Sfinks: net profit of over PLN 700 thousand and EBITDA of PLN 4 million in the first quarter of 2014

We are satisfied with last quarter’s results: the positive net result, the gross profit on sales increased by 30%, EBITDA improved by PLN 2.55 million, and improvement of the other operating categories in the 1st quarter show the ever growing efficiency of our business. The increased profitability results from activities on many different levels –ranging from the menus and quality of service, through refined investment policies and structural transformations of the restaurant chains to improved cost efficiency on both individual restaurants and group levels. All this provides us with a more and more efficient business mechanism; which - combined with our strong position on the catering market - makes us feel optimistic about the future, says Sylwester Cacek, President of the Management Board of Sfinks Polska.

In the 1st quarter of 2014, Sfinks completed a further stage of changes in the chains’ structure. Concerned here, among other things, is the transformation of as many as 5 franchised restaurants (where the expenses had been borne by Sfinks Polska) into operator-type outlets. In consequence, as at the end of March, the Sfinks group had 2 own, 91 operator and 16 franchised restaurants. Additionally, some of the franchised restaurants were left out of consolidation as a result of the amendments of the franchise agreements. Thus as at 31 March 5 of the 16 franchised restaurants are subject to consolidation.

In the 1st quarter, the company opened a new Sphinx restaurant in the popular Warsaw shopping center Janki, at the same time leaving its former premises in that gallery. The new premises are much bigger and better located. The restaurant also has a new interior design and decoration. The dining room has been divided into several areas. There are also new facilities for families with children – a large play area and a baby carriage parking area.  After the end of the 1st quarter, in April, also the Sphinx restaurant in the Blue City gallery in Warsaw was moved to the new premises as well and acquired a new design.

This year, further restaurants will be added to the map of Sfinks Polska group’s scope of operations. New Sphinx restaurants will be opened e.g. in the Alfa shopping center in Białystok, at a transport node in Zakręt near Warsaw, and in Warsaw itself in Błękitny Wieżowiec in the Bankowy Square. The company is also negotiating the terms of further operations and franchise projects.