Sphera Franchise Group Sa · BVB:SFG
Sphera Franchise Group Sa — Q1 2019 Earnings Presentation
22 slides from Sphera Franchise Group Sa's earnings presentation, May 2019
Slide 1: Sphera Franchise Group Interim results: Jan-Mar 2019
Sphera Franchise Group Interim results: Jan-Mar 2019 1
Slide 2: 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 3: Sphera – Q1-2019 key events
Sphera – Q1-2019 key events All-store sales up 26.2% with same-store sales growth of 7.3% ▪ Same-store double-digit growth from KFC, mixed performance of Pizza Hut, normal sales corrections for Taco Bell and KFC Italy Total store openings: none; 4 stores opened until 15-May; on track to deliver full
Slide 4: Macro environment becomes increasingly challenging
Macro environment becomes increasingly challenging Retail sales easing further as CPI resumes growth Annualized CPI (RON) Salaries (Y/Y%) 6% 6,000 100% 5% Average gross salary (Y/Y% change) - rhs 4% 5,000 Average gross salary 80% Minimum salary 3% 4,000 2% 60% 1% 3,000 0% 40% 2,000 -1% -2% 20% 1,000
Slide 5: Sales performance by brands
(Np) Sales performance by brands
Slide 6: Brand performance: KFC Romania
Brand performance: KFC Romania Sales growth analysis ▪ All-store sales growth of 19.5% Y/Y in Q1-2019 30% 26.4% supported mainly by same-store growth of 10.9%; 25% 23.2% ▪ The 8 net openings (since Jan-2018) contributed 21.5% 20.4% 8.6pp to the Y/Y growth in Q1-2019, six of these 19.6%20.1% 19.5% 20
Slide 7: Brand performance: Pizza Hut
Brand performance: Pizza Hut Sales growth analysis ▪ All-store sales growth of 7.3% Y/Y in Q1-2019, 30% 28.0% driven by the 6 stores opened starting Jan-2018 (of which 3 in existing cities); 25% 20% All-store 15.5% performance 15% 11.4% 9.5% 9.8% 10% 8.4% 8.5% 7.3% 5% 0% 2016 2017 2018 Q1 Q2 Q3 Q4 Q
Slide 8: Development
(Np) Development
Slide 9: Development: Restaurant openings in 2019
Development Restaurant openings in 2019 Total stores Openings Total stores QTD1) 2019 Plan BoY Q1-2019 end-2019 openings 78 0 78 8 1 10 0 10 10 1 23 0 23 0 0 22 0 22 1 0 5 0 5 5 2 138 0 138 24 4 9 1) As of 14-May-2019.
Slide 10: Brand news
(Np) Brand news
Slide 11: Brand news: Q1-2019 highlights (KFC)
Brand news Q1-2019 highlights ▪ KFC concentrated its communication on value for Q1, successfully re-launching Smart Menu (a full meal for 13.9 RON) and Ceva (Something) (value bundle for 5 RON) and maintaining double-digit sales growth for the 6th consecutive year; ▪ The brand continued its digital
Slide 12: Brand news: Q1-2019 highlights (Pizza Hut)
Brand news Q1-2019 highlights ▪ Pizza Hut started the year by communicating abundant value through its Pizza Festival all-you-can- eat signature campaign, under the re-positioning tagline “a little crazier, just a little” and enjoyed positive sales growth; ▪ The new menu launched by Pizza Hut last y
Slide 13: Marketing Q1-2019 campaigns
Marketing Q1-2019 campaigns 13
Slide 14: Financials
Financials
Slide 15: Financial performance: Q1-2019 Statement of comprehensive income
Financial performance: Q1-2019 Statement of comprehensive income ▪ Sales up 26.1% Y/Y on strong performance from KFC Romania/Moldova (+19.6% Y/Y, 15.0pp contribution), with significant contrib ution from KFC Italy (7.7pp) and increasing contributions from the new businesses (KFC Italy and Taco Bell)
Slide 16: Impact of IFRS 16 - Leases on Q1-2019 results
Financial performance: Q1-2019 Impact of IFRS 16 - Leases on Q1-2019 results ▪ Starting 1 January 2019, Sphera applied IFRS 16 that sets out the principles for the recognition, measurement, presentation and disclosure of leases. Sphera uses the modified retrospective approach for this transition, th
Slide 17: Statement of comprehensive income (excluding IFRS 16)
Financial performance: Q1-2019 Statement of comprehensive income (excluding impact of IFRS 16 adoption) ▪ Sales up 26.1% Y/Y on strong performance from KFC Romania/Moldova (+19.6% Y/Y, 15.0pp contribution), with significant contrib ution from KFC Italy (7.7pp) and increasing contributions from the n
Slide 18: Breakdown of results by Group companies
Financial performance: Q1-2019 Breakdown of results by Group companies Data in RON'000 USFN (RO) ARS USFN (MD) USFN (IT) CFF SFG Cons.Adj SFG Cons. Restaurant sales 156,561 32,157 2,742 17,203 5,750 6,123 (5,812) 214,725 Restaurant expenses 135,151 31,075 2,186 17,953 5,580 0 (14) 191,931 Food and m
Slide 19: Breakdown of results by Group companies (excluding IFRS 16)
Financial performance: Q1-2019 Breakdown of results by Group companies (excluding impact of IFRS 16 adoption) Data in RON'000 USFN (RO) ARS USFN (MD) USFN (IT) CFF SFG Cons.Adj SFG Cons. Restaurant sales 156,561 32,157 2,742 17,203 5,750 6,123 (5,812) 214,725 Restaurant expenses 135,853 31,156 2,195
Slide 20: Restaurant operating expenses and margin
Financial performance: Restaurant operating expenses and margin Including the impact of IFRS 16 adoption Contribution to change in restaurant opex ratio* Y/Y% % of Sales Data in RON'000 Mar-19 Mar-18 2019/2018 Mar-19 Mar-18 Δ% Restaurant expenses 191,931 144,119 33.2% 89.4% 84.7% 4.7% Food and mater
Slide 21: Financial performance: Q1-2019 G&A expenses
Financial performance: Q1-2019 G&A expenses Including the impact of IFRS 16 adoption Contribution to growth in G&A expense* Y/Y% % of Sales Data in RON'000 Mar-19 Mar-18 2019/2018 Mar-19 Mar-18 General and adm inistration expenses (net), of w hich: 12,968 12,349 5.0% 6.0% 7.3% Employee benefits 7,27
Slide 22: Consolidated financial performance: Statement of financial position
Sphera – Consolidated financial performance Statement of financial position Excluding impact of Impact of IFRS 16 IFRS 16 adoption adoption Data in RON'000 31-Mar-19 31-Dec-18 Change 31-Mar-19 Assets Non-current assets 422,171 229,173 192,998 238,902 183,269 Property, plant and equipment 347,339 158
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