“Sphera Group targets a significant development of KFC in Italy. We currently operate 16 stores, most of them in the northern part of the country, and plan to open another nine stores this year. The coronavirus crisis will adversely impact our current operations and our results for the period. We are revising our projections to the best of our knowledge and we will inform the market in due course, the company said in a statement.
Sphera Groups said it expects a significant negative impact on its existing operations and prospective development in the following months.
KFC stores in Italy account for about 10% of Sphera Group sales and the impact of this crisis in Italy is considered manageable at group level.
“The execution of our development plan in full is at risk. Although we remain committed in delivering our plan, we cannot guarantee at this point its feasibility in terms of supplies required, human resources mobilization and other logistics or regulatory factors,” it said
Sphera Group’s consolidated sales grew 23.8% on the year in 2019, to RON955 million (around EUR201 million). The main contributors were the 15.9% growth in the sales of KFC restaurants in Romania and the 155% growth of KFC restaurants in Italy).
Tatika Investments owns 27.33% in Sphera, Computerland Romania owns 21.43%, Wellkept Group owns 16.34% and Lunic Franchising and Consulting owns 10.99%.