Sphinx Polska Financial results for 2021

Photo: Sphinx Polish press materials

Catering sales at Sphinx Polska’s chains totaled 103.39 million PLN in 2021, slightly higher than in 2020, despite fewer restaurants and longer locking periods.

The closing of several months of gastronomy has affected the annual results of the Sphinx – at the end of 2021, the single sales revenue of the Sphinx Polska amounted to 60.68 million PLN, compared to 71.27 million PLN a year ago. The change in the level of income was also influenced by the fact that the network has become more franchising. At the same time, last year the company showed a net loss of -19.57 million PLN compared to -61.87 million PLN at the end of 2020 (-19.25 million PLN and -53.52 million PLN, respectively, after eliminating the impact of MHBS16). . The second half of 2021 will include sales in the network, the restoration of new buildings and the launch of additional sources of income, as well as the implementation of other elements of the stabilization plan.

– According to our results for 2021, the first half of the year was affected by the fact that restaurants are practically non-existent, which led to a very deep violation of our revenues. In addition, this resulted in the need to create impairment losses on property, plant and equipment and receivables, which were reflected in the annual net result. However, it is gratifying that in the second half of 2021, our network grew faster and more efficiently after the first blockade in 2020 in terms of revenue. As a result, revenues from food services increased by 0.3%, a little more than a year. in the past, despite more days with a small number of restaurants and a ban on serving guests in buildings. On the other hand, the EBITDA result reached a value of -9.04 million PLN in 2021, after eliminating the effects of IFRS16. at a level similar to 2020, where the result is -8.60 million PLN. he says Sylwester CacekPresident of the Sphinx Polish Board.

Due to restrictions and the inability to receive guests in restaurants, the Sphinx has intensified its activities in the delivery model, as well as in the segment of ready meals. It has expanded the portfolio of virtual gastronomic brands and their range (delivery from 66 stationary outlets by the end of 2021) and SPHINX ready meals have gone to other food chains, including Biedronka and Jokr e-shops. The company intends to continue to develop activities in these areas as important components of the business. After the industry froze at the end of May 2021, after 7 months of uninterrupted closure, the company resumed sales within the fixed line network and returned to frozen investment. New buildings have been opened on the site of buildings that did not return to work after closing. A total of nine restaurants were opened last year, including. Near Białystok, Bydgoszcz, Krosno, Krakow, Lublin or Warsaw, mostly in the franchise model.

In 2021, the Sphinx also worked on other projects to ensure financial stability for the group – a simplified restructuring procedure (UPR) and a loan from the Industrial Development Agency under a program for companies affected by the pandemic. As early as the spring of 2021, the court upheld the agreement reached by the creditors, although only a year later, in April 2022, the decision was final and could be enforced. The entry into force of the agreement in 2022 will have a significant positive impact on results and capital. partially repaid (approximately 25.7 million PLN plus interest), and some will be converted into shares (approximately 5.7 million PLN).

The second important element that will affect the Sphinx’s results in 2021 and will be in the coming period is the loan provided by the Industrial Development Agency in the first half of last year in the amount of more than 14 million PLN. The funds were given to the Sphinx Polska to cover part of the liquidity gap after the pandemic, but the main thing is that in April 2022, the Agency agreed to extend the loan repayment date until 2030, although the initial period was five months.

“It’s been a very difficult year, and we’ve closed 2021 with a slightly smaller network, but we believe the foundations of our business are strong. Although in 2022 we face new challenges arising from the macroeconomic and geopolitical situation and a lot of work, we are optimistic about the future. The years of the pandemic have shown that the Sphinx, in addition to restaurants or strong brands, is an extremely important but difficult to measure asset – the so-called goodwill. They consist of the confidence and willingness of contractors, partners and employees to work together, even in the face of growing challenges. Without their support, we would not be able to contract with our creditors, maintain the franchise and maintain the network, so I thank them very much. – says the president of the company. – We have entered another year with this valuable investment. At Sphinx Polska SA, the parent company, we will focus on developing our franchise network, especially under the most powerful brand, SPHINX, in order to make the best use of our know-how and market opportunities. An aperitif loyalty program with more than 400,000 loyal supporters. restaurant guests. On the other hand, activities related to the development of other areas will be carried out mostly by subsidiaries or affiliates, on the basis of obtaining separate funding for these companies. – he adds Sylwester Cacek.

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Revenues from food and beverages are the revenues of all businesses operating under brands belonging to the Sphinx Polska Group, with the exception of the Piwiarnia Warki network.

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