Sfinks' net profit rises in the first half of 2014

Tuesday, September 2, 2014 - 15:04

In the first half of this year Sfinks Polska Group - owner of the chain of restaurants: Sphinx, Chłopskie Jadło and WOOK - generated consolidated sales revenues of PLN 82.4 m compared to PLN 85.96 m in the same period the year before. In the meantime, the group has increased its consolidated operating profit fourfold - from PLN 608 k in the first half of 2013 to PLN 2.43 m at the end of June this year. Consolidated EBITDA increased in this period in Sfinks by 48% YoY and at the end of the first half of the year it reached PLN 6.88 m. For the first time, Sfinks has generated net profit at the consolidated level which in the first half of the year reached PLN 525 k - an improvement of PLN 2.72 m YoY. Also, at the end of June this year, the company achieved unit net profit of PLN 21 k compared to the loss of PLN 4.01 m in the previous year. Sfinks continues its operations aiming at developing the chain and considers the possibility of expanding its portfolio by new gastronomic brands.

The results show that the direction taken by us gives the expected results. The increase on the operating and net levels is now a permanent trend which can be observed in our operations. It is a result of systematic efforts to improve effectiveness of the restaurant's performance as well as carefully thought-out investment decisions. In keeping with the policy, as part of our investments, we open restaurants which are exclusively in very good locations. As a result, in spite of the same number of restaurants at the end of the previous six-month period as in June the year before, the commercial potential has increased significantly. Thanks to the policy, the area of our restaurants grew by more than 700 m2 and the number of chairs by more than 500. In consequence, the total revenue, including the 12 franchise restaurants excluded from consolidation, increased year by year to PLN 3.2 m and at the end of June reached PLN 84.7 m, remarks Sylwester Cacek, the President of the Management Board of Sfinks Polska.

In the first half of this year, Sfinks Polska opened four new restaurants. The restaurants in Blue City in Warsaw and Janki have been relocated to new, more spacious premises. The second restaurant in Białystok in the Alfa Shopping Centre and a new franchise restaurant in Wesoła in Warsaw have been opened. Already in the second half of the year, in July, another Sfinks restaurant has been launched. It was set up in the largest shopping centre in Silesia - Silesia City Centre in Katowice. Negotiations concerning contracts for new locations are pending. New restaurants have new interior design and the new functional concept was employed there including, among others, play areas for children.

The improvement of profitability of Sfinks Polska was influenced to a large extent by changes in effectiveness introduced in the Sphinx chain, which contributed the most to the revenues of the company. Beside the main menu, there are also three supplementary menus: Sphinx Cafe, Kids Menu and Alcohol Menu. New menus related to different times of a day were also introduced: lunch menu and breakfast menu. Sphinx and Chłopskie Jadło chains also regularly introduce seasonal menus with novelties. All these activities translated into better sales.

This year we have taken a number of measures which have led to growth of the average hourly sale and expanded the time of day when the highest turnover is generated. Introduction of the new selection of coffee had a positive impact on the sales and profitability. The new menu for kids and breakfasts also brought great results. In the morning hours breakfasts constitute 20% of the revenues generated in this time of a day compared to 5% the year before. We have also decided to increase the number of seasonal menus with novelties thanks to which our clients may regularly taste new flavours. This year, Sphinx restaurants will have six of them, and Chłopskie Jadło four. Meals offered as part of such initiatives take up an increasing share of sales, explains Sylwester Cacek.

We have more ideas on how to grow, we seek other places to open Sphinx restaurants and analyze the market with a view to expanding our brand portfolio. By the end of the year, we wish to present a new strategy of the company's development, plans the President of Sfinks Polska.

Tue, 2014-09-02