In 2020 the company is expecting to witness a decrease in sales of 29.9% YoY, to RON 669.7m.
Sphera Franchise Group published their Forecasted 2020 budget on the Bucharest Stock Exchange.
The company notes that following the measures taken by the management as a response to the COVID-19 pandemic and the gradual restrictions introduced by authorities regarding the operation of restaurants in Romania, the results of Sphera Franchise Group have recorded a net positive evolution. Therefore, the Company shared the updated forecasts for full year 2020. Sphera notes that new forecasts are much closer to the operational reality than the budget adopted by the Ordinary General Meeting of Shareholders in May 2020.
Source: Sphera Franchise Group
As visible from the table, the company is expecting to witness a decrease in sales of 29.9% YoY, to RON 669.7m. Meanwhile, normalized EBITDA us expected to observe a decrease of 72.4% YoY, to RON 26.5m. Such a result would put the EBITDA margin at 4%.
In the first half of 2020, Sphera was one of the most affected of all BET constituents by the Covid-19 pandemic. The management has previously refrained from providing any updates to the budget or guidance. The new forecasted budget reflects the positive evolution of the company since the lifting of the state of emergency in Romania, the primary market of the activity of Sphera Franchise Group, as well as in Italy.
The company further notes that following actions implemented by the management in the past 6 months have helped improve the performance of the Company: extension of delivery services, improvement of menus, redesigning client and production flows, analysis and improvement of cost and cost structures.
