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”)


                                     BUSINESS UPDATE

Headline Summary
   • The trading environment remained highly competitive during the 51-week period ended
      19 September 2025 (“Current Period”), with increased promotional activity across the
      markets in which we operate.
   • Group sales recorded a noticeable uplift in the second half with 2.8% growth year-on-
      year supported by improved execution. In contrast, the first half of the Current Period
      saw a slight decline in Group sales.
   • The balance sheet has been significantly strengthened through the disposal of SPAR
      Holding AG (“SPAR Switzerland”).
Delivering on strategic milestones
SPAR Shareholders are referred to the announcement published on SENS on
Tuesday, 9 September 2025 regarding the disposal of the Group’s entire interest in SPAR
Switzerland. This marked a significant milestone, achieving a clean exit reducing liabilities and
exposures while retaining the potential future gains through an earn-out.

The Group has delivered on its commitment to streamline operations and refocus on its key
markets, Southern Africa and Ireland. With the divestments from Poland and Switzerland
completed, our debt restructured and the sales process of the UK business well advanced,
our leadership is now very focused on Southern Africa operational and margin improvements.

Balance sheet and liquidity
The disposal of SPAR Switzerland has resulted in a significant balance sheet reset. Following
the conclusion of the sale of SPAR Switzerland on 8 September 2025, the Group net debt
reduced by c.30%. All SPAR Switzerland-related borrowings and obligations have been
assumed by the buyer and all cross-guarantees, covenants and contingent liabilities relating
thereto have similarly been fully eliminated. The Group’s funding profile is now streamlined,
with all offshore debt ring-fenced and refinancing risk being reduced.

Headroom on group banking facilities remains substantial at 31 August 2025, particularly in
Southern Africa.

Looking ahead, the Group expects net debt and gearing to continue trending lower, supported
by stronger free cash flow, reduced finance costs and ongoing disciplined capital expenditure
allocation.

Top-line performance
The second half has delivered tangible improvements across key regions, with stronger sales
momentum, despite slowing inflation, on the back of focused promotional campaigns and an
improvement in inland performance.
Build it continued to be impacted by the broader slowdown in construction activity partially
caused by unfavourable weather conditions. Build it sales for the Current Period were also
affected by dropshipment timing, with partial recovery anticipated in the last week of
September 2025.

SPAR Health demonstrated robust turnover performance in Scriptwise sales, supported by
strong sales within the Pharmacy at SPAR network.

The Irish business has demonstrated resilience in the second half. Its scale and well-
established market presence continue to contribute positively to the Group’s overall results.

Overall, the Group expects to end the year with improved sales momentum from continuing
operations relative to the first half.

In Southern Africa, expenses were well managed with opex growth impacted as we continued
our investments in strategic initiatives.

 Wholesale Sales                    H1 2025*                H2 2025#               YTD 2025
 Ireland                               -0,6%                  +2.2%                   +0.8%
 (local currency)
 Groceries and Liquor                  +1.1%                   +2.3%                  +1.7%
 Build it                              +4.1%                   -4.1%                  -0.1%
 SPAR Health                          +13.7%                  +12.1%                 +12.8%
 SA                                    +1.7%                   +1.8%                  +1.7%
*26 weeks ended 28 March 2025
#25 weeks ended 19 September 2025



Retail revenue
In H2 2025, sales momentum in the Groceries and Liquor segment improved, supported by
stronger promotional execution and enhanced availability. Like-for-like sales for Groceries and
Liquor grew 3.5% year-on-year in H2 2025, with Liquor sales delivering solid growth. We
continued to see strong growth in the lower income cluster, with modest growth in the middle
and upper income segments.

 Retail Sales                       H1 2025*               H2 2025^                YTD 2025
 Groceries and Liquor                 +1.9%                   +3.4%                   +2.6%
 Build it                             +5.1%                   +2.6%                   +3.9%
 SPAR Health                          +9.3%                   +9.4%                   +9.4%
*26 weeks ended 28 March 2025
^22 weeks ended 29 August 2025

Capital allocation
With the pathway towards a net debt/EBITDA target of 1.5x in Southern Africa now clearer,
the board of directors of SPAR (“Board”) will be considering options to return capital to
shareholders, including dividends and/or share buybacks, subject to trading conditions and
market outlook. Investment will be directed to opportunities where the Group can achieve
scale and generate returns above the cost of capital.

Outlook
The consumer environment remains under pressure, with volume declines across Fast-
Moving Consumer Goods (FMCG) markets. Nevertheless, the stronger top-line performance
in the second half, stabilising and improving loyalty, a simpler portfolio, a stronger balance
sheet and a continuing disciplined capital framework provide a solid platform for growth and
returns over the medium term.
The Board remains confident in the Group’s ability to deliver sustainable shareholder value.

Shareholders are advised that this business update does not constitute an earnings forecast,
that the financial information provided herein is the responsibility of the Board, and that such
information has neither been reviewed nor reported on by the Group’s external auditors.

The Group’s audited financial results for the 52-week period ended 26 September 2025 will
be released on or about 8 December 2025.


Umhlanga
1 October 2025

Sponsor
One Capital