Try our mobile app
SALIENT FEATURES SUMMARY SEGMENT ANALYSIS
Year ended Year ended The SPAR
30 Sep 30 Sep % Southern Switzer- Group
Rmillion 2022 2021 change Rmillion Africa Ireland land Poland Ltd
THE SPAR GROUP LTD Turnover¹
Operating profit
135 609.1
3 428.7
127 940.5
3 392.6
6.0
1.1
Profit/(loss)
Turnover 88 090.9 31 295.6 13 834.7 2 387.9 135 609.1
Earnings per share (cents) 1 118.2 1 176.3 (4.9) Gross profit 8 829.4 4 485.1 2 547.9 436.6 16 299.0
Headline earnings per share (cents) 1 160.5 1 196.2 (3.0) Operating profit/(loss) 2 451.7 970.5 409.5 (403.0) 3 428.7
SUMMARISED CONSOLIDATED Diluted headline earnings per Profit/(loss) before taxation 2 335.6 810.4 351.1 (455.4) 3 041.7
share (cents) 1 159.1 1 193.7 (2.9)
GROUP RESULTS Dividend per share
Net asset value per share
(cents)
(cents)
400.0
5 201.0
816.0
4 350.5
(51.0)
19.5
Financial position
Total assets 26 968.1 16 104.4 12 018.1 2 027.6 57 118.2
Total liabilities 21 784.8 12 883.4 9 494.0 2 946.9 47 109.1
FOR THE YEAR ENDED
30 SEPTEMBER 2022 AND
¹ Turnover represents revenue from the sale of merchandise.
SPAR’S COMMITMENT
PERFORMANCE OVERVIEW UPDATE ON SAP TO THE FUTURE OF OUR BRAND
CASH DIVIDEND DECLARATION SPAR delivered a resilient group performance despite various challenges across
all regions. Group turnover increased by 6.0% to R135.6 billion. In constant
As part of the group’s digital transformation, the group-wide SAP implementation
commenced smoothly, with the successful launch of the new system at the
AND OUR PLANET
currency, turnover increased by 7.0%. Group profitability continued to be impacted Southern African central office in October 2022. The distribution centre in
The salient dates for the payment of the final dividend are detailed below:
by the consequences of the pandemic in the first half of this financial year and new KwaZulu-Natal (KZN) is due to launch the new system early in 2023, post the busy
OUR PURPOSE geopolitical circumstances which has seen all regions experiencing fuel and Christmas-trading period. The remaining distribution centres in South Africa will Last day to trade cum-dividend Tuesday, 6 December 2022
energy cost pressures. In South Africa these pressures were further exacerbated follow individually after KZN, to minimise potential business disruption. The foreign Shares to commence trading ex-dividend Wednesday, 7 December 2022
by the impact of ongoing electricity load shedding. The group delivered an regions are preparing their businesses for the SAP implementation, in line with the
to inspire people to do and be more operating profit of R3.4 billion, increasing by 1.1%. Diluted headline earnings per group implementation plan. Record date Friday, 9 December 2022
share decreased by 2.9% to 1 159.1 cents per share. The board of directors of Payment of dividend Monday, 12 December 2022
SPAR (board) has declared a final dividend of 225.0 cents per share, in line with OUTLOOK Shareholders will not be permitted to dematerialise or rematerialise their shares between
the temporarily adjusted dividend policy reducing the dividend for a period of two During the year, management announced a new leadership structure which will drive Wednesday, 7 December 2022 and Friday, 9 December 2022, both days inclusive.
years, to fund, inter alia, SPAR’s strategic investment in SAP. greater collaboration and alignment across the group. The structure includes a new In terms of South African taxation legislation effective from 1 April 2012, and the
chief executive officer (CEO) for the South African business, reporting to the CEO of JSE Limited Listings Requirements, the following additional information is disclosed:
SPAR Southern Africa contributed 65.0% of turnover for the group and
the group. The leadership changes have brought renewed energy and focus to the
delivered strong growth in wholesale turnover of 8.4% to R88.1 billion. This • The South African local dividend tax rate is 20%;
Southern African business and a medium-term plan to drive growth is underway. In
increase was assisted by an improved core grocery business performance which
South Africa, against the backdrop of a constrained consumer, low economic growth • The net local dividend amount is 180.0 cents per share for shareholders
generated an increase in sales of 5.3%. SPAR increased its promotional calendar
and subdued business confidence, the trading environment is expected to remain liable to pay tax on dividends, and 225.0 cents per share for shareholders
to continue to attract cash-strapped consumers. This increased promotional
unchanged in the short to medium term; however, our national and regional marketing exempt from such dividend tax;
activity, continued focus on store disciplines, a better fresh offering, as well as
teams have innovative promotional programmes geared towards helping SPAR
major store upgrades were key initiatives during the reporting period. SPAR made • The issued share capital of The SPAR Group Ltd is 192 602 355 ordinary
support price-conscious consumers and the needs of their communities.
excellent progress with its newly developed on-demand shopping platform shares; and
SPAR2U, having gone live at 87 stores during the second half of the financial year. BWG Group management remains cautious in their outlook for Ireland and
• The SPAR Group Ltd’s tax reference number is 9285/168/20/0.
Feedback from consumers using this new channel has been extremely positive. South West England. There is a real concern around the quantum and level of
Against the liquor trading restrictions in 2021, TOPS at SPAR delivered excellent price increases that are coming through as global energy markets continue to be Following the discontinuation of cheque payments by South African banks, the
liquor sales growth of 42.6%, rebounding strongly and reaffirming its position as volatile, driving energy-led price inflation throughout the supply chain. There is company no longer issues cheques and all payments will only be made into a
the number one liquor brand in South Africa. Build it delivered industry-leading also concern that consumer demand will weaken as the cost of living increases into nominated bank account by electronic funds transfer. Shareholders who have
turnover growth of 3.1% for the financial year and reported a strong second half the winter months. A core skill within BWG Group is taking corrective action to not yet provided their bank account details to the transfer secretaries are
performance as Build it retailers increased their market share. compensate for inevitable shortfalls that might occur. reminded to contact them on 086 147 2644 or +27 11 713 0800 with their bank
account details into which the dividends can be paid electronically.
BWG Group (Ireland and South West England) delivered an exceptional The Swiss team is cautiously confident about the new financial year. We continue
performance despite many challenges, with turnover growth of 7.6% in EUR- to develop relationships with potential partners in the petro-convenience sector By order of the board
WWW.THESPARGROUP.COM denominated currency. This business again demonstrated its resilience as it and management is excited about the opportunity to launch another four large
EUROSPAR supermarket formats in the year ahead. These initiatives will
Kevin O’Brien Pinetown
continues to adapt its operations in response to the challenging economic Company Secretary 16 November 2022
environment. BWG Foods in Ireland reported an impressive year of new store contribute towards growing SPAR’s presence in this country.
openings, and neighbourhood stores have largely retained the gains made during ABOUT THIS ANNOUNCEMENT
+6.0%
In Poland, management will focus on driving new business and improving retailer
the pandemic. Foodservices and licenced trade recovered strongly from purchasing loyalty rates through the increased product ranges in our distribution This short-form announcement is the responsibility of the directors and is only a
Group turnover¹ March 2022 onwards, having suffered further COVID-19 restrictions in the first half centres. While the economic situation remains challenging, given Poland’s summary of the information in the full announcement and does not contain full and
of the financial year. The group experienced rising operational costs in fuel, labour proximity to Ukraine, management remain firm in their belief in the opportunity complete details thereof.
and utilities. The business continued to invest in strategic acquisitions and within this market. SPAR Poland’s strategy execution and performance are closely The full announcement can be found at
acquired two cash and carry businesses in Ireland and 16 retail stores in South monitored by the board. https://senspdf.jse.co.za/documents/2022/jse/isse/SPP/FY22Report.pdf.
+1.1%
West England during the reporting period.
We extend our sincere gratitude to our people for everything they do to inspire The full announcement is also available on the company’s website at
Operating profit SPAR Switzerland experienced extraordinary levels of neighbourhood support others to do and be more, in line with SPAR’s purpose. We are humbled by the https://thespargroup.com/wp-content/uploads/2022/11/The_SPAR_Group_Ltd_
during the pandemic. As restrictions eased, consumers returned to large dedication, sacrifices made, and commitment of our retailers, to embed the SPAR Summarised_consolidated_group_results_for_year_ended_30_September_2022-1.pdf
supermarkets. Consequently, SPAR convenience stores have seen a retraction brand at the heart of our communities. We are better and stronger together. and copies may also be requested from the company’s registered office and at the
in the gains made during the pandemic with turnover declining by 3.0% in CHF- office of the JSE sponsor at no charge, during office hours. Any investment decision
Graham O’Connor Brett Botten in relation to the company’s shares should be based on the full announcement.
denominated currency, however turnover is 14.4% higher than pre-pandemic
+19.5%
Chairman Chief Executive Officer
Net asset value levels. Swiss food inflation rates increased substantially during the latter part
of the financial year, which has seen cross-border shopping returning to pre-
The consolidated annual financial statements for the year ended 30 September 2022,
DECLARATION OF ORDINARY DIVIDEND from which the full announcement has been extracted, have been audited by
per share pandemic levels. While this phenomenon traditionally impacted larger PricewaterhouseCoopers Inc. who expressed an unmodified opinion thereon. The
supermarkets more than smaller convenience stores, Swiss consumers will Notice is hereby given that a gross final cash dividend of 225.0 cents key audit matters contained in the auditor’s report are addressed on page 5 of the
continue to seek cheaper alternatives in neighbouring countries as prices (2021: 536.0 cents) per share has been declared by the board in respect of the consolidated annual financial statements for the year ended 30 September 2022,
increase. Swiss gastronomy has fully reopened and due to normalised restaurant year ended 30 September 2022. The dividend has been declared out of income which are available on SPAR’s website at https://thespargroup.com/wp-content/
+41
reserves. This brings the total gross dividend for the year to 400.0 cents uploads/2022/11/Annual_Financial_Statements_2022.pdf.
trading, our TopCC cash and carry business delivered strong turnover growth.
(2021: 816.0 cents) per ordinary share.
Net new stores SPAR Poland made a great deal of progress during the reporting period, with
decisive steps taken to rapidly facilitate business performance within this market. CORPORATE INFORMATION
A key area of focus for 2022 was to address the retailer loyalty issue. Assertive 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)
decisions were taken to terminate contracts with a group of SPAR retailers and (* Independent non-executive) (** Non-executive)
400
restructure the distribution centres. A group of 58 retailers with low levels Company Secretary: KJ O’Brien THE SPAR GROUP LTD: (SPAR) or (the company) or (the group) Registration number: 1967/001572/06 ISIN: ZAE000058517
of purchasing loyalty, elected to leave SPAR Poland. The loss of these retailers JSE share code: SPP Registered office: 22 Chancery Lane, PO Box 1589, Pinetown, 3600
Dividend per share has negatively impacted turnover growth in the second half of the financial year
Transfer secretaries: JSE Investor Services (Pty) Ltd, PO Box 4844, Johannesburg, 2000
Auditors: PricewaterhouseCoopers Inc., Waterfall City Heliport, 4 Lisbon Ln, Jukskei View, Midrand, 2090 Sponsor: One Capital, 17 Fricker Road, Illovo, 2196
cents
but despite this, SPAR Poland delivered turnover growth of 8.2% in PLN- Bankers and corporate brokers: Rand Merchant Bank, a division of FirstRand Bank Ltd, PO Box 4130, The Square, Umhlanga Rocks, 4021
# 16353
denominated currency terms. Operating losses for this region reduced by 9.5% in Attorneys: Garlicke & Bousfield, PO Box 1219, Umhlanga Rocks, 4320
local currency terms.
