Financial achievements reached by Sphera Group in 2024: record-breaking sales exceeding 1.5 billion RON and a net profit of 97.2 million RON
Sphera Franchise Group Thrives in 2024 Amidst Challenges
In 2024, Sphera Franchise Group (SFG) experienced remarkable financial growth, with its EBITDA soaring to RON 176.9 million, a 19.6% increase from the previous year. This impressive performance was reflected in the Group's share price, which appreciated by 56.8%, significantly outperforming the BET index's 8.78% growth.
SFG's total sales reached over RON 1.5 billion in 2024, marking a 5.4% increase from the year before. The Group's focus on operational efficiency and adaptation to consumer trends, favouring convenience and speed, played a significant role in this success. As the operator of well-known fast-food chains like KFC, Pizza Hut, and Taco Bell, Sphera benefited from growing urban demand for quick service and strong brand recognition.
A critical factor was Sphera's emphasis on customer proximity and optimized last-mile logistics, aligning with the Q-commerce trend. This approach, which values lightning-fast delivery and high product availability, met the expectations of Millennials and Gen Z consumers who prioritize convenience, free shipping, and quick delivery times.
Despite retail challenges such as potential tax changes impacting prices, Sphera maintained operational efficiency and navigated market uncertainty, supporting its business model stability.
KFC Moldova was a standout performer, with Q4 sales reaching RON 7.1 million, up by 25.9% compared to the same period in 2023. KFC Romania also saw impressive growth, with a net profit of over RON 100 million in 2024, a 15.5% increase from the previous year.
However, not all brands within the Group experienced the same level of success. Pizza Hut recorded a slight decrease of 0.5% in Q4 2024 compared to Q4 2023. Despite this, Pizza Hut moved from an operating loss in 2023 to a restaurant operating profit of nearly RON 1 million in 2024.
Sphera's financial success was also evident in its total return, which reached 65% in 2024, compared to the BET-TR index's 16.15% increase. The Group's net profit in 2024 was RON 97.2 million, a 22% increase from 2023. Shareholders received two dividend installments in 2024, each worth RON 1.05 gross per share.
Valentin Budeș, CFO of Sphera Franchise Group, attributed the Group's solid performance in 2024 to its adaptability to challenging external factors and the ability to consistently apply cost management measures.
In summary, Sphera's financial success in 2024 was driven by its adaptation to rapid delivery expectations, leveraging a strong portfolio of franchises, and maintaining logistical effectiveness in a competitive Q-commerce environment. The Group's focus on customer proximity and optimized last-mile logistics, aligning with the broader Q-commerce trend, was a key factor in its success.
In the financial sector, Sphera Franchise Group (SFG) capitalized on the Q-commerce trend by prioritizing customer proximity and optimizing last-mile logistics, resulting in a 65% total return for investors in 2024. As a strategic business move, SFG increased its efficiency in quick service and alignment with consumer demands, recording a net profit of RON 97.2 million and outperforming the BET index.
