At the share price before the announcement, this would imply a DY of 3.7%. The ex-date is set for 16 May 2024, while the payment date is set for 6 June 2024. Furthermore, according to the 2024 revenue and expense budget, restaurant sales are expected to grow by 12% YoY, EBITDA is expected to increase by 28.3% YoY, and a net profit of RON 95.7m is estimated, with an increase of 20.1% YoY.

Yesterday, Sphera Franchise Group published the OGSM notice, which included the proposal for the 2024 dividend. According to the proposal, a dividend from the undistributed net profit of 2022 and 2023 would be distributed, implying a gross dividend per share of RON 1.05. At the share price before the announcement, this would imply a DY of 3.7%.

The ex-date is set for 6 June 2024, while the payment date is set for 16 May 2024.

Sphera Franchise Group dividends per share (RON) and dividend yields (%) (2019 – 2024)

Source: Sphera Franchise Group, InterCapital Research

Besides the dividend proposal, the 2024 revenue and expense budget was also discussed. While no detailed report is available, key financial indicators are presented. In terms of restaurant sales, they are estimated at RON 1.65bn, growing by 12.2% YoY. On this, restaurant gross profit of RON 1.12bn is expected, growing by 13.2% YoY. This would imply a gross profit margin of 68%, an increase of 0.6 p.p. YoY.

Moving on, restaurant op. profit of RON 253.4m is expected in the budget, representing an increase of 22.7% YoY, while the G&A expenses are estimated at RON 63.5m, increasing by 8.6% YoY. In terms of the EBITDA, it is expected at RON 189.8m, increasing by 28.3% YoY, and implying an EBITDA margin of 11.5%, an increase of 1.4 p.p. YoY. Finally, a net profit of RON 95.7m is expected, growing by 20.1% YoY, and implying a net profit margin of 5.8%, increasing by 0.4 p.p. YoY.

Sphera Franchise Group key financial indicators (2024 budget vs. 2023, RONm)

Source: Sphera Franchise Group, InterCapital Research