Sfinks increases profitability in the first quarter of 2012

Wednesday, May 16, 2012 - 11:44

Sfinks Polska

Sfinks Polska Capital Group, which manages the Sphinx, WOOK, and Chłopskie Jadło restaurant chains, achieved a consolidated sales revenue of PLN 41.01 million in the first quarter of 2012, which means a similar level to the first quarter of the previous year, when a turnover of PLN 41.02 million was recorded. The first three months of 2012 also saw an improvement in the profitability of the restaurant chains. In that period, gross profit on sales rose by more than 60%, i.e. to PLN 3.7 million in comparison with PLN 2.3 million earned in the corresponding period of 2011.

Among the chains managed by Sfinks Polska, the biggest dynamics in the first quarter of 2012 was recorded by WOOK, where catering sales rose by 8.7%. Second place is held by the largest casual dining restaurant chain in Poland, Sphinx, where catering sales turnover from January to March 2012 increased by 1.5% in comparison with the corresponding period of last year. In turn, after the first three months the Chłopskie Jadło chain maintained the dynamics of catering sales revenue at the level of the turnover from the first quarter of 2011.

Apart from the stable sales results and an improvement of the margin obtained by the restaurants in the period from January to March 2012, the Group reported an operating result of PLN (-) 1.5 million and a net result of PLN (-) 3.3 million.

“The previous quarter is characterised by a slight upward trend when it comes to catering sales turnover with a simultaneous improvement of profitability at the business level in the restaurants. At the same time we must remember that the first quarter is normally a harder period of the year in terms of sales for catering than other months, due to, for example, the weather, which does not favour frequent visits to restaurants. Further improvement of profitability and a higher margin result to a great extent from lower production costs. Each quarter, our chains record better and better sales results, what proves a lasting improvement of the business at the level of the current operations of the restaurants. These positive effects were in recent months additionally driven by marketing activities, but this also meant higher expenditures effecting general and administrative expenses. Apart from that, the most significant burden to our results are the financial costs, i.e. liabilities to banks, which consume the positive operating effects obtained by the chains,” says Sylwester Cacek, the President of the Management Board of Sfinks Polska.

In the coming months, Sfinks Polska will, among other things, perform works connected with introducing changes to the Chłopskie Jadło chain. They will concern both the look of the restaurants, and their offer.

“Very soon, our clients will be able to see the Chłopskie Jadło restaurants in the latest look. Apart from new signboards and other graphic elements, the interior of the restaurants will also be refreshed, and a new menu card will be introduced. We want to offer traditional home cuisine in a lighter form, served in a setting that refers to Polish folk themes in a more modern way,” Sylwester Cacek comments.

The company also intends to make certain changes to the offer of the Sphinx chain, which will apply during the coming football championship. At the same time, Sfinks performs investment operations relating to that chain. Currently, 4 openings are being prepared, and are scheduled for this July.

Thu, 2012-07-12