant operating profit 2023 2024 2023 2024 337.8 322.7 23.5 39.8 27.4 44.6 69%63% Q1 347 342.5 Q2 33.3 43.2 30% 28.8 39.1 36% 159.6 194.7 176.9 147.9 20% 22% 1,420.2 3% 1,372.2FY 50.1 42.4 18% 40.0 54.1 35% 365.2355.3 3% Q3 Q4 351.7 370.2 5% 59.0 52.8 10% 53.2 47.9 10%
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Q4 2024 key financials Data in RON’000 Q4’24 Q4’23 Y/Y % Restaurant sales 404,935 394,436 2.7% Other restaurant income 1,001 - - Restaurant expenses 353,125 335,449 5.3% Restaurant operating profit 52,811 58,986 -10.5% General & Admin expenses 17,109 16,285 5.1% EBITDA 47,905 53,218 -10.0% Normalized EBITDA 47,905 53,233 -10.0% Operating profit 35,702 42,701 -16.4% Finance costs 2,875 2,772 3.7% Finance income 231 48 382.0% Profit before tax 33,059 39,978 -17.3% Income tax expense 7,281 3,799 91.7% Profit for the period 25,777 36,179 -28.7% Normalized profit for the period 25,777 36,751 -29.9% Q4 2024 was the strongest quarter in the company’s history, surpassing the RON 400 million sales milestone for the second time in a single year at the quarterly level. 8 Normalized EBITDA margin decreased 1.7 pp YoY, due to higher restaurant operating costs. Restaurant expenses saw a 5.3% increase YoY to RON 353.1 million, driven by payroll costs, higher 10.3% YoY, reflecting industry-wide adjustments. Net profit decreased 28.7% YoY, to RON 25.8 million in Q4 2024, impacted by almost doubling of the income tax, primarily due to USFN Romania becoming an income taxpayer. in RON m, excl. IFRS16 Food and material costs remained almost flat despite the sales increasing 2.7% YoY.
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2024P key financials 9 Normalized EBITDA margin boost with 1.4pp from 10.1% in 2023 to 11.4% in 2024. Food and material costs increased by mere 0.9% YoY, to RON 483.6 million, decreasing their weight in sales with 1.4pp. The net profit grew 35% YoY, to RON 97.2 million, with normalized profit increasing 22% (normalization impacting only 2023). in RON m, excl. IFRS16 The normalized operating profit increased 24.7% YoY, to RON 130.4 million in 2024. Restaurant expenses saw a moderate, 3.5% increase YoY to RON 1,356 million, reducing their weight in sales by 1.6pp YoY, down to 87.6%. Record sales in 2024, with turnover overpassing RON 1.5 billion milestone for the first time in history. The net debt/EBITDA ratio reached the lowest level in history for the yearend, of 0.25. Data in RON’000 2024P 2023A Y/Y % Restaurant sales 1,548,382 1,469,172 5.4% Other restaurant income 2,280 - - Restaurant expenses 1,355,965 1,309,595 3.5% Restaurant operating profit 194,698 159,577 22.0% General & Admin expenses 64,274 62,655 2.6% EBITDA 176,892 145,290 21.8% Normalized EBITDA 176,892 147,937 19.6% Operating profit 130,424 96,923 34.6% Finance costs 10,393 11,772 -11.7% Finance income 564 1,239 -54.5% Profit before tax 120,596 86,389 39.6% Income tax expense 23,410 14,410 62.5% Profit for the period 97,185 71,979 35.0% Normalized profit for the period 97,185 79,680 22.0%
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Business updates 10
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11 Business NOTE: 1 PHD sub-franchise not included above. Food Court In Line Drive-through Network as of 31.12.2024 In Q4 2024, Sphera opened a new restaurant in Bucharest, Taco Bell, located in Plaza Romania Mall. Overall, in 2024, Sphera Franchise Group inaugurated 7 new restaurants – 6 KFC locations, of which 5 new stores were inaugurated in Romania and 1 in the Republic of Moldova, and 1 Taco Bell store in Romania. As of December 31st, 2024, Sphera Franchise Group operated 173 restaurants: 107 KFC restaurants in Romania, 3 in Moldova and 18 in Italy, as well as 28 Pizza Hut restaurants, 16 Taco Bell restaurants, and one Pizza Hut Delivery sub-franchise. 71 24 33 16 21 7
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12 Brands portfolio In Q4 2024, the Group announced the expansion of its portfolio by adding the Cioccolatitaliani franchise, part of Gioia Group. The franchising rights are held by Choco Franchise SRL, a newly established entity in Italy, fully owned by US Food Network Italy. The Group plans to develop the franchise on the Italian market, with the first unit to be opened in the first half of 2025, after an investment of approximately EUR 0.5 million. The Group estimates cca. 4 new openings per year over the following 5 years, initially focusing on the northern regions of Italy. Expansion to Romania is also considered, as the agreement signed with Gioia Group also covers this market, but the timing depends on the local economic conditions.
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13 Capital markets BET: +8.8% BET-TR: +16.2% SFG: +56.8% SFG-TR: +65.0% Liquidity: +186.8% YoY 2024 evolution share price vs. market Supplementary RON 1.05 gross dividend per share was paid on November 7th 2024; the total DivY for 2024 amounted to 5.6% considering the June and November 2024 dividend payouts. In Q4 2024, SFG shares continued to appreciate – growing 2% , while the BET index decreased 5.1%. 125,878 shares were bought back from the market between Nov'24 and Jan'25, for RON 4.98 million. The process of cancelling the shares will be initiated, estimated for completion in 2025.
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Brand performance 14
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Marketing KFC 15
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Sales brand performance: KFC 16 19.5% 7.5% 7.9% 5.6% 7.2% 0.5% 0.6% -2.4% 19.6% 10.5% 10.7% 10.5% 12.8% 4.8% 7.6% 1.2% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Same store All store 22.1% 14.4% 9.2% 0.6% 5.7% 4.4% 1.7% 5.7% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Same store / All store 42.7% 19.7% 8.9% 9.9% 12.4% 10.8% 7.5% -2.4% 9.4% 25.9% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Same store / All store All store
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Sales brand performance: Pizza Hut 17 10.0% -6.2% -9.8% -16.6% -12.0% -7.6% -2.9% -0.5% Same store / All store Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24
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Sales brand performance: Taco Bell 18 40.6% 19.9% 19.1% 13.3% 5.4% 2.6% 13.1% 8.7% 12.9% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Same store All store
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Evolution of orders for delivery 19 18% 16% 16% 17% 18% 17% 16% 17% 8% 7% 6% 8% 9% 8% 8% 12% 31% 30% 30% 31% 32% 33% 34% 30% 36% 34% 35% 36% 36% 38% 35% 36% 30% 28% 23% 24% 27% 26% 25% 23% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 KFC RO KFC IT KFC MD PH RO TB RO
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Q&A session 20
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21 Sphera Franchise Group’s consolidated preliminary 2024 results are available for download our website: www.spheragroup.com. The recording of this conference call will be available on our website shortly. For any follow-up questions related to Sphera Franchise Group’s activity on the Bucharest Stock Exchange, please contact Zuzanna Kurek, IRO, at: investor.relations@spheragroup.com. Thank you for joining us!