Sphera Franchise Group (SFG) Q2 2025 earnings summary

Executive summary

• H1 2025 consolidated sales reached RON 745.2 million, up 0.7% year-over-year, reflecting modest growth amid a challenging economic and political environment.

• Net profit for H1 2025 declined 69% year-over-year to RON 12.6 million, mainly due to higher operating costs and margin compression.

• Normalized EBITDA fell 33% year-over-year to RON 52.8 million, impacted by cost inflation and one-off items.

• 177 restaurants operated across three countries as of June 30, 2025, with 8 new units opened since H2 2024.

• External markets (Italy, Moldova) performed better than Romania, with Moldova showing double-digit growth.

Financial highlights

• Q2 2025 sales were RON 382.6 million, up 2.3% year-over-year; H1 2025 sales at RON 745.2 million (+0.7% YoY).

• Restaurant expenses rose 5.9% year-over-year to RON 691.9 million, outpacing sales growth due to inflationary pressures.

• Normalized EBITDA margin for H1 2025 decreased by 3.6 percentage points year-over-year.

• Net profit for H1 2025: RON 12.6 million (-69% YoY); normalized profit: RON 17.7 million (-56.5% YoY).

• Gross dividend per share paid: RON 1.09 on June 6, 2025.

Outlook and guidance

• 2025 sales guidance revised down to RON 1.6–1.65 billion, 5–8% below the initial budget, due to VAT hikes and cost inflation.

• Normalized EBITDA guidance: RON 140–150 million; normalized profit: RON 63–70 million, both 23–40% below the original budget.

• Free cash flow estimated at RON 62–72 million.

• Management expects continued margin pressure and cautious consumer demand in H2 2025.

• Macroeconomic environment expected to remain difficult, with inflation and fiscal tightening as key risks.