Supermarket group SPAR reports slight drop in earnings
Supermarket retailer SPAR Group reported on Wednesday a marginal decline in half-year earnings as group revenue from continuing operations remained steady at R66.1bn.
The retailer said headline earnings per share from continuing operations fell by 0.4% to 450.1c in the 26 weeks ended March 28, down from 451.9c a year earlier.
Group operating profit increased by 1.6% to R1.5bn, supported by improved cost discipline, with its operating margin stable at 2.2%.
In Southern Africa, wholesale turnover increased by 1.7% to R49.9bn, reflecting the ongoing pressure on consumer spending, compounded by lower food inflation, Mozambique post-election unrest, the timing of Easter falling in the second half of this financial year and shop closures in Gauteng, SPAR said.
Combined grocery and liquor wholesale revenue rose by 1.1%, while retail revenue increased by 1.9%, with like-for-like sales up 1.6%.
Growth was underpinned by strong momentum in the lower-income customer segment, while the middle and upper segments' performance lagged the market, the retailer said.
Ireland reported local currency revenue fell by 0.6% in an environment where inflation is challenging volumes in the retail convenience sector.
Reuters
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Daily Maverick
11 hours ago
- Daily Maverick
SA's rural women who save — driving social cohesion, gender equality and climate resilience
Last year in South Africa, women, vulnerable individuals and rural communities collectively saved more than half a billion rands. NoWinile Lungiswa Mangquzana is a smallholder from Ntabankulu Mabofu, Eastern Cape, who grows organic produce and raises chickens. She sells her cabbages and spinach to Boxer Store and Spar, and supplies the local community with vegetables, seedlings, chickens, and eggs. Mangquzana, a successful entrepreneur, continues to grow her small business enterprise through careful saving and directed grants. She has even installed an irrigation system run on solar power for when the taps run dry, as they often do. Most middle-class South Africans still haven't managed to install solar power (3.51%) despite load shedding, which has been part of the national sensibility for almost two decades. So, what has allowed Mangquzana to allocate for this significant cost alongside the challenges of running a business that supports her family? Spoiler alert: It's not a miracle, winning the lottery, or a gift from the gods. Wealth management It's saving. A word that pairs nicely with chores, paying taxes, bureaucratic form-filling, and queuing at Home Affairs. For most of us, saving is something we should do, but we'll get to it later. Maybe. And, while some of us may be lucky enough to have parents who espoused the virtues of emergency funds, nest eggs, and cash flow, for the most part, the wealthy teach wealth management to their kids, and the poor and middle-class operate under the system of 'getting by'. However, now, more than ever, saving needs a massive rebrand. And the taglines of old, 'Save for a rainy day' and 'Waste not, want not', are simply not cut out to compete with the heady allure of consumerism and spending. Yet, in rural parts of the country, for Mangquzana and thousands of other South Africans (particularly women), saving is a growing movement. Since 2008, the NPO SaveAct, along with its partners, has empowered vulnerable individuals, provided financial education, and facilitated the formation of savings groups. SaveAct founder and executive director Anton Krone explains, 'Twenty years ago, I dared to imagine that rural women would save and take collective steps towards claiming their rights to safety and food security. Then, 1,000 women in savings groups seemed like a realistic goal to demonstrate that this would be an effective model. Now, there are more than 100,000 (savers), and we have ambitious plans to build an ecosystem of collaborators to reach two million women.' These community-led savings groups are a simple and innovative way to develop sustainable livelihoods and promote a circular economy, wellbeing and enterprise development. The system is simple enough; participants (92% women) consistently save small amounts in a collective pool and then provide each other with interest-bearing loans. At the root of the structure are community, trust, discipline, accountability, and support that foster confidence to build, grow, and improve. Krone sees the potential for growth by 'building a collaborative ecosystem of partners playing various complementary roles to enable this work to be scaled more rapidly to attain the goal of reaching two million women over the next decade. With more stakeholder engagement, the vision of social and economic justice is achievable.' Last year, the members in SaveAct's collective savings groups saved a whopping R535-million. In the current context of the country, this is a staggering feat. As a culture of consumerism, spending is promoted as an important driver of GDP, business growth, job creation, and a generator of tax revenue. However, there's a more problematic facet. Post-apartheid South Africa has framed spending and consumerism as cultural and social signifiers of success, freedom, and equality. Since democracy, aspirational culture has broadened through advertising, social discourse and the ever-present credit facilities that make it easier for low-income South Africans to participate in the cycle of consumerism. And with this participation comes massive debt. Under the allure of conspicuous consumption and aspiration is the harsh reality that most South Africans live paycheck to paycheck. Between May 2022 and May 2023, FNB estimated that middle-income South Africans spent up to 80% of their salary within just five days of payday. This finding specifically applies to earners in the R180,000-R500,000/year bracket. Responsible Finance Forum's 2025 survey indicates that about 10 million adults are over‑indebted, with 12 million struggling financially when informal debt is included. Of course, it's easy to cast aspersions on how people spend their money. However, many people are in debt not because of overspending on luxuries, but because of everyday costs, exacerbating long-term debt issues, and cultural expectations. And, while the government has introduced measures to encourage saving, these don't always translate into practice. The reality is that daily survival is more important than long-term security, which is compounded by apathy and disenchantment about the country's political, personal and economic security. As a business owner, having a bank account and access to capital are crucial. Yet, as of 2022, 15% of South Africans, or about nine million people, were unbanked. The reasons include insufficient funds, limited access to banking infrastructure (both offline and online), and a lack of identification. These problems are even worse for women and youth because of systemic barriers to financial inclusion. So, while South Africa has made significant strides in financial inclusion, there's still a long way to go, as Mangquzana describes. When she tried to go the traditional route to open a bank account, after months and months of waiting, she was eventually stonewalled. That's when she started with SaveAct and simultaneously entered into their enterprise development support programme. Asset-Based Community Development SaveAct applies an internationally recognised Asset-Based Community Development (ABCD) stakeholder-driven planning framework. In layman's terms, it helps vulnerable individuals and households identify economic possibilities in their local environment and contexts. There are many misconceptions about the NPO and NGO sector, such as that these organisations are just handouts or charity-based. However, organisations like SaveAct are committed to long-term problem-solving, giving communities agency and a sense of purpose. The SaveAct model is incredibly successful – savings groups in South Africa save on average six times more than groups across Africa. And it's not just about saving. SaveAct also addresses the challenges of gender inequality, economic marginalisation and climate vulnerability. SaveAct's programmes are designed to improve livelihoods and empower individuals so that women such as Mangquzana can grow their businesses while also addressing social challenges. Nolufefe Nonjeke-Dlanjwa has been a passionate programme manager at SaveAct since 2008. She explains the impact she sees in the communities she works in, 'There is nothing more fulfilling than seeing savings group members, particularly from vulnerable households, diligently putting money aside in these savings groups, strongly believing that what they want to achieve to better their living conditions is possible within realistic milestones. With financial education lessons embedded in the savings group operations, members can make well-informed decisions to better manage their household finances.' Emerging research shows how savings groups build gender equality in communities through empowerment and gender dialogue. Facilitated gender dialogue raises awareness of unequal power relations and social norms, encouraging shifts in attitudes and behaviours. Through these interventions, men become gender allies, which reduces domestic conflict and even GBV. Women in savings groups become respected members of the community through their proven ability to manage finances and invest in assets, education, maintenance, and so on. Climate resilience SaveAct also helps mitigate the damaging effects of climate change through agroecology and sustainable land management. According to the Intergovernmental Panel on Climate Change (2019), climate change is happening more rapidly than predicted. Many South Africans depend on the land for farming, and the impacts of overgrazing, unsustainable land use and biodiversity loss are worsened by climate change, particularly in regions prone to drought, erratic rainfall and soil degradation. This also has a gendered element because women are more vulnerable to climate change because of economic inequality, their role as caregivers, limited mobility because of restricted access to travel, and health impacts. In rural areas, women are also often responsible for food production and water collection. Savings groups help communities ease the effects of unanticipated climate shocks and act as a catalyst for resilience by improving cash flow and emergency relief funds. Furthermore, they help secure finances that may be needed to combat land degradation. Reversing land degradation can help adaptation to climate change, but a major challenge is mechanisms to incentivise rural communities to address it. One of the core tenets of SaveAct is sustainable land management because it has immediate and long-term benefits. Driving change Mangquzana has implemented what she has learnt from SaveAct and is committed to organic farming and sustainable methods. She uses onions, pepper water and other agroecology methods to keep pests away and is fastidious about her soil quality. Mangquzana keeps a vigilant eye on soil health and has measures in place to ensure it isn't too acidic or degrading. And, she is proud that she is passing on knowledge to the community so that she can drive change. At face value, these savings groups are just groups of women armed with notebooks. However, they are communities of practice where women drive tangible social, economic and ecological change. Krone elaborates, 'As women take advantage of these opportunities, they grow in confidence and assume control over their destinies. They are able to assert their agency and push back against systemic violence and marginalisation.' The burgeoning savings groups in rural South Africa are lived experiences of positive and sustainable change, improved social cohesion, robust gender discourse, social and economic empowerment and climate change resilience. Rural South African savings groups drive positive, sustainable change, fostering social cohesion, gender equality, empowerment, and climate resilience. These groups inspire a counterculture of long-term thinking and delayed gratification that proves financial resilience isn't a dream, but a real possibility. And real freedom is in saving. DM Dr Jaqui Hiltermann is a writer with a PhD in media studies from the University of Cape Town. She writes in her personal capacity.
The Citizen
2 days ago
- The Citizen
Spar South Africa CEO resigns amid financial challenges to lead McDonald's
Spar South Africa CEO Max Oliva will assume his role as McDonald's South Africa CEO on 1 July 2025. Spar South Africa CEO Max Oliva has resigned from the group, just days after the retailer announced a decline in profits and a R4 billion loss. The retailer said Oliva resigned after 30 years at Spar on Tuesday. 'It has been an honour to serve Spar for the past three decades. While this was not an easy decision, I am confident that the business is in capable hands. Angelo has my full support, and I am excited to see how the team continues to build on the momentum we've created,' he said. Spar SA's next CEO The retailer said Spar Group chief executive officer, Angelo Swartz, will replace Oliva. 'To ensure continuity and maintain the strong momentum Spar South Africa is currently experiencing, Swartz will assume operational leadership of the Southern Africa region.' He has been with Spar for 16 years and was appointed Group CEO in 2023. Before Spar he was at Woolworths. 'I have had the privilege of working closely with Oliva for many years and have immense respect for his leadership and the legacy he leaves. 'Thanks to the strong foundation he has laid, I approach this next phase with confidence that, together with our talented team, we will continue to push forward and deliver on our growth ambitions for Southern Africa,' said Swartz. ALSO READ: Is Spar in trouble? Retailer closes stores as sales decrease Spar SA CEO leaves to lead McDonald's Spar wished Olivia well as the CEO of McDonald's South Africa. He will assume his role on 1 July 2025. The retailer said Oliva's time at Spar helped the Group navigate some of the most challenging periods, including the Covid-19 pandemic, the implementation of SAP, and the broader adoption of new technologies across the business. McDonald's said the appointment comes at a time when the fast-food chain is evolving in a rapidly changing consumer landscape. 'He was selected following a rigorous executive search process aimed at identifying a leader with the vision, discipline, and commercial acumen to guide the business into its next phase of transformation.' R4 billion hit Spar's financial results for the 26 weeks ended 28 March 2025, released last week, showed that it has taken a hit of more than R4 billion after exiting its operations with Spar Switzerland and the Appleby Westward Group (AWG). 'These businesses recorded aggregate post-tax losses of R4.4 billion, including impairments of R4.2 billion.' However, the loss was anticipated as the exit of the operations is part of Spar's strategy aimed at strengthening its balance sheet and recovering margins. ALSO READ: McDonald's SA CEO steps down Profits nosedive The financial results also revealed its operating profits nosedived by 5.7% to R1.35 billion, compared to R1.43 billion during the same period in 2024. Spar has also concluded the disposal of Spar Poland in January 2025. Which was one of the five key focus areas for Spar. The second key focus area that has been achieved is the completion of the Group's debt restructuring in March 2025 and May 2025. It's not all bad; the Group's revenue from continuing operations remained steady at R66.1 billion, while gross profit increased to R7.1 billion. In Southern Africa, wholesale turnover increased by 1.7%. Combined grocery and liquor wholesale revenue rose by 1.1%, while retail revenue increased by 1.9%. NOW READ: Pick n Pay CEO receives the highest salary in retail. Here's how much others get
IOL News
2 days ago
- IOL News
Max Oliva steps down as SPAR South Africa CEO after 30 years at the helm
The SPAR Group today announced a significant leadership change, with Max Oliva stepping down as CEO of SPAR South Africa after 30 remarkable years. Image: Supplied Max Oliva has announced his decision to step down as CEO of SPAR South Africa, marking the end of a 30-year career with the company as he embarks on a new journey to take the reins at McDonald's South Africa. Angelo Swartz, the CEO of the SPAR Group, is set to assume operational leadership of the Southern Africa region. Oliva's departure coincides with an ideal moment for SPAR South Africa, which is currently experiencing strong growth and momentum within the retail sector. The group said this transition aims to uphold the successes and strategies put in place by Oliva, ensuring that SPAR South Africa continues to thrive in a competitive marketplace. Oliva leaves behind a legacy marked by resilience and integrity. Over the span of his career, he has held various senior leadership roles within the group, culminating in his position as the CEO of SPAR South Africa—the largest entity in the Group. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ His steady hand guided the organisation through some of its toughest challenges, including the COVID-19 pandemic and the implementation of transformative technologies such as SAP. "It has been an honour to serve SPAR for the past three decades," Oliva said. "While this was not an easy decision, I am confident that the business is in capable hands. Angelo has my full support, and I am excited to see how the team continues to build on the momentum we've created." Swartz echoed Oliva's sentiments, acknowledging the fulfilling years they spent working together and saying he has immense respect for his leadership and the legacy he leaves. "Thanks to the strong foundation he has laid, I approach this next phase with confidence that, together with our talented team, we will continue to push forward and deliver on our growth ambitions for Southern Africa," Swartz said. Swartz's transition to this expanded role is reinforced by the support of a robust and experienced Group Executive Committee, which will drive strategic and operational initiatives across SPAR South Africa. This supportive structure allows Swartz to focus on the Southern African operations and ensure critical objectives are met—especially in reigniting top-line growth and enhancing operational efficiencies while supporting independent retailers. BUSINESS REPORT
