|
|
|
Fri 13 Jun 2025
Close: 10 948c 
Day's move: -290c (-2.58%)
Volume: 933 283
Trades: 4 079
|
|
|
|
Continuing operations
Revenue for the period lowered by 2% to R65.2 billion (R66.5 billion) with gross profit coming in at R7 billion (R7 billion). Operating profit decreased by 5.7% to R1.35 billion (R1.44 billion) with profit after taxation attributable to owners from continuing operations declining by 9.8% to R768.1 million (R851.2 million). Additionally, headline earnings per share took a 4.7% hit coming in at 433.8c per share (455c per share).
Dividend
In line with the Group's capital allocation priorities and ongoing restructuring, no interim dividend for the 26 weeks ended 28 March 2025 has been declared (2024: 0.0 cents per share). This decision will be reconsidered based on future macro-economic and operating conditions.
Company outlook
Looking ahead, SPAR's focus is on continued margin improvement, operational execution in its core markets, a disciplined approach to capital allocation and delivering the remaining elements of its strategic reset. Encouragingly, post-period trade has shown positive momentum across key regions.
The intended divestments of SPAR Switzerland and AWG are aligned with the SPAR Group's broader portfolio optimisation objectives and represent a meaningful opportunity to unlock value by transitioning the businesses to owners with strong local knowledge and relevant experience in the European retail sector.
The Group is presently engaged in advanced negotiations with entities capable of acquiring these businesses and realising their long-term potential. Regarding AWG, the Group has entered into exclusive discussions with a reputable UK-based business, well-positioned to develop and expand AWG in South West England. In Switzerland, the Group is negotiating with a well-established local investment house, renowned for its extensive market knowledge and strong track record in asset and business management.
SPAR's Southern African operations' growth prospects are grounded in a multifaceted approach that aims to enhance its various retail segments and operational efficiencies. Initiatives include enhancing the category mix, leveraging off the strategic partnerships with Uber Eats and Vida e Caffè, and expanding on-demand services including Build it 2U. Increasing pharmacist training facilities together with establishing distribution centres in the Western Cape and KwaZulu-Natal will support the growth of SPAR Health as we work towards doubling the pharmacy network by 2028. Additionally, increasing private label product penetration in response to evolving consumer needs will also bolster loyalty improvements. Emphasis is placed on improving distribution centre efficiency and developing customer insight platforms such as Spar Mobile and Flex, a communications portal allowing the brand and retailers alike to personalise communication to Rewards users. Through these strategies, SPAR aims to leverage its innovative approaches to drive top-line growth and enhance overall market execution.
BWG Group's growth prospects are centred on enhancing Ireland's leading convenience retail brands by increasing the own brand range and driving everyday value and growing their food services business. The appointment of a Food & Beverage Innovation Director will support the development of key categories, while range and pricing optimisation will focus on new and high-margin categories. Additionally, the BWG Group plans to increase warehouse and logistics capacity, implement cutting- edge store designs and explore acquisition opportunities, all of which contribute to their growth strategy.
The Group expects continued margin improvement in the second half of the financial year ending 26 September 2025 as operational efficiency initiatives mature. While macroeconomic challenges remain, including pressure on consumer wallets and uncertainty from global trade tensions, SPAR remains focused on delivering the remaining key priorities which includes the further SAP roll-out, margin expansion and reducing debt. The focus will be on core market execution, top-line growth, cost discipline and unlocking value through strategic portfolio decisions.
|
| |
| Click here for Results In Brief |
| |
| Click here for Results Analysis |
| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
|
|
