Wrap Text
Audited group results for the 52 weeks ended 26 September 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 "Company" or the "Group")
AUDITED GROUP RESULTS FOR THE 52 WEEKS ENDED 26 SEPTEMBER 2025
KEY HIGHLIGHTS:
• The European strategic review has largely been completed resulting in a simplified Group,
providing more clarity on forward earnings and capital allocation
• Group net debt reduced by 40% to R5.4 billion for the 52 weeks ended 26 September 2025
("Current period") compared to R9.1 billion for the 52 weeks ended 27 September 2024
("Prior period"), with net debt leverage at 1.74x at year-end. Southern Africa gearing improved
to 1.75x, reflecting stronger cash generation and disciplined capital expenditure
• Group revenue, on a comparable basis, increased by 1.6%, over the Prior period, with a stronger
second-half trading performance across both geographies. On a constant currency basis, Group
revenue increased by 1.8%
• Despite a muted topline, gross profit from continuing operations was resilient and increased by
3.3% with gross margins improving 20 bps to 10.8%
• Operating profit (excluding extraordinary items, as further detailed below) in Southern Africa, on
a comparable basis, increased 6.8% over the Prior period
• The BWG Group (Ireland) continued to deliver an operating profit margin above 3%
notwithstanding a 2.8% decrease in comparable operating profit
• Cash generated from total operations increased 13.3% to R5.45 billion compared to R4.81
billion in the Prior period
• There is now a clear pathway to shareholder returns over the short to medium term
Shareholders are advised that the statutory results are set out in detail in the consolidated annual
financial statements for the 52 weeks ended 26 September 2025, accessible via the JSE cloudlink and
on the Company's website, as indicated at the end of this announcement. This announcement focuses
on comparable 52-week results from continuing operations, which the Company considers the most
meaningful indicator of underlying performance. The statutory reporting periods comprised 366 days in
the Prior period and 361 days in the Current period, compared to the 364-day periods under the
26/52-week reporting framework.
SALIENT FEATURES – CONTINUING OPERATIONS
52 weeks ended Year-ended 52 weeks ended Year-ended
26 September 26 September 27 September 30 September
2025# 2025 2024 2024
(re-presented)*# (re-presented)*
R million (364 days) (361 days) (364 days) (366 days)
Turnover¹ 132 410 131 458 130 350 130 987
Operating profit (excluding
extraordinary items) 2 782 1 984 2 720 2 658
Earnings per share
(cents) 452.7 425.7 812.4 834.3
Headline earnings per share
(cents) 795.8 768.9 874.0 896.0
Diluted headline earnings per share
(cents) 795.4 768.4 873.7 895.6
1 Turnover represents revenue from the sale of merchandise
* September 2024 was re-presented for discontinued operations (SPAR Switzerland and AWG) in accordance with IFRS 5. SPAR
Poland was already shown as a discontinued operation in the Prior period
# Continuing operations earnings adjusted to allow for comparability after taking into account the impact of the adoption of the
26/52 week reporting framework
SUMMARY SEGMENT ANALYSIS
Continuing operations
Discontinued
Southern Ireland operations
R'million Group % change^ Africa % change^ (EUR m) % change^ (R'm) % change^
Turnover 1 132 409.6 1.6% 97 678.0 2.3% 1 740.5 0.6% 20 697.7 -14.7%
Gross profit 14 239.3 3.3% 9 485.0 4.4% 238.3 2.2% 4 253.2 -14.6%
Gross profit margin (%) 10.8% 0.2% 9.7% 0.2% 13.7% 0.2%#
Operating profit 2 781.6 2.3% 1 650.8 6.8% 56.7 -2.8% 95.6 16.2%
Operating profit margin
(%) 2.1% - 1.7% 0.1% 3.3% -0.1%#
Profit/(loss) before tax 1 341.3 -34.2% 381.6 -64.6% 48.1 0.6%
Financial position
Net Borrowings (R'm) 5 400.2 3 188.4* 109
1 Turnover represents revenue from the sale of merchandise
* Includes R1.18bn for the bridge facility raised to settle Polish term debt
^ Compared to the Prior period
PERFORMANCE OVERVIEW
Continuing operations
Current period figures adjusted to allow for comparability after taking into account the impact of the adoption of the 26/52 week
reporting framework
SPAR Group
The Group delivered a resilient performance in the Current period as trading momentum improved
materially during the 26 weeks ended 26 September 2025 ("FY2025 H2"), supported by better consumer
demand in key categories and stronger execution across operations. Full-year revenue increased by
1.6% to R132.4 billion, with FY2025 H2 growing by 3.5% - a significant improvement on the 26 weeks
ended 28 March 2025 ("FY2025 H1") as grocery and liquor volumes strengthened and retailer
engagement programmes continued to support retailer loyalty which, at the end of October 2025, is
stable at 78.6% (Prior period: 79.2%). Gross profit increased by 3.3% to R14.2 billion, reflecting
disciplined price and promotion management, continued supply chain efficiency and more effective
category management.
Operating expenses remained contained, with logistics and transport costs supported by lower fuel
costs. Operating profit, excluding extraordinary items, increased by 2.3% to R2.8 billion, supported
largely by the improvement in Southern Africa. The Group's operating margin stood at 2.1%, in line with
the Prior period and marginally lower than the 2.2% reported in FY2025 H1.
The Group's financial position strengthened materially over the year. Net debt reduced to R5.4 billion
(Prior period: R9.1 billion), primarily due to the strategic disposals of Switzerland and Poland and
improved working capital management. Group gearing improved to 1.74x (Prior period: 2.41x), providing
additional covenant headroom and reinforcing balance sheet resilience.
Southern Africa remains the core funding anchor for the Group, with gearing improving to 1.75x
(Prior period: 1.87x) and interest cover in South Africa of 4.50x providing a meaningful buffer for macro
volatility and operational investment. Despite elevated financing costs linked to legacy Poland debt
assumed in South Africa - which resulted in non-deductible interest and consequently a higher effective
tax rate – the Southern African liquidity and financial position strengthened meaningfully over the
Current period.
Ireland maintains a stable funding profile, with leverage at 1.71x and interest cover of 11.19x.
Extraordinary Items and Discontinued Operations
During the Current period, the Group substantially concluded its European strategic exits and continues
to make progress on the disposal of AWG, which is an ongoing process. The Group proactively
reassessed the carrying values of certain assets which resulted in impairments of corporate store
goodwill and right-of-use assets in Southern Africa, and impairment charges related to SPAR
Switzerland and AWG.
These actions were deliberate steps to ensure that the carrying values of assets align with cash-
generation potential and market conditions provide a clearer earnings base, a more representative
balance sheet and improved capital structure visibility going forward.
SPAR Southern Africa
Southern Africa delivered an improved performance despite continued pressure on customers'
disposable income. The region benefitted from better execution at wholesale level, enhanced retailer
support programmes and reduced fuel-related logistics costs. These factors contributed to better
operational stability and supported profitability through FY2025 H2.
Southern Africa saw improved growth in revenue from the sale of merchandise in FY2025 H2, up 2.9%
from the Prior period, resulting in full year revenue growth of 2.3%. The Groceries and Liquor business
reported a year-on-year sales increase of 1.9%, with an improved growth trajectory observed in
FY2025 H2, where sales rose by 2.9%. Retail sales were up by 2.4% year-on-year (like-for-like retail
sales: 2.4%). Build it achieved stable revenue performance, reporting a 2.4% year-on-year increase,
with particularly strong performance in the coastal divisions. SPAR Health continued to scale as an
attractive growth adjacency with revenue growth of 13.2% compared to the Prior period. Performance
was driven primarily by Scriptwise and the wholesale channel, supported by the expansion of chronic
medicine programmes.
Operating profit in Southern Africa, excluding extraordinary items, increased by 6.8% year-on-year,
reflecting improved supply chain performance and mix benefits. Promotional discipline, combined with
retailer-level price support, sustained competitive positioning without eroding margins.
Non-financial indicators across the segment remained positive. Retailer loyalty was resilient across
regional clusters at 78.6% (Prior period: 79.2%), on a 12-month rolling basis, to end October 2025. Our
on-demand channels continued to gain momentum, with volumes increasing by 136% year-on-year. To
further empower consumers with more choice in how they shop, the Group entered into a partnership
with Uber Eats in March 2025, which has already shown exceptionally strong uptake.
Pet Storey
During the Current period, Pet Storey (a subsidiary of SPAR Group Limited) concluded the acquisition
of the Pet Masters Group businesses and formally launched the Pet Storey brand in September 2025.
Early indications are that Pet Storey is making good initial progress, and as at end-November 2025, all
12 Pet Masters stores have been converted, with the first independent franchisee launched. The concept
is seeing significant interest with a strong pipeline for conversion.
BWG Group
Ireland excluding South-West England (AWG)
Revenue from the sale of merchandise in Ireland delivered a stable performance in a challenging retail
environment, generating revenue of EUR1.74 billion, representing year-on-year growth of 0.6%.
Performance strengthened in FY2025 H2, particularly in non-tobacco categories supported by
favourable weather and promotional activity, despite consumers remaining under pressure. The food
service business continued to perform strongly and is gaining market share.
Gross margin improved to 13.7% (Prior period: 13.5%), driven by better sales mix while operating profit,
excluding extraordinary items, was modestly below the Prior period due to higher wage and overhead
costs. These cost pressures were partially mitigated by stabilisation in electricity costs, lower fuel spend
and improved operational efficiency through FY2025 H2. The business remains well-positioned in its
market, supported by strong retailer relationships and its market leading brands.
Sri Lanka Joint Venture (JV)
Our JV in Sri Lanka continued to scale despite currency volatility, inflationary pressures and elevated
import costs. Revenue growth was underpinned by ongoing customer acquisition and improving store
network density. Footfall increased by 15% year on year, while items sold grew by 6%, demonstrating
resilience in core grocery categories.
During the Current period, the Group expanded its presence through the addition of 11 new independent
retailers and one corporate store, supporting distribution reach and brand visibility. Management
remains confident in the medium-term opportunity in Sri Lanka, with operating leverage expected to
improve as the network matures and fixed costs are absorbed by higher transaction volumes.
SHAREHOLDER DISTRIBUTION
The Board has resolved not to declare a dividend for the Current period (Prior period: Nil cents per
share) as it believes that it is prudent and in the best interest of shareholders to continue to de-gear the
balance sheet to a more sustainable level. While no distribution has been declared at present, the Group
remains committed to reinstating shareholder returns in the short to medium term, through dividends or
share repurchase programmes. This position will be reassessed regularly, taking into account prevailing
macroeconomic and operational dynamics. The Board's overarching priority is to ensure resources are
deployed in a manner that delivers both sustainable growth and long-term value for shareholders.
OUTLOOK
The Group enters the 2026 financial year with improved financial resilience, streamlined operations and
a clearer set of execution priorities.
Management will continue to implement a risk-controlled SAP rollout designed to safeguard supply
chain stability and franchise continuity, ensuring minimal operational disruption. Margin restoration in
Southern Africa remains a priority, underpinned by targeted retailer programmes, category optimisation
and cost discipline.
Leverage ratios are expected to improve further as disciplined capital allocation and working capital
management remains an ongoing focus. The Group will continue to simplify its capital structure to
reduce interest drag, normalise the tax burden and enhance free cash generation.
The Board remains confident in the Group's ability to deliver sustainable operating performance and
long-term value creation.
ABOUT THIS ANNOUNCEMENT
This results announcement is the responsibility of the directors of the Company. As the information in
this announcement does not provide all of the details, any investment decision should be based on
consideration of the consolidated annual financial statements for the year-ended 26 September 2025
("AFS"), which are accessible via the following JSE cloudlink:
https://senspdf.jse.co.za/documents/2025/JSE/ISSE/SPP/FY25AFS.pdf and on the Company's website
at: https://thespargroup.com/resource-centre/results-announcements/.
This results announcement has not been audited or reviewed by the Group's external auditors. The AFS
were audited by PricewaterhouseCoopers Inc., who expressed an unmodified opinion thereon.
The audit report is included in the AFS which is available on the Company's website at:
https://thespargroup.com/resource-centre/results-announcements/.
By order of the Board
Umhlanga
8 December 2025
Sponsor
One Capital
Corporate Broker
Rand Merchant Bank (a division of FirstRand Bank Limited)
Date: 08-12-2025 07:05:00
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