We decided to bring you a summary of the CROBEX and SBITOP components to see their year-to-date changes coupled with an overview of YTD sectoral performance.

Observing the main CROBEX components, 9 out of 11 recorded a double-digit change, with all of them showing a declining trend. The most considerable YTD change was recorded by RIVP, OPTE and ADPL share with a change of -49.9%, -46.4% and -45.5%, respectively. On the other hand, two observed CROBEX constituents showed only one-digit change, namely PBZ and HT, with a decrease of -4.2% and -3.4%, respectively.

YTD Performance of CROBEX Components (%)

Looking at the main SBITOP components, all main shares demonstrated a double-digit decrease. The most significant YTD movement was by registered NLBR, CICG and LKPG share with a change of -38.1%, -30.7% and -27.0%, respectively. Meanwhile, KRKG was the only observed share with a decrease of less than 20%, more precisely -17.5%.

The main ZSE index CROBEX recorded a decline of -30.8%, while the main LJSE index SBITOP decreased -23.7%.

Meanwhile, observed CROBEX components showed on average slightly larger YTD change (-27.8%) compared to SBITOP constituents (-26.0%).

YTD Performance of SBITOP Components (%)

Turning our attention to sectors in the region, construction was the most heavily impacted industry with a -36.4% YTD change, followed by shipping (-31.7%), banking (-30.8%) and tourism sector (-30.6%). The least YTD impact had food (-14.7%), pharma (-15.8%), utility (-20.6%) and insurance industry (-21.2%). When looking at the graph below, it seems that the sectors which observed the highest decrease are mostly the ones which investors deem will be mostly affected by the ongoing Covid-19 situation (and the other way around).

Note that the below displayed figures represent an average share price change of companies in our broader coverage (Croatia, Slovenia, Romania, Serbia, Bulgaria).

YTD Performance of Sectors in the Region (%)

At the current share price, dividend yield is 3.9% for both regular and preferred share.

Končar D&ST published a document on the Zagreb Stock Exchange in which the company proposed the distribution of net income for the year 2019. Of the 2019 net income, the company proposed to pay out HRK 19.25m as dividends, which represents a payout ratio of 39%. Such a dividend payout translates into HRK 37.66 per share. At the current share price, dividend yield is 3.9% for both regular and preferred share.

In the graphs below, we are bringing you a historic overview of the company’s dividend per share and dividend yield.

Sphera’s consolidated restaurant sales have dropped by approximately 33% YoY during the 1-22 March period and by approximately 75% YoY during the 16-22 March period.

Sphera Franchise Group published a document on the Bucharest Stock Exchange announcing that as a result of the gradual closing of the stores, Sphera’s consolidated restaurant sales have dropped by approximately 33% YoY during the 1-22 March period and by approximately 75% YoY during the 16-22 March period.

Romania

35 KFC stores have been initially closed starting 18 March, which have increased to 53 starting 23 March (after the Government decided on the closure of all commercial centers). As a result, as of 23 March, there are 29 KFC stores operating only through their Drive-Thru and Delivery channels (15 Drive-Thru, 8 Street, 6 Foodcourt).

All 23 Pizza Hut Dine-in stores have been closed since 18 March. As many as 15 out of the 22 Pizza Hut Delivery stores are operational.

All 10 Taco Bell stores have been closed since 18 March.

Italy – All 16 KFC Italy stores have been closed since 12 March.

Moldova – Both KFC restaurants are closed but are providing delivery services from one store.

Measures to contain the impact

As of 23 March, the key critical measures implemented or on course of implementation are the following:

• Sending all restaurant staff in technical unemployment, which will be fully supported by the Romanian Government up to a level of 75% of the average national salary, effective 23 March.
• Reducing the working schedule of the non-critical headquarter staff from 5 to 4 working days/week effective 23 March and sending them in technical unemployment starting 1 April.
• Ongoing negotiations with all landlords in which Sphera stores are located with the purpose of reducing the rent expense. To this end, the Group has already obtained certificates of force majeure issued by the Romanian authorities will be used to either suspend or reduce the rent payments over the following period.
• Ongoing negotiations with all other suppliers of services in order to suspend or significantly reduce the fees for their services rendered to Sphera Group.
• Ongoing discussion with banks for increasing available liquidity to the Group, in the event the current crisis will extend for a longer period.

To read their previous announcement regarding the Covid-19 implications on Sphera’s operations click here.