{"id":776550,"date":"2024-06-12T08:50:15","date_gmt":"2024-06-12T06:50:15","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=776550"},"modified":"2024-06-12T08:50:19","modified_gmt":"2024-06-12T06:50:19","slug":"spar-takes-a-big-hit","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/776550\/spar-takes-a-big-hit\/","title":{"rendered":"SPAR takes a big hit"},"content":{"rendered":"\n

SPAR’s latest financial results for the six months ended 31 March 2024 came in below expectations. <\/p>\n\n\n\n

SPAR’s total turnover, including Southern Africa, Ireland, South West England and Switzerland, increased by 7.9% to R77.2 billion.<\/p>\n\n\n\n

However, profits were flat, with headline earnings declining 7.6% for the period.<\/p>\n\n\n\n

“All regions have been dealing with inflationary cost pressures and prolonged higher interest rates placing pressure on consumers and business alike,” said SPAR.<\/p>\n\n\n\n

“This, coupled with the hangover of system issues in South Africa, has impacted the results for the first six months of the year.”<\/p>\n\n\n\n

Although the group delivered an operating profit of R1.6 billion\u2014up 0.2%\u2014net finance costs negatively impacted profit before tax, which declined by 11.2% to R1.14 billion.<\/p>\n\n\n\n

Thus, diluted headline earnings per share declined by 7.6% to 464.8 cents.<\/p>\n\n\n\n

With the challenges facing the group, it has not declared an interim dividend for the period. <\/p>\n\n\n

\n
\"\"<\/a>
Excludes SPAR Poland, which is now a discontinued<\/figcaption><\/figure><\/div>\n\n\n

SPAR Southern Africa saw a total increase in wholesale turnover of 4.8% for all business units.<\/p>\n\n\n\n

The wholesale grocery business reported growth of 4.0% against internally measured wholesale price inflation of 7.0%. <\/p>\n\n\n\n

Turnover from SPAR’s private label increased by 7.6%. SPAR’s on-demand shopping app, SPAR2U, was available on 420 sites at the end of March 2024, up from 356 sites in September 2023. <\/p>\n\n\n\n

Online volumes thus increased by 463% against the prior reporting period. <\/p>\n\n\n\n

TOPS at SPAR saw wholesale turnover increase by 12.8% after being boosted by the timing of the Easter long weekend in March. <\/p>\n\n\n\n

When combined, wholesale grocery and liquor turnover increased by 5.2% for the period.<\/p>\n\n\n\n

Building materials business, Build it, daw wholesale sales performance declined by 0.4%, reflecting a weak construction industry. <\/p>\n\n\n\n

\n
Tough times for home builders in South Africa<\/a><\/blockquote>