Spar full-year profit lags consensus
Fin24 - Nov 22nd 2011, 07:57
Johannesburg - Grocery retailer Spar Group [JSE:SPP] missed forecasts with a 3.3% rise in full-year profit as tough competition, weak selling prices and fragile consumer demand weighed on its margins.
Spar, which also operates liquor and building materials stores, said on Wednesday diluted headline earnings totalled 522.8 cents in the year to end-September, well below a consensus estimate of 537.6c by 12 analysts polled by Reuters.
While consumers gradually spend again thanks to decades-low interest rates and lower food inflation, increased competition after Walmart’s entry has weighed on retailers seeking to protect their market share.
Spar said sales rose 10.4% to R38.8bn.
The company, which raised its annual dividend by 4.1% to 377c, said it would consider using surplus cash to buy back shares as it targets capital expenditure of not more than R190m for the next fiscal year.
Shares in Spar are virtually unchanged so far this year, but the general retailers index has dropped more than 12% in the year to date.
Consumers drink while retailers keep the tills active and lights on
10/09/2019 - 11:19
One in five South Africans is unemployed and economic growth remains anaemic, but retailers manage to grow, demonstrating that they still have some defensive qualities.
The SA liquor market is changing - these are the new favourites, says expert
21/08/2019 - 09:05
The way South Africans are consuming liquor is changing from traditional, heritage brands to modern, urban, "idiosyncratic" brands, according to Rowan Leibbrandt, founder of fine liquor merchants Truman & Orange.
Choppies to exit SA market, chair to step down
15/08/2019 - 09:03
Botswana-based grocery retailer, Choppies, has announced that it will be exiting the South African market, four years after expanding into the country.
All women team brew special beer to celebrate Women's Month
05/08/2019 - 10:38
SAB will be launching BOLD BREW– a beer designed and brewed entirely by women– this limited edition small batch beer is exclusively available at the SAB World of Beer in Newtown, Johannesburg.
Inflation accelerates slightly in May
19/06/2019 - 11:24
Inflation accelerated slightly to 4.5% in May, giving impetus to calls for an interest cut in July.