Sphera Franchise Group (SFG) Q3 2025 earnings summary

Executive summary

• Consolidated sales for 9M 2025 reached RON 1,151.1 million, up 0.7% year-over-year, with Q3 sales at RON 405.9 million, a 0.6% increase, despite macroeconomic and fiscal pressures in Romania.

• Net profit for 9M 2025 declined 46.7% year-over-year to RON 38 million, mainly due to higher operating expenses, margin compression, and cost inflation.

• Normalized EBITDA for 9M 2025 was RON 96.2 million, down 25.5% year-over-year, reflecting cost pressures and one-off items.

• Group expanded its portfolio by acquiring Hard Rock Cafe franchise rights, planning five new locations in Romania and Moldova starting 2026.

• Recognized as one of Europe's long-term growth champions by the Financial Times and Statista.

Financial highlights

• Restaurant expenses for 9M 2025 rose 4.9% year-over-year to RON 1,051.9 million, outpacing sales growth.

• Q3 2025 EBITDA was RON 43.6 million, down 12.9% year-over-year but up 65.5% sequentially from Q2 2025.

• Food and material costs increased 1.9% year-over-year, payroll and employee benefits rose 10.2%, and advertising expenses decreased 7.9% in 9M 2025.

• Restaurant operating profit for 9M 2025 was RON 102.1 million, down 28% year-over-year.

• Net finance costs decreased by 22.9% year-over-year, and income tax expense dropped 44.4% year-over-year.

Outlook and guidance

• Management expects continued external pressures in Romania due to fiscal measures, inflation, and consumer caution, with these trends likely to persist into Q4 2025 and 2026.

• No further price adjustments planned for the remainder of 2025; focus remains on operational efficiency.

• First Hard Rock Café opening planned for late 2026, with financial impact expected from 2027.

• Committed to sustainable growth, diversification, and adapting to evolving consumer behavior.