Sfinks's net profit amounts to PLN 8.02 million after 11 months of 2015

“The 2015 year was a breakthrough for us, it brought many important changes having material effect on Sfinks's development in the coming years. Thanks to the refinancing credit we have obtained from the Bank Ochrony Środowiska, we could pay off our credit at PKO BP and we will settle our liabilities with ING this month. That change and the repayment of credit in installments to 2022 are enough to provide us with the stable resources to finance the chain development. In 2015 we put a lot of effort in opening a dozen new restaurants without any external financing. Repeating that in the coming years might not have been possible. Meanwhile, thanks to the capital increase through the issue of stocks with the value of PLN 12.96 million which constituted the condition of concluding the credit agreement with BOŚ, the company received additional funds for development. As a result, based on the new strategy submitted in November 2015, by 2020 we will be able to open nearly 100 restaurants financed from our own funds. Only in 2016 we plan to open 16 of them,” says Sylwester Cacek, the President of the Management Board of Sfinks Polska S.A.

At the end of 2015 Sfinks managed 117 restaurants. In the past year 14 new Sphinx restaurants and one Chłopskie Jadło restaurant were created. They were opened in prestigious locations, such as Błękitny Wieżowiec in Warsaw or Rynek Główny in Cracow, but also in strictly tourist towns like Jastarnia or Malbork. All the restaurants are created with the intention of achieving the ROI of at least 30%. At the same time the company continues to take actions aimed at increasing sales and profitability of the chain, including introducing new menu items, marketing and promotional campaigns, interior design changes of the existing restaurants or the permanent supervision over the quality of dishes and customer service.

“According to that assumption the chain development should translate into a systematic increase of our financial results. Looking at our revenues achieved after 12 months of 2015, we have no concerns about meeting the forecasts. Regardless of the uncertainty present in the market and related to the changes planned by the government, we intend to comply with the assumptions of our strategy and achieve in 2016 a much better result than we did last year. All that shows that Sfinks successfully completed its restructuring period, it is a predictably developing company, standing on a sound basis and the increase in the scale of operations will only strengthen our position in the market,” says Sylwester Cacek.

Sfinks forecasts that in 2016 it will increase its standalone sales revenues to PLN 219.2 million, its net profit to PLN 15 million and its EBITDA result to PLN 27.2 million. The company's equities at the end of the year are to increase to PLN 23.1 million and the debt to EBITDA ratio is to achieve a safe level of 3. Sfinks's strategy also assumes that by 2020 the company will generate revenues in the amount of PLN 367.6 million with the standalone net profit of PLN 24.9 million and EBITDA at PLN 54.2 million. The company is supposed to have equities in the amount of PLN 105 million and the debt-to-EBITDA ratio of 0.5. At the same time the strategy does not exclude any additional directions in which Sfinks might develop apart from the organic development of the Sphinx chain, such as acquisitions or expansion abroad. These activities are not, however, included in the forecasts. The company predicts that in the case of any interesting investment opportunities it might gain additional PLN 191 million for investments by 2020, increasing its debt while maintaining the safe debt-to-EBITDA ratio at 3.5.

 

“We have been thinking about acquisitions and entering effectively markets outside of Poland for quite some time. But in this case rushing is not advisable. When we are fully prepared, we will begin developing our chain of restaurants in other countries through master-franchise. As you can see by the results, we are getting closer to that point,” says Sylwester Cacek.

 

After 11 months of 2015 the Sfinks Polska group achieved the consolidated revenues from sales at PLN 163.49 million, the profit from operations at PLN 9.80 million and the net profit at PLN 7.29 million. In that period, the consolidated EBITDA result reached the value of PLN 17.78 million.