Sphera Franchise Group (SFG) investor relations material

Executive summary

• Consolidated restaurant sales reached RON 754.5 million in H1 2026, up 1.2% year-over-year, despite a challenging consumer environment in Romania due to high inflation, fiscal tightening, and political uncertainty.

• Net profit for H1 2026 was RON 13.6 million, a 7.8% increase year-over-year, with normalized net profit at RON 13.7 million, impacted by lower same-store sales and unfavorable exchange rates.

• The Group continued network expansion, opening new KFC, Taco Bell, and Cioccolatitaliani units, and added the wagamama franchise to its portfolio.

• Q2 2026 restaurant sales declined 1.6% year-over-year to RON 376.6 million, reflecting cautious consumer sentiment and political uncertainty.

• Seven underperforming Pizza Hut restaurants were closed to optimize profitability.

Financial highlights

• Restaurant operating profit for H1 2026 was RON 57.9 million, up 4% year-over-year, with margin improvement to 7%.

• Normalized EBITDA for H1 2026 was RON 52.5 million, down 0.6% year-over-year, with a margin of 7%.

• Restaurant expenses in H1 2026 increased 0.9% year-over-year to RON 698.1 million, improving the expense ratio by 0.3pp to 92.5%.

• Food and material costs in H1 2026 decreased 1.7% year-over-year to RON 233.3 million, improving as a share of sales to 30.9%.

• Q2 2026 profit before tax increased 49.3% year-over-year to RON 11.4 million.

Outlook and guidance

• No updated guidance due to market complexity; management is evaluating multiple scenarios and will communicate any changes as required.

• Inflation in Romania remained above 10% in H1 2026, exceeding budget assumptions, with fiscal measures and political uncertainty continuing to pressure disposable income and sentiment.

• Management is focused on cost control, operational flexibility, and scenario planning to adapt to evolving market conditions.

• Optimistic trends noted at the end of Q2 and into July/August, but uncertainty remains.