South African supermarket retailer SPAR Group has reported a 4% increase in turnover for its continuing operations in Southern Africa, Ireland, southwest England and Switzerland for the fiscal year (FY) ended 30 September 2024.
The retailer’s total turnover reached R152.33bn ($8.43bn) in FY24, up from R146.46bn the previous year.
However, growth slowed in the second half due to currency translation impacts as the South African rand (the Zuid-Afrikaanse Rand, or ZAR) strengthened, alongside decelerating food inflation and intensified competition.
SPAR Southern Africa, including Tops, Build it and Pharma, reported a turnover increase of 3.7%, navigating high inflation and interest rates against low GDP growth. BWG Group, representing Ireland and southwest England, saw a 2.8% increase in EUR (euro) terms and 6.7% in ZAR terms.
Conversely, SPAR Switzerland faced a turnover decline of 6.2% in CHF [Swiss franc] terms but only a marginal 0.3% decrease when converted to ZAR.
The group's earnings per share (EPS) improved significantly to 855.9 cents in FY24, marking a 24.5% increase from the previous year's 687.2 cents.
SPAR Group's gross profit stood at R18.17bn with a margin of 11.9%, and profit before taxation was reported at R2.11bn.
Operating expenses saw a modest rise of 3.5% to R18.7bn due to stringent cost management and efficiency initiatives.
The operating profit of R2.89bn represented a substantial year-on-year increase of 15.1%, with the operating profit margin improving to 1.9%.
A report from Reuters has also revealed that SPAR Group plans to launch its first premium grocery store post-Easter 2025, targeting affluent customers with up to four stores planned for the year.
SPAR Group CEO Angelo Swartz stated: "We're on track to launch in the first half of next year - it might be just after Easter. The launch will initially be one store, although we have three or four planned for the year."
The expansion strategy also includes entering the discount grocery market through the SaveMor store format revamp.
