South Africa’s Spar Group Sees Turnover Up 23.8% In Full Year Results
Spar Group, which operates the Spar business in Southern Africa, as well as holds a majority stake in the Irish and Swiss Spar businesses, has seen its turnover in the year to September 30 rise by 23.8%.
In its Southern Africa business, turnover increased by 9.5%, while profit before tax grew by 15.7% to R2.1 billion.
In Ireland, its BWG Group business saw turnover grow by 36.8% (euro-denominated turnover growth of 14.5%), driven by a strong contribution from all its retail brands, including the recently-acquired Londis and Gilletts Groups. Profit after tax was up 106%, or 73% in euro terms.
The group acquired a majority stake in Spar Switzerland in April of this year, noting that the performance of this business in the first period of consolidation was ‘disappointing’.
“Going forward, we are confident that we will continue to grow and deliver value to our shareholders. Also important is our growing international diversification, with 32% of current turnover generated in foreign currency,” commented Spar Group chief executive Graham O’Connor.
“In southern Africa, we will not compromise on our organic growth focus, supporting our existing and new retailers to ensure their success, regardless of the uncertain economic and political landscapes. The Irish economy is robust, providing the BWG Group with a solid position to extend its strong performance, building on its successes in driving real business growth. Our Irish management team is upbeat about business prospects and growth opportunities despite the economic uncertainties relating to Brexit.
“We remain confident in the investment case for our Swiss acquisition. We have identified the issues that need to be addressed in order to achieve the expected profitability levels. Our focus is on improving SPAR Switzerland’s retail performance, to drive returns.”
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.