THE SPAR GROUP LTD
Unaudited interim results for the six months ended 31 March 2022 and cash dividend declaration
+5.2% | +7.1% | ||||
Group | Operating | ||||
turnover | profit | ||||
+3.7% | 175.0 cents | ||||
Diluted headline | Interim dividend | ||||
earnings per share | per share | ||||
+10.4% | +55 | ||||
Net asset value | Net new | ||||
per share | stores | ||||
OUR PURPOSE
to inspire people to
do and be more
SALIENT FEATURES | SPAR Switzerland reported a decrease in turnover of 1.6% in CHF- | ||||||||||||||||||
Unaudited | Unaudited | ||||||||||||||||||
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 | % | |||||||||||||||||
of pandemic-related restrictions in the current period significantly reduced | |||||||||||||||||||
Rmillion | 2022 | 2021 change | |||||||||||||||||
Turnover1 | 67 605.2 | 64 240.5 | 5.2 | the level of neighbourhood store support which the business benefitted from | |||||||||||||||
Operating profit | 1 832.0 | 1 710.2 | 7.1 | during the height of COVID-19 restrictions. Increased electricity and fuel costs | |||||||||||||||
Earnings per share | (cents) | 605.5 | 616.4 | (1.8) | impacted overall profitability for this business. | The | SSAG | petro-convenience | |||||||||||
Headline earnings per share | (cents) | 642.6 | 620.7 | 3.5 | stores have contributed positively for the full | six | months | against only one | |||||||||||
Diluted headline earnings | |||||||||||||||||||
641.1 | month in the prior period. The TopCC cash and carry business has returned | ||||||||||||||||||
per share | (cents) | 618.5 | 3.7 | ||||||||||||||||
to growth, supported by the reopening of restaurants and hospitality. On a net | |||||||||||||||||||
Dividend per share2 | (cents) | 175.0 | 280.0 | (37.5) | |||||||||||||||
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 | ||||||||||||||
1 | Turnover represents revenue from the sale of merchandise. | 381 stores at the end of the period. | |||||||||||||||||
2 | On 16 February 2022, the board announced a change in the dividend policy for a period of | SPAR Poland reported turnover growth of 6.5% in PLN-denominated terms. | |||||||||||||||||
two years to fund inter alia the strategic SAP implementation. | |||||||||||||||||||
The further strategic closure of selected loss-making stores during the period | |||||||||||||||||||
SUMMARY SEGMENT ANALYSIS | impacted sales growth. Retailer loyalty for the independent retailers in the | ||||||||||||||||||
south of the country improved marginally to 31% at the end of March 2022 | |||||||||||||||||||
and further work to improve this level is in progress, which will drive growth for | |||||||||||||||||||
Southern | The SPAR | this business. The store closures resulted in a reduction in the store network of | |||||||||||||||||
Switzer- | Group | ||||||||||||||||||
19 stores to 208 stores at period end. | |||||||||||||||||||
Rmillion | Africa | Ireland | land | Poland | Ltd | ||||||||||||||
Profit/(loss) | OUTLOOK | DECLARATION OF ORDINARY DIVIDEND | |||||||||||||||||
Turnover | 44 621.4 | 14 853.3 | 6 864.7 | 1 265.8 | 67 605.2 | In South Africa, inflationary pressures will continue to persist, with the consumer | |||||||||||||
Notice is hereby given that an interim gross cash dividend of 175.0 cents | |||||||||||||||||||
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 | |||||||||||
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 | ||||||||||||||||||
1 355.8 | 314.7 | 158.4 | (187.5) | 1 641.4 | and is focused on providing a renewed SPAR-brand fresh offering, including | ||||||||||||||
taxation | of income reserves. | ||||||||||||||||||
fresh produce, butchery, bakery and home meal replacement. There is great | |||||||||||||||||||
Financial position | The salient dates for the payment of the interim dividend are detailed below: | ||||||||||||||||||
26 601.4 | 13 862.1 | 10 204.2 | 2 053.7 | 52 721.4 | enthusiasm from our independent retailers to implement SPAR's new online | ||||||||||||||
Total assets | |||||||||||||||||||
shopping platform, SPAR2U. Our online platform is receiving positive reviews | Declaration date | Wednesday, 8 June 2022 | |||||||||||||||||
Total liabilities | 21 603.2 | 11 433.5 | 8 374.7 | 2 892.8 | 44 304.2 | ||||||||||||||
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 | |||||||||||||||||
PERFORMANCE OVERVIEW | the absence of further pandemic-related liquor trading restrictions. Post period | Record date | Friday, 1 July 2022 | ||||||||||||||||
end, KwaZulu-Natal experienced devastating | floods. The damage to our | Payment of dividend | Monday, 4 July 2022 | ||||||||||||||||
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. | |||||||||||||||||||
In the European regions, with the pandemic-related regulations set aside, | • The South African local dividend tax rate is 20%; | ||||||||||||||||||
Diluted headline earnings per share increased by 3.7% to 641.1 cents. The | |||||||||||||||||||
board has declared an interim dividend of 175.0 cents per share, in line with | management teams are optimistic ahead of the summer months, which are | • | The net local dividend amount is 140.0 cents per share for shareholders | ||||||||||||||||
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 order of the board | |||||||||||||||||||
by increased marketing initiatives at retail, and unrestricted liquor trading, | next six months will be a crucial period for the Polish business and management | ||||||||||||||||||
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 | ||||||||||||||||||
for the SPAR brand to gain traction in petro-convenience in Switzerland and | |||||||||||||||||||
to be impacted by the stores which were closed due to the civil unrest in | |||||||||||||||||||
Poland going forward. | ABOUT THIS ANNOUNCEMENT | ||||||||||||||||||
July 2021. At the end of the period, 13 SPAR format stores and nine TOPS | |||||||||||||||||||
at | SPAR stores remained | closed. Following the lifting of the COVID-19 | The group continues to benefit from its diversity in terms of geographies and | This short-form announcement is the responsibility of the directors and is only | |||||||||||||||
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% | The full announcement can be found on SENS at | ||||||||||||||||||
and driving efficiencies across all our businesses are key areas of focus for the | |||||||||||||||||||
for the period. While Build it experienced a slowdown against the backdrop | https://senspdf.jse.co.za/documents/2022/JSE/ISSE/SPP/Interim_22.pdf. | ||||||||||||||||||
second half of the financial year. We remain well positioned to offer exceptional | |||||||||||||||||||
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. | |||||||||||||||||
The information contained in this short-form announcement has neither been | |||||||||||||||||||
to 2 493 stores, with 53 net new stores across all formats. | We will continue to provide an excellent service to our independent retailers and | ||||||||||||||||||
audited nor reviewed by the company's external auditors. | |||||||||||||||||||
to make a difference within the communities we serve. | |||||||||||||||||||
BWG Group (Ireland and South West England) delivered excellent turnover | |||||||||||||||||||
www.thespargroup.com | |||||||||||||||||||
growth of 8.3% in EUR-denominated terms. As consumers started to switch | Graham O'Connor | Brett Botten | |||||||||||||||||
spend to out-of-home channels with the easing of COVID-19 restrictions, the | Chairman | Chief Executive Officer | |||||||||||||||||
retail brands have managed to deliver an overall robust performance. Sales | |||||||||||||||||||
CORPORATE INFORMATION | |||||||||||||||||||
in | foodservices rebounded | strongly with | the reopening of the hospitality | ||||||||||||||||
industry. Appleby Westward in South West England has continued to benefit | 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) | ||||||||||||||||||
(* 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 | ||||||||||||||||||
During the period, there were a significant | number of | new store openings, | 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 | |||||||||||||||||||
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 | |||||||||||||||||
GREYMATTERFINCH # 15864
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The SPAR Group Limited published this content on 08 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 June 2022 05:31:03 UTC.