South African grocer SPAR increases half-year profit by 3.7%
JOHANNESBURG, June 8 (Reuters) – SPAR Group of South Africa SPPJ.J reported a 3.7% increase in half-year earnings on Wednesday as its business continued to recover from COVID-19 restrictions.
The grocer said comprehensive diluted earnings per share (HEPS), the main measure of earnings in South Africa, rose to 641.1 cents in the six months to March 31 from 618.5 cents a year earlier. early.
The group’s revenue rose 5.2% to 67.6 billion rand ($4.38 billion), buoyed by its home-based business as it continued to recover from lockdown restrictions and civil unrest that destroyed its stores last year, while operating profit rose 7.1% to R1.8 billion.
Increased marketing initiatives and unlimited liquor trade, which led to increased footfall at SPAR stores, helped boost sales by 4.6% in the group’s core wholesale grocery business in southern Africa. Total wholesale sales jumped 7.7%.
At overseas businesses, while sales rose for some, profits came under pressure due to rising labor and energy costs, the retailer said.
BWG Foods – the group’s majority-owned business in Ireland and South West England – reported revenue growth of 8.3% in euros as foodservice sales rebounded strongly with the reopening of the hospitality industry.
SPAR Switzerland recorded a 1.6% decline in sales in Swiss francs, as the removal of pandemic-related restrictions significantly reduced the level of support for convenience stores, while Polish activity recorded sales growth of 6.5%.
SPAR declared an interim dividend of 175 cents per share, down 37.5% from a year ago.
($1 = R15.4263)
(Reporting by Nqobile Dludla; Editing by Clarence Fernandez and Shailesh Kuber)
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