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Trading statement for the 26 weeks ended 28 March 2025
THE SPAR GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1967/001572/06)
JSE and A2X share code: SPP
ISIN: ZAE000058517
("SPAR" or the "Group" or the "Company")
TRADING STATEMENT FOR THE 26 WEEKS ENDED 28 MARCH 2025
SPAR is in the process of finalising its interim results for the 26 weeks ended 28 March 2025
("Results"). In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements
("Listings Requirements"), issuers are required to publish a trading statement as soon as
they are satisfied that a reasonable degree of certainty exists that the financial results for the
period to be reported on will differ by at least 20% from the financial results for the previous
corresponding period.
Furthermore, as reported in the announcement published by the Company on SENS on
13 May 2025, the board of directors of SPAR ("Board") has approved an amendment to the
Group's financial reporting framework and adopted a 52/26 week reporting period to align
with the retail industry best practice.
Re-classification of SPAR Switzerland and Appleby Westward Group ("AWG") as
Discontinued Operations
SPAR shareholders ("Shareholders") are referred to our 2024 annual results presentation
on 28 November 2024 (a copy of which is available on the Company's website at:
https://thespargroup.com/pdf/FY24_Results_Presentation.pdf) in which the Group
announced its intention to conduct a strategic review of its European operations.
Shareholders are advised that, following this strategic review, the Group is exploring
divestment options for SPAR Switzerland and AWG.
In respect of AWG, the Group is in exclusive negotiations with an established UK-based
business, well positioned to develop and grow AWG in South West England. In Switzerland,
the Group has been engaging established parties with extensive business interests in the
region and experience in European food retail and distribution. The Group approach has
been to engage parties whose interests align with the growth ambitions of the local
management teams and retailer partners, and will ensure continuity for employees, suppliers
and customers.
In light of the above, SPAR Switzerland and AWG meet the criteria for classification as assets
'held for sale' under International Financial Reporting Standard ("IFRS") 5 – Non-current
assets held for sale and discontinued operations and have been classified as discontinued
operations in the Group's Results.
The Company will continue to keep Shareholders informed of any material developments
arising from the above discussions, as and when appropriate, in accordance with the
applicable laws and regulatory requirements.
Earnings guidance from continuing operations
In respect of the Group's interim results from continuing operations, Shareholders are
advised that the Group expects to report earnings per share ("EPS") and headline earnings
per share ("HEPS") for the current reporting period (including the results of
SPAR Southern Africa and SPAR Ireland but excluding the results of SPAR Switzerland and
AWG, which are reflected as discontinued operations) within the ranges provided in the table
below:
26 weeks 26 weeks Interim period Interim period
ended ended ended ended
Continuing 28 March 2025 28 March 2025 31 March 2024* 31 March 2024
operations expected expected re-presented as reported
range range (cents per (cents per
(%) (cents per share) share)
share)
HEPS -10.0 to 0.0 409.5 to 455.0 455.0 465.0
Diluted HEPS -10.0 to 0.0 409.4 to 454.9 454.9 464.8
EPS -15.0 to -5.0 375.7 to 419.9 442.0 451.7
Diluted EPS -15.0 to -5.0 375.6 to 419.8 441.9 451.6
Comparable^ earnings from continuing operations
HEPS -5.0 to 5.0 429.3 to 474.5 451.9 -
Diluted HEPS -5.0 to 5.0 429.2 to 474.4 451.8 -
EPS -10.0 to 0.0 395.0 to 438.9 438.9 -
Diluted EPS -10.0 to 0.0 394.8 to 438.7 438.7 -
* March 2024 was re-presented for discontinued operations (SPAR Switzerland and AWG) in accordance with IFRS 5.
^ Continuing operations earnings adjusted to allow for comparability after taking into account the impact of the
adoption of the 52/26 weeks reporting framework.
The following factors impacted earnings during the current reporting period:
1. Operating performance from continuing operations
The Southern Africa groceries and liquor segment delivered modest top-line growth on a
comparable basis, while operating profit maintained solid momentum. The KwaZulu-
Natal distribution centre continued its positive trajectory, reflecting improved profitability.
This performance, together with continued focus on cost discipline, translated into
modest operating margin expansion on a comparable basis.
Ireland delivered a resilient performance in a challenging trading environment, supported
by improved gross profit and operating margins in local currency terms, as well as
reduced interest expenses driven by lower gearing. These gains were partially offset by
adverse foreign currency translation effects on consolidation.
2. Impairments and discontinued operations
Total impairments of approximately R4.2 billion were recognised, including R3.0 billion in
Switzerland and R1.2 billion in AWG. The impairments take into account the fair value of
the disposal groups less costs to sell. Additionally, the divestment of the Polish business,
which was concluded in January 2025, resulted in a loss on disposal of R531 million in
the interim period. This loss has been recognised in relation to the sale of the Polish
operation and takes into account the satisfaction of certain suspensive conditions that
were pending at the reporting date but have since been fulfilled, enabling completion of
the disposal. The fulfilment of these conditions resulted in the final adjustments to the
disposal proceeds and associated costs and there have been no further cash outflows
since the disposal became wholly unconditional and was implemented on 31 January
2025.
3. Balance sheet and liquidity
The Group made substantial progress in strengthening the balance sheet, with the
successful refinancing of its South African and Swiss facilities, improving liquidity and
reducing funding costs. The Group anticipates that the successful completion of the
aforementioned divestments will materially deleverage and strengthen the balance sheet
further.
Earnings guidance from total operations
Shareholders are advised that for total earnings including discontinued operations, EPS and
HEPS for the current reporting period are expected to fall within the ranges provided in the
table below:
Total – 26 weeks ended 26 weeks ended Interim period
continuing and 28 March 2025 28 March 2025 ended
discontinued expected range expected range 31 March 2024
operations (%) (cents per share) as reported
(cents per share)
HEPS -34.0 to -24.0 276.1 to 317.9 418.3
Diluted HEPS -34.0 to -24.0 275.9 to 317.8 418.1
EPS _* -2 100.5 to -2 321.7 29.5
Diluted EPS _* -2 097.9 to -2 318.7 29.5
* >1 000%
Results presentation
The Results are expected to be published on SENS by 07h30am (SAST) on Wednesday,
4 June 2025 and will be available on SPAR's corporate website shortly thereafter:
https://thespargroup.com/. The Results webcast presentation, hosted by
SPAR management, will follow at 09h30am (SAST) on the same day. The webcast will be
accessible via the following link: https://www.corpcam.com/Spar04062025.
Shareholders are advised that the financial information contained in this announcement is
presented in accordance with the Listings Requirements and has not been audited, reviewed
or reported on by the Group's auditors.
By order of the Board
Umhlanga
29 May 2025
Sponsor
One Capital
Corporate Broker
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 29-05-2025 10:10:00
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