Sphera Franchise Group Sa · BVB:SFG
Sphera Franchise Group Sa — Q1 2023 Earnings Presentation
25 slides from Sphera Franchise Group Sa's earnings presentation, May 15, 2023
Slide 1: Sphera Franchise Group Investor & Analyst Call Q1 2023 Results
Sphera Franchise Group Investor & Analyst Call Q1 2023 Results 15.05.2023
Slide 2: Agenda for today's call
Agenda for today’s call 1 Q1 2023 Highlights 2 Business updates from Q1 2023 3 Brand Performance 4 Q&A session 5 Annex: Key Q1 2023 Financials 2
Slide 3: Disclaimer
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
Slide 4: Welcome to SFG's Q1 2023 Results Call
Welcome to SFG’s Q1 2023 Results Call Calin Ionescu Valentin Budes Monica Eftimie Zuzanna Kurek CEO CFO CMO IR Sphera Franchise Group’s unaudited Q1 2023 are available for download on our website: www.spheragroup.com. The recording of this conference call will be available on our website shortly. Fo
Slide 5: Q1 2023 Highlights
Q1 2023 Highlights NY SPHERA _ Krc @ {3
Slide 6: SFG Performance in Q1 2023
SFG Performance in Q1 2023 • Strong start of the year despite business cyclicity & inflationary context: Q1 is usually a slow period for the food service industry due to the post-holiday season slowdown. Despite the usual business cyclicity and the more challenging economic context of high inflation
Slide 7: SFG Q1 2023 Performance
SFG Q1 2023 Performance 335.1 23.5 3% 322.7 278.6 0. 285.7 +2 3% % 322.7 .6 +1 25 +5 3.8 Q1 2022 Q1 2023 285.7 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Restaurant Sales Expenses (Restaurant + G&A) Normalized EBITDA in RON m in RON m, excl. IFRS16 in RON m, excl. IFRS16 7
Slide 8: SFG Q1 2023 Performance breakdown
SFG Q1 2023 Performance breakdown Contribution to Q1 2023 turnover 12.2% 1.5% 5.9% 9.3% 86.3% 84.8% Per market Per brand 8
Slide 9: Business updates from Q1 2023
Business updates from Q1 2023 9
Slide 10: Development, staff & fiscal updates
Development, staff & fiscal updates Number of stores • 177 restaurants operated: out of which 98 KFC restaurants in Romania, 2 in Moldova and 18 in Italy, as well as 42 Pizza Hut restaurants, 15 Taco Bell restaurants, one PHD subfranchise and one Paul restaurant as of 31.03.2023 • 2 openings: 2 new
Slide 11: Capital markets updates
Capital markets updates SFG evolution on BVB • Increases registered in Q1 2023: SFG shares continued the positive evolution from the end of 2022 in Q1’23, registering a 16.4% increase in the first quarter of the year, as the share closing price on March 31, 2023 was RON 16.3, vs closing price of RON
Slide 12: 2023 Guidance
Nn 2023 Guidance mee Indicator Budget 2023 2022 es pred RON millions (mn RON mn % Sales RON mn % Sales Restaurant Sales (*) 1,600.3 100.0% 1,322.8 100.0% 21.0% Other Income - : 1.2 - - Food and Material 526.2 32.9% 457.1 34.6% 15.1% Restaurant Gross Margin 1,074.0 67.1% 866.9 65.5% 23.9% Restaurant
Slide 13: Marketing
Marketing Pricing adaptation to the market conditions • In the current economic climate, we increased the prices in March for the three brands in order to protect the bottom line and absorb the increased cost of inputs. At the same time, we focused on value offerings to the customer to ensure contin
Slide 14: Marketing
Marketing Pizza Hut: Build sales and increase distinctiveness • With the objective of improving transaction levels, the brand started the year by communicating value through its “small pizza only 5 RON with any medium pizza” which attracted price-conscious consumers and increased trial. • As a secon
Slide 15: Brand performance
Brand performance NY SPHERA _ Krc @ {3
Slide 16: KFC Romania
All Store Performance KFC Romania 37.3% 35.0% 23.6% 20.1% 19.6% • Q1’23 was another strong quarter of consolidation for KFC 20.1% Romania as all store performance improved 20% YoY due to excellent same store results (+18%) paired with the sales generated by the 4 new KFC units that were opened Q1’22
Slide 17: KFC Italy & KFC Republic of Moldova
KFC Italy & KFC Republic of Moldova KFC Italy All Store Performance 70.3% 58.4% • All-stores recorded 22% sales increase in Q1’23 vs. Q1’22, as well as same store performance. 37.5% 31.6% • 8% of all orders in Q1’23 were for delivery, 2pp QoQ decrease. 22.1% • KFC Italy registered restaurant operati
Slide 18: Pizza Hut & Taco Bell
Pizza Hut & Taco Bell All Store Performance Pizza Hut 55.3% 45.5% • The YoY all store performance registered a 10% increase while the same 38.5% store sales increased 8.7%. • 36% of all orders were made for delivery in Q1’23, a 3pp decline QoQ. • Pizza Hut closed Q1’23 with EBITDA of -0.8 mn, howeve
Slide 19: Q&A Session
Q&A Session NY SPHERA _ Krc @ {3
Slide 20: Annex: Key Q1 2023 Financials
Annex: Key Q1 2023 Financials 20
Slide 21: Summary of consolidated Q1 2023 FS
Summary of consolidated Q1 2023 FS 21 Results excl. IFRS16
Slide 22: Summary of consolidated Q1 2023 FS
Summary of consolidated Q1 2023 FS (with and without IFRS 16 impact) 22
Slide 23: Breakdown of Q1 2023 results by entity
Breakdown of Q1 2023 results by entity 23 Results excl. IFRS16
Slide 24: Overview of the Q1 2023 G&A expenses
Overview of the Q1 2023 G&A expenses (with and without IFRS 16 impact) 24
Slide 25: Thank you for joining us!
Thank you for joining us! Sphera Franchise Group’s unaudited Q1 2023 are available for download our website: www.spheragroup.com. The recording of this conference call will be available on our website shortly. For any questions related to Sphera Franchise Group’s activity on the Bucharest Stock Exch
Sphera Franchise Group — Q1 2023 Earnings Presentation on 6ix