Sphera Franchise Group Sa · BVB:SFG
Sphera Franchise Group Sa — Q1 2020 Earnings Presentation
21 slides from Sphera Franchise Group Sa's earnings presentation, May 2020
Slide 1: Interim results: Jan-Mar 2020
Sphera Franchise Group Interim results: Jan-Mar 2020 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 – Q1-2020 key events
Sphera – Q1-2020 key events The beginning of 2020 was dominated by the outbreak of the novel coronavirus (COVID-19) epidemics across the world ▪ Tough restrictions on individual circulation and economic activity enforced since mid-March Restaurant industry was among the hardest hit sectors as it fac
Slide 4: Current status of operations
Current status of operations
Slide 5: Top line performance
Top line performance Sphera consolidated restaurant sales (Y/Y% change) 40% 20% 0% -20% -40% -60% -80% Jan Feb Mar Apr May -100% W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 W16 W17 W18 W19 Active stores All stores 5
Slide 6: Active restaurants
Active restaurants Top line performance significantly improved in recent weeks Restaurant count 81 2 16 23 22 10 154 Active restaurants - @ 18-Mar 30 1 0 0 15 0 46 - @ 14-May 46 1 10 5 15 5 82 Impact on revenues - 3-wk to 5-Apr -80% -80% -100% -100% -33% -95% -80% - 3-wk to 10-May -65% -65% -60% -95
Slide 7: Actions taken so far
Actions taken so far Business calibration initiatives ▪ Enhanced cooperation with local food aggregators, by using their delivery logistics capabilities and joint marketing Revenue generation actions; ▪ Dedicated marketing campaigns for promoting the delivery and drive-through channels ▪ Value offer
Slide 8: Assistance from stakeholders
Assistance from stakeholders We are leveraging all possible help from our key stakeholders Government support Lender support / Liquidity enhancement Franchisor support • Romanian Government: State coverage • Activation of existing working capital line opened • Ongoing discussions on the of the indem
Slide 9: CSR
CSR Sphera got involved in supporting the fight against coronavirus Donation of 100.000 euro to the Romanian Red KFC and Pizza Hut food donation for part of the Following the closing down of most of our Cross for the acquisition of medical equipment employees of the Public Health Direction restauran
Slide 10: Brand performance: KFC
Brand performance: KFC Sales evolution ▪ All-store sales dipped 9.9% Y/Y in Q1-2020, 30% 21.5% 19.5% 18.9% following the 48% crash in March as a result of 15.9% 20% 13.5% 12.6% travel and activity restrictions; 10.9% 10% ▪ 29 out of 81 stores were still operational as at the All-store end of March (
Slide 11: Brand performance: Pizza Hut
Brand performance: Pizza Hut Sales evolution ▪ All-store sales dipped 15.8% Y/Y in Q1-2020, 20% following the 53% crash in March as a result of 9.5% 7.3% 7.3% 7.4% 6.7% 7.5% travel and activity restrictions; 10% 3.6% ▪ All Pizza-Hut Dine-in stores were closed starting 0% All-store March 18; -10% per
Slide 12: Financials
Financials
Slide 13: Financial performance: Q1-2020 Statement of comprehensive income
Financial performance: Q1-2020 Statement of comprehensive income ▪ Sales down 7.6% Y/Y following the closure of restaurants starting mid-March; ▪ Restaurant operating profit down 65% Y/Y, with margin down 6.6pp due to lower sales; ▪ G&A expenses up 6.6% Y/Y, reaching 7.0% of sales (up 0.9pp Y/Y); ▪
Slide 14: Impact of IFRS 16 - Leases on Q1-2020 results
Financial performance: Q1-2020 Impact of IFRS 16 - Leases on Q1-2020 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 15: Statement of comprehensive income (excluding IFRS 16)
Financial performance: Q1-2020 Statement of comprehensive income (excluding impact of IFRS 16 adoption) ▪ Sales down 7.6% Y/Y following the closure of restaurants starting mid-March; ▪ Restaurant operating profit down 66% Y/Y, with margin down 6.6pp due to lower sales; ▪ G&A expenses up 6.7% Y/Y, re
Slide 16: Financial performance: Margin trend (Quarterly and YTD)
2019-Q1 6.1% 2019-Q1 26.1% Q2 5.9% Q2 28.4% Q3 6.4% Q3 23.5% Q4 6.1% Q4 18.6% 2020-Q1 6.8% 2020-Q1 -7.6% Quarter Quarter Q2 Q2 Q3 Q3 Q4 Q4 2019-Q1 6.1% 2019-Q1 26.1% Q2 6.0% Q2 27.3% Normalized G&A ratio Q3 6.1% Q3 25.9% Q4 6.1% Q4 23.8% Restaurant sales - Y/Y% growth YTD YTD 2020-Q1 6.8% 2020-Q1 -7
Slide 17: Breakdown of results by Group companies
Financial performance: Q1-2020 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 141,061 27,081 2,345 19,205 8,394 7,324 (7,096) 198,314 Restaurant expenses 127,512 29,319 2,155 22,803 8,809 483 (684) 190,396 Food an
Slide 18: Breakdown of results by Group companies (excluding IFRS 16)
Financial performance: Q1-2020 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 141,061 27,081 2,345 19,205 8,394 7,324 (7,096) 198,314 Restaurant expenses 128,145 29,168 2,107
Slide 19: Restaurant operating expenses and margin
Financial performance: Q1-2020 Restaurant operating expenses and margin Including the impact of IFRS 16 adoption Contribution to change in restaurant opex ratio* Δ% % of Sales Data in RON'000 Mar-20 Mar-19 2020/2019 Mar-20 Mar-19 Δ% Restaurant expenses 190,396 191,931 -0.8% 96.0% 89.4% 6.6% Food and
Slide 20: G&A expenses
Financial performance: Q1-2020 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-20 Mar-19 2020/2019 Mar-20 Mar-19 General and adm inistration expenses (net), of w hich: 13,824 12,968 6.6% 7.0% 6.0% Employee benefits 8,90
Slide 21: 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-20 30-Dec-19 Change 31-Mar-20 Assets Non-current assets 521,139 508,730 12,408 287,983 233,156 Property, plant and equipment 203,888 199,
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