The SPAR Group Limited
(Incorporated in the Republic of South Africa)
Registration number: 1967/001572/06
Share Code: SPP
ISIN: ZAE000058517
(“SPAR” or the “Group”)

________________________________________________________________________

TRADING UPDATE FOR THE 18 WEEKS TO 28 JANUARY 2023
________________________________________________________________________

The Group delivered a robust trading performance with turnover increasing by 7.8% for the
18 weeks ended 28 January 2023 (the “period”).

SPAR Southern Africa
  • Total sales growth of 7.4%
  • Combined core grocery and liquor turnover growth of 8.5%
         o SPAR grocery wholesale business increased sales by a pleasing 9.7%
         o TOPS at SPAR liquor sales increased by 1.6%, primarily impacted by the high
              level of sales experienced in the prior comparative period, due to the pandemic
              related liquor restrictions ceasing in 2021
  • Despite demand for building materials continuing to slow, Build it delivered a credible
     performance, albeit with sales declining by 2.8%
BWG Group (Ireland and South West England)
  • Both markets recorded strong performances with turnover increasing by 8.9% (EUR-
     denominated)
SPAR Switzerland
  • Delivered a decline in turnover of 3.8% (CHF-denominated), exaggerated by the loss
     of retail sales due to the transfer of a group of corporate stores to independent retailers
     during 2022
SPAR Poland
  • Turnover increased by 4.6% (PLN-denominated), despite this business having
     terminated contracts with 58 retailers in July 2022


ZAR turnover growth %

                                                                  18 weeks          18 weeks
                                                                     ended             ended
                                                                28 January        29 January
                                                                      2023              2022
                                                                (% change)        (% change)
 Wholesale grocery business                                              9.7              3.7
 TOPS/Liquor sales                                                       1.6             55.8
 Combined grocery and liquor                                             8.5              9.2
 Build it                                                              (2.8)              1.8
 S Buys - pharmaceutical business                                      18.1               5.5
 Southern Africa                                                         7.4              8.2
 BWG Group (Ireland and South West England)                            11.1               1.9
 Switzerland                                                             4.4              0.0
 Poland                                                                  4.6              4.8
 Group                                                                   7.8              5.8
SPAR SOUTHERN AFRICA

Total sales in Southern Africa increased by 7.4% impacted by soft liquor sales growth during
the period. The business has made good progress with its accelerated growth plan. This
business continues to be impacted by fuel, energy and other inflationary cost pressures but
has benefitted from the installation of solar plants across all its distribution centres.

SPAR wholesale grocery

The SPAR wholesale grocery business reported sales growth of 9.7% against internally
measured price inflation of 9.9%, with a solid performance across both dry and perishable
groceries. This performance is encouraging amid challenging trading conditions.

Driven by the strategic intent to secure SPAR’s supply chain and offer enhanced value to
customers through SPAR’s private label offering, SPAR is pleased to announce that the
Competition Commission has approved the acquisition of the remaining 50% share in SPAR
Encore during the period, effective 1 April 2023. This will enable improved consolidation of the
private label business under the SPAR Encore banner, which continues to be an important
driver of growth.

SPAR’s on demand shopping platform for groceries and liquor, SPAR2U continues to gain
momentum amongst retailers and customers. Having launched its pilot phase during the prior
comparative period, SPAR2U ramped up its availability to 201 sites at the end of the period
and consumer feedback has been extremely positive. An improved offering is now available
through an updated SPAR2U App which has just been launched. The App is more user friendly
and customer centric, enabling SPAR to assist its retailers while enhancing its sales channels.

TOPS at SPAR liquor

TOPS at SPAR liquor business reported growth of 1.6% for the period. Whilst trading appears
muted, the performance is against a high base effect seen in the prior comparative period
(growth of 55.8%) which benefitted from the COVID-19 liquor trading restrictions being lifted
in September 2021. Comparing the last month of the period, January 2023 against January
2022, liquor turnover increased by 10.0%.

SPAR Pharmaceutical

The pharmaceutical business, S Buys Pharmacy at SPAR, delivered strong sales
performances by both Pharmacy at SPAR and Scriptwise (specialised pharmacy), delivering
18.1% turnover growth for the period.

Build it

The building sector remains under pressure, which has been exacerbated further by electricity
loadshedding and rising inflation. Build it’s decline in turnover of 2.8% should be viewed as a
credible performance against this backdrop. Build it continues to hold its number one position
for building materials in Southern Africa.


BWG GROUP (IRELAND AND SOUTH WEST ENGLAND)

This group increased turnover by 8.9% for the period in EUR terms, and 11.1% in ZAR terms.
This is an excellent trading performance, boosted by strong performances in Ireland across all
retail brands and a full recovery in the hospitality sector which was restricted in December
2021 due to a new variant of COVID-19. The Appleby Westward group in South West England
recorded solid growth by both the wholesale business and corporate retail division. Operating
costs continue to be impacted by higher distribution and labour costs across both markets.
SPAR SWITZERLAND

Turnover for the Swiss business declined by 3.8% in CHF terms (increased by 4.4% in ZAR
terms) against the prior comparative period. The decline in turnover was exaggerated by the
transfer of a group of corporate stores to independent retailers over the course of 2022 and
subsequent loss of retail turnover from these stores in the period versus the prior comparative
period. Against the four-month comparable period in 2020, before the COVID-19 pandemic,
turnover increased 11.5% demonstrating this business has shown solid growth over the past
three years. Swiss consumers continue to seek cheaper alternatives in neighboring countries,
coupled with the Swiss supporting online shopping in these countries. However, with higher
inflationary pressures across the border and increased fuel prices, the price benefit of
shopping abroad has been eroded. During the period, energy cost pressures persisted in this
region.


SPAR POLAND

SPAR Poland delivered turnover growth of 4.6% in both PLN and ZAR terms, compared to the
prior comparative period. This is a meaningful performance as the prior comparative period
includes 58 retailers whose contracts were terminated in July 2022.

Management is focused on new business development, improved corporate store operational
performance, and growing independent retailer loyalty rates through an increased product
range offering at the distribution centre in the south of the country. The expanded range
includes over 2000 additional product lines. SPAR Poland has also reported an improvement
in the inbound service levels against the prior comparative period. This is largely due to
improved supplier relationships.

Consumers continue to experience double-digit food inflation and are extremely price
conscious. Consequently, SPAR Poland has made investments in price to improve
competitiveness against wholesale peers, thereby increasing retailer loyalty. This region
continues to experience significant increases in food, energy and fuel prices.


INTERIM RESULTS

The financial results for the six months ending 31 March 2023 will be published on SENS on
or about Wednesday, 14 June 2023.

Shareholders are advised that the financial information contained in this announcement is the
responsibility of the directors and has not been audited, reviewed or reported on by the Group’s
auditors.


By order of the Board
Pinetown

14 February 2023

Sponsor: One Capital

Corporate Broker: Rand Merchant Bank, a division of FirstRand Bank Ltd