Spar lifts half-year earnings by 3.7%

Source: Spar

The grocery retailer said diluted headline earnings per share rose to 641.1 cents in the six months ended 31 March from 618.5 cents a year earlier.

Group turnover rose by 5.2% to R67.6bn, supported by its home business as it continued to recover from lockdown curbs and a civil unrest that destroyed its stores last year, while operating profit grew 7.1% to R1.8bn.

Increased marketing initiatives and unrestricted liquor trading, which drove increased footfall to Spar stores, helped lift sales by 4.6% at the group's core wholesale grocery business in Southern Africa. Total wholesale turnover jumped by 7.7%.

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Foreign businesses

In the foreign businesses, while sales grew for some, profits have come under pressure due to increased labour and energy costs, the retailer said.

BWG Foods - the group's Ireland and South West England majority-owned business - delivered turnover growth of 8.3% in euros as sales in foodservices rebounded strongly with the reopening of the hospitality industry.

Spar Switzerland reported a 1.6% decrease in turnover in Swiss francs as the elimination of pandemic-related restrictions significantly reduced the level of neighbourhood store support, while the Polish business saw sales growth of 6.5%.

Spar declared an interim dividend of 175 cents per share, down 37.5% from last year.