TOPS sales jump 42%, boosting Spar’s profits
The Spar group reported a 5% increase in group sales to R67.6 billion, with operating profit increasing by 7% to R1.8 billion in the six months to end-March.
Its diluted headline earnings per share increased by almost 4% to 641.1 cents, and the retail group declared an interim dividend of 175 cents per share.
Spar’s share price rose almost 2% in opening trade on Wednesday.
Spar’s TOPS made a strong recovery following the lifting of alcohol trading restrictions in September with growth of almost 42% in sales compared to the same period in the previous year. Wholesale grocery and liquor turnover increased by 8.5% for the period.https://640ee513d881a5c3f38ca9c1e9c1423d.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Trading was still impacted by the closure of stores since the unrest in July last year. At the end of the period, 13 Spar and nine TOPS stores remained closed. However 26 new stores were opened across the group in the period.
While Build It experienced a slowdown against the previous high levels of DIY and home improvement spending during the height of the pandemic, its turnover increased by 1.4%.
While Spar’s South African business reported “strong” growth, its profits in the foreign businesses came under pressure due to increased labour and energy costs.
Spar Poland reported turnover growth of 6.5% in the local currency, while Spar Switzerland reported a decrease in turnover of 1.6%. Spar closed 19 loss-making stores in Poland and five stores in Switzerland. The BWG Group in Ireland and South West England, however, delivered turnover growth of 8.3% in euro.