Reporting its annual results for the year ended September 2022, the group presented a sound set of results, given the economic headwinds facing businesses and consumers – not only in South Africa, but in all markets it operates, including Ireland, Switzerland and Poland.

Group turnover was up 6% to R135.6 billion, with operating profits up marginally (1.1%) to R3.43 billion for the period.

However, headline earnings we down, with HEPS 3% lower at 1,160 per share. The group declared a dividend of 400 cents, down 51% from 816 cents in 2021.

According to Spar, the group’s profitability continued to be impacted by the consequences of the pandemic in the first half of this financial year and new geopolitical circumstances, which have seen all regions experiencing fuel and energy cost pressures.

In South Africa, these pressures were further exacerbated by the impact of ongoing electricity load shedding.

Spar Southern Africa contributed 65.0% of turnover for the group and delivered strong growth in wholesale turnover of 8.4% to R88.1 billion.

This increase was assisted by an improved core grocery business performance which generated an increase in sales of 5.3%. Spar increased its promotional calendar to continue to attract cash-strapped consumers.

“This increased promotional activity, continued focus on store disciplines, a better fresh offering, as well as major store upgrades were key initiatives during the reporting period.”

Against the liquor trading restrictions in 2021, Tops at Spar delivered excellent liquor sales growth of 42.6%, rebounding strongly and reaffirming its position as the number one liquor brand in South Africa.

Notably, Spar made excellent progress with its newly developed on-demand shopping platform SPAR2U, which has gone live at 87 stores during the second half of the financial year.

“Feedback from consumers using this new channel has been extremely positive,” it said.

Courtesy of Supermarket & Retailer – read full article here.