Latest news with #R66.1bn
Yahoo
14 hours ago
- Business
- Yahoo
SPAR Group sees EPS dip despite steady H1 2025 revenue growth
Multinational South Africa-based retail chain SPAR Group's operational performance during the first half (H1) of fiscal 2025 (FY25) has shown mixed results across different regions, with headline earnings per share (EPS) from continuing operations dipping slightly by 0.4% to 450.1 cents. Revenue from ongoing operations held steady at R66.1bn ($3.72bn), with gross profit climbing to R7.1bn. Operating profit experienced a modest rise of 1.6%, reaching R1.5bn, bolstered by enhanced cost management efforts. The group's earnings before interest, taxation, depreciation and amortisation (EBITDA) also saw an uptick of 1.7%, amounting to R1.7bn. SPAR Group made headway on its strategic objectives amidst a tough market environment, focusing on five critical areas: exiting Poland, restructuring debt within the group, conducting a strategic review of European operations, expanding the implementation of SAP [systems, application and data processing], and targeting an improvement in southern Africa EBIT margin to 3%, alongside achieving a leverage ratio between 1.5 and 2.0 times by fiscal year-end 2026. During the first half of 2025, the group achieved three of these goals: finalising the sale of SPAR Poland in January, completing debt restructuring in March, and announcing plans in May to divest its Swiss operations as well as AWG in the UK after thorough strategic evaluation and consideration of capital allocation priorities and long-term strategic direction. The group is in advanced negotiations with potential buyers for these businesses. SPAR Switzerland and AWG have been classified as discontinued operations, with post-tax losses including impairments amounting to R4.4bn. The board believes that the divestments are consistent with SPAR's strategy to concentrate on strengthening its core businesses in Southern Africa and Ireland. Cash generation from total operations significantly increased 50.1% to R1.9bn. In Southern Africa, the group's wholesale turnover increased 1.7%, with its grocery and liquor segments contributing to this growth. Retail revenue in the region also saw an increase of 1.9%. The SPAR2U app's delivery volumes surged 174%, demonstrating the brand's growing on-demand presence. Build it, the group's building materials retail brand, posted a sales increase of 4.1% with strong like-for-like retail growth. In Ireland, despite a marginal local currency revenue decrease, the gross margin benefited from a favourable product mix. The minimum wage increase, however, led to higher labour costs. No interim dividend has been declared for the period, with future considerations dependent on macroeconomic and operating conditions. Looking forward, SPAR Group is concentrating on margin improvement and operational execution in its core markets. In southern Africa, SPAR aims to enhance retail segments and operational efficiencies, with initiatives such as expanding on-demand services and increasing private label product penetration. In Ireland, SPAR Group subsidiary BWG Group, a food retail and wholesale distribution company, is focusing on growing its convenience retail brands and exploring new opportunities. "SPAR Group sees EPS dip despite steady H1 2025 revenue growth" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
TimesLIVE
3 days ago
- Business
- TimesLIVE
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.
TimesLIVE
16-05-2025
- Politics
- TimesLIVE
UAT outraged as Gauteng returns unspent R1bn to National Treasury
The United Africans Transformation (UAT) party expressed its disappointment at the Gauteng government after it was revealed that more than R1bn earmarked for critical services had been returned to the National Treasury due to underspending in the 2024/25 financial year. Provincial Treasury department head, Ncumisa Mnyani said on Monday that the department of health did not spend R724.6m of its R66bn allocated budget, while the department of education also failed to use R317.35m of its R66.1bn budget, Sowetan reported. The political party said people of Gauteng cannot continue to suffer because government officials are too slow, too disorganised, or too complacent to do their jobs. 'How does a government with a R66bn health budget fail to spend R724m, when clinics remain understaffed and healthcare infrastructure is crumbling? 'How does a department with a R66.1bn education budget fail to spend R317m, while township schools face overcrowding, poor sanitation and infrastructure backlogs?' the party said. It said Gauteng's infrastructure and services were in dire need of attention. This included roads with unaddressed potholes and maintenance needs, continuous power outages affecting daily life and economic productivity and underfunded schools requiring renovations for a conducive learning environment. 'The returned funds could have fixed our roads, schools and many more. Instead, we're stuck with potholes and darkness, crime, unemployment, lack of housing etc.'
