Advertise with fastmoving.co.za
 
 

High-spirited Spar has a big year
High-spirited Spar has a big year

High-spirited Spar has a big year

RETAILER NEWS

bdlive.co.za - Nov 17th 2016, 10:38

Spar Group has reported a 12% surge in full-year operating profit, largely defying the malaise in the local retail sector and the Brexit-inspired dip in Europe’s consumer confidence. 

In the year to the end of September, the food and drug retailer said operating profit had climbed to R2.6bn from R2.3bn in the previous year. Headline earnings per share jumped 22.1% to R10.20 and turnover rose 23.8% to R90.7bn.

CEO Graham O’Connor said Irish-based BWG Group had given "a sterling performance".

The BWG Group, which is Ireland’s largest convenience retailer, increased turnover 36.8% to R23.1bn.

In the year to the end of September, the food and drug retailer said operating profit had climbed to R2.6bn from R2.3bn in the previous year. Headline earnings per share jumped 22.1% to R10.20 and turnover rose 23.8% to R90.7bn.

CEO Graham O’Connor said Irish-based BWG Group had given "a sterling performance".

The BWG Group, which is Ireland’s largest convenience retailer, increased turnover 36.8% to R23.1bn.

"The most important is the managerial control of expenses. We must also change its retail format to convenience. We only hold 2.5% of the market in Switzerland but we intend to change the retail space there,"he said.

The group’s Southern African operations achieved turnover growth of 9.5% and a 6.2% rise in operating profit. Spar said this was due to higher marketing and information technology costs, contributions to closure costs of the Zimbabwean operation of R19.3m and net debt impairments rising by R15.7m.

Its store network in the region (including franchises) — which, besides its flagship grocery chain, includes Tops liquor outlets and the Build IT hardware chain — was 2,033 on September 30.

Kagiso Asset Management associate portfolio manager Simon Anderssen said Spar had delivered a credible performance in SA and Ireland. "The initial contribution from the Swiss division was disappointing but, looking ahead, management appear confident of an improving performance in this region," Anderssen said.

O’Connor said he expected a bumper Christmas. "I think it will be very competitive as it has been in the last couple of years. But I believe Pick n Pay, Shoprite and ourselves will do well."

Spar declared a final cash dividend of 410c per share, bringing the total gross dividend for the year to 665c.

Its share price closed 3.94% higher at R182 on Thursday. Spar is valued at about R33.7bn.



© Business Live MMXVI 

Read more about: spar group | spar | retail | profit

Related News

Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.

Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.

Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.

Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.

Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.