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SALIENT FEATURES Unaudited Unaudited SPAR Switzerland reported a decrease in turnover of 1.6% in CHF-
six months six months denominated currency and has seen a decline in trading against the
ended ended extraordinary levels of growth in the prior period. As expected, the elimination
31 March 31 March %
Rmillion 2022 2021 change of pandemic-related restrictions in the current period significantly reduced
Turnover1 67 605.2 64 240.5 5.2 the level of neighbourhood store support which the business benefitted from
THE SPAR GROUP LTD Operating profit
Earnings per share
Headline earnings per share
(cents)
(cents)
1 832.0
605.5
642.6
1 710.2
616.4
620.7
7.1
(1.8)
3.5
during the height of COVID-19 restrictions. Increased electricity and fuel costs
impacted overall profitability for this business. The SSAG petro-convenience
stores have contributed positively for the full six months against only one
Diluted headline earnings
month in the prior period. The TopCC cash and carry business has returned
Unaudited interim results for the per share
Dividend per share2
(cents)
(cents)
641.1
175.0
618.5
280.0
3.7
(37.5) to growth, supported by the reopening of restaurants and hospitality. On a net
six months ended 31 March 2022 Net asset value per share (cents) 4 373.9 3 961.1 10.4 basis, SPAR Switzerland closed five stores, taking the total store network to
381 stores at the end of the period.
and cash dividend declaration 1
2
Turnover represents revenue from the sale of merchandise.
On 16 February 2022, the board announced a change in the dividend policy for a period of
two years to fund inter alia the strategic SAP implementation.
SPAR Poland reported turnover growth of 6.5% in PLN-denominated terms.
+5.2% +7.1% The further strategic closure of selected loss-making stores during the period
impacted sales growth. Retailer loyalty for the independent retailers in the
Group Operating SUMMARY SEGMENT ANALYSIS south of the country improved marginally to 31% at the end of March 2022
turnover profit and further work to improve this level is in progress, which will drive growth for
The SPAR
Southern Switzer- Group this business. The store closures resulted in a reduction in the store network of
Rmillion Africa Ireland land Poland Ltd 19 stores to 208 stores at period end.
+3.7% 175.0 cents Profit/(loss) OUTLOOK
Diluted headline Interim dividend Turnover 44 621.4 14 853.3 6 864.7 1 265.8 67 605.2 DECLARATION OF ORDINARY DIVIDEND
In South Africa, inflationary pressures will continue to persist, with the consumer
earnings per share per share Gross profit 4 420.6 2 096.8 1 279.0 230.4 8 026.8 expected to remain under pressure. SPAR has increased its promotional Notice is hereby given that an interim gross cash dividend of 175.0 cents
Operating profit/(loss) 1 420.0 390.0 187.9 (165.9) 1 832.0 (2021: 280.0 cents) per share has been declared by the board in respect of
calendar for the period ahead to continue to attract cash-strapped consumers
Profit/(loss) before the six months ended 31 March 2022. The dividend has been declared out
+10.4% +55 taxation 1 355.8 314.7 158.4 (187.5) 1 641.4 and is focused on providing a renewed SPAR-brand fresh offering, including
fresh produce, butchery, bakery and home meal replacement. There is great
of income reserves.
Net asset value Net new Financial position
enthusiasm from our independent retailers to implement SPAR’s new online The salient dates for the payment of the interim dividend are detailed below:
Total assets 26 601.4 13 862.1 10 204.2 2 053.7 52 721.4
per share stores Total liabilities 21 603.2 11 433.5 8 374.7 2 892.8 44 304.2 shopping platform, SPAR2U. Our online platform is receiving positive reviews Declaration date Wednesday, 8 June 2022
and a large number of stores are preparing to launch online within their Last day for shares to trade cum-dividend Tuesday, 28 June 2022
communities in the coming months. Liquor sales should continue to rebound in Shares to commence trading ex-dividend Wednesday, 29 June 2022
the absence of further pandemic-related liquor trading restrictions. Post period Record date Friday, 1 July 2022
PERFORMANCE OVERVIEW Payment of dividend Monday, 4 July 2022
end, KwaZulu-Natal experienced devastating floods. The damage to our
The group delivered robust turnover growth, increasing turnover by 5.2% SPAR stores was fortunately minimal and most of these retailers were trading Shareholders will not be permitted to dematerialise or rematerialise their shares
to R67.6 billion. Group operating profit increased by 7.1% to R1.8 billion. again within 24 hours. Our Build it business has been negatively impacted by between Wednesday, 29 June 2022 and Friday, 1 July 2022, both days inclusive.
SPAR Southern Africa delivered a strong performance. Profits in the foreign heavy rainfall, but remains well placed to assist with rebuilds, given the level of
In terms of South African taxation legislation effective from 1 April 2012, the
businesses have come under pressure due to increased labour and energy damage experienced within the region. following additional information is disclosed:
costs. Whilst loss making, the Polish business is showing improvement.
Diluted headline earnings per share increased by 3.7% to 641.1 cents. The In the European regions, with the pandemic-related regulations set aside, • The South African local dividend tax rate is 20%;
management teams are optimistic ahead of the summer months, which are • The net local dividend amount is 140.0 cents per share for shareholders
board has declared an interim dividend of 175.0 cents per share, in line with
traditionally good for retail trading, and hospitality sector growth. BWG Group liable to pay tax on dividends and 175.0 cents per share for shareholders
the temporarily adjusted dividend policy. exempt from such dividend tax;
has several focus areas including the EUROSPAR supermarket strategy.
• The issued share capital of The SPAR Group Limited is 192 602 355
SPAR South Africa reported solid growth, with wholesale turnover Growth of the existing business remains the key area of focus for the Swiss
ordinary shares; and
increasing by 7.7% to R43.8 billion. The core SPAR wholesale grocery team, along with converting the remaining SSAG stores to the SPAR Express
• The SPAR Group Limited’s tax reference number is 9285/168/20/0.
business reported a meaningful recovery in sales growth of 4.6%, assisted brand and strategically transferring these stores to independent retailers. The
by increased marketing initiatives at retail, and unrestricted liquor trading, next six months will be a crucial period for the Polish business and management By order of the board
which drove increased footfall to SPAR stores. Internally measured wholesale are heavily focused on retailer loyalty growth and new business development.
Kevin O’Brien Pinetown
price inflation for the period was 5.0%. Core business trading continued The partnership with Avia fuel courts continues to grow in line with the plan
Company Secretary 8 June 2022
to be impacted by the stores which were closed due to the civil unrest in for the SPAR brand to gain traction in petro-convenience in Switzerland and
July 2021. At the end of the period, 13 SPAR format stores and nine TOPS Poland going forward. ABOUT THIS ANNOUNCEMENT
at SPAR stores remained closed. Following the lifting of the COVID-19 This short-form announcement is the responsibility of the directors and is only
The group continues to benefit from its diversity in terms of geographies and
nationwide liquor trading bans in September 2021, TOPS at SPAR made a summary of the information in the full announcement and does not contain
business segments and remains resilient in the face of ongoing challenges.
a strong recovery, increasing turnover by 41.6% for the period. On a full or complete details.
Considering the inflationary pressures, greater collaboration, cost reduction
combined basis, wholesale grocery and liquor turnover increased by 8.5% and driving efficiencies across all our businesses are key areas of focus for the The full announcement can be found on SENS at
for the period. While Build it experienced a slowdown against the backdrop second half of the financial year. We remain well positioned to offer exceptional https://senspdf.jse.co.za/documents/2022/JSE/ISSE/SPP/Interim_22.pdf.
of extraordinary levels of home improvement seen during the pandemic, value to consumers through our SPAR house brand offerings. The return to more The full announcement is also available on the company’s website at
this business continues to deliver growth with turnover increasing by 1.4%. normal activity, as COVID-19 restrictions are lifted is widely welcomed. SPAR https://thespargroup.com/ and copies may also be requested from the
Build it trading was hampered by heavy rainfall in various regions across the is a people business - freedom of movement and socialisation are essential company’s registered office and at the office of the JSE sponsor at no charge,
country, as well as the impact of seven stores which have remained closed for relationship building across our communities, and with new and existing during office hours. Any investment decision by investors and/or shareholders
following the civil unrest. The total Southern African store network increased stakeholders. The SPAR brand is embedded within the heart of its communities. in relation to the company’s shares should be based on the full announcement.
We will continue to provide an excellent service to our independent retailers and The information contained in this short-form announcement has neither been
to 2 493 stores, with 53 net new stores across all formats.
audited nor reviewed by the company’s external auditors.
to make a difference within the communities we serve.
OUR PURPOSE BWG Group (Ireland and South West England) delivered excellent turnover
growth of 8.3% in EUR-denominated terms. As consumers started to switch Graham O’Connor Brett Botten www.thespargroup.com
to inspire people to spend to out-of-home channels with the easing of COVID-19 restrictions, the
retail brands have managed to deliver an overall robust performance. Sales
Chairman Chief Executive Officer
do and be more in foodservices rebounded strongly with the reopening of the hospitality CORPORATE INFORMATION
GREYMATTERFINCH # 15864
Directors: GO O’Connor** (Chairman), BW Botten (Chief Executive Officer), JA Canny*, MW Godfrey, LM Koyana*, M Mashologu*, P Mnganga*, ST Naran*, AG Waller* (Lead independent)
industry. Appleby Westward in South West England has continued to benefit (* Independent non-executive) (** Non-executive)
from the growth of corporate stores. Despite many cost pressures the Company Secretary: KJ O’Brien THE SPAR GROUP LTD: (SPAR) or (the company) or (the group) Registration number: 1967/001572/06 ISIN: ZAE000058517
business has performed strongly and has again reported a solid profit result. JSE share code: SPP Registered office: 22 Chancery Lane, PO Box 1589, Pinetown, 3600
Transfer secretaries: JSE Investor Services (Pty) Ltd, PO Box 4844, Johannesburg, 2000
During the period, there were a significant number of new store openings, Auditors: PricewaterhouseCoopers Inc., Waterfall City Heliport, 4 Lisbon Ln, Jukskei View, Midrand, 2090 Sponsor: One Capital, 17 Fricker Road, Illovo, 2196
increasing the store portfolio for the combined business to 1 432 stores Bankers and corporate brokers: Rand Merchant Bank, a division of FirstRand Bank Ltd, PO Box 4130, The Square, Umhlanga Rocks, 4021
(26 net new stores). Attorneys: Garlicke & Bousfield, PO Box 1219, Umhlanga Rocks, 4320
