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Trading statement and trading update for the 52 weeks ended 26 September 2025
THE SPAR GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1967/001572/06)
JSE and A2X share code: SPP
ISIN: ZAE000058517
("SPAR" or the "Group")
TRADING STATEMENT AND TRADING UPDATE FOR THE 52 WEEKS ENDED 26 SEPTEMBER 2025
SPAR is in the process of finalising its annual financial results ("Results") for the 52 weeks
ended 26 September 2025 ("Current period"). In terms of paragraph 3.4(b) of the
JSE Limited Listings Requirements ("JSE Listings Requirements"), issuers are required to
publish a trading statement as soon as they are satisfied that a reasonable degree of certainty
exists that the financial results for the period to be reported on will differ by at least 20% from
the financial results for the previous corresponding period.
Due, in large part, to once-off impairments processed during the Current period, earnings per
share ("EPS") from continuing operations on a comparable basis will be lower by between
40% and 50% compared to the 52 weeks ended 27 September 2024 ("Prior period").
Headline earnings per share ("HEPS") from continuing operations on a comparable basis will
be lower by between 7.5% and 12.5% compared to the Prior period, due mainly to the SPAR
Poland exit financing costs and related tax as set out below.
Salient features:
• On a constant currency basis, Group revenue growth improved in the 26 weeks
ended 26 September 2025 ("FY2025 H2") compared to the 26 weeks ended
28 March 2025 ("FY2025 H1").
• Group gross profit margin improved year-on-year with Southern Africa operating profit
growth showing an improvement in FY2025 H2 compared to FY2025 H1.
• The Group's net financing costs in the Current period were about 20% higher than
the Prior period, mainly due to SPAR Poland-related debt which was assumed in
South Africa, as previously communicated. This also increased the Group's effective
tax rate as a result of the associated unproductive interest. Both items contributed to
the decrease in HEPS.
• Pleasingly, Group net debt reduced by 40%, from R9.1 billion in the Prior period to
R5.4 billion, due to strong cash generation and the sale of SPAR Switzerland. Net
debt in South Africa reduced to R3.2 billion (2024: R3.4 billion). Despite the outflows
relating to the offshore exits, Southern Africa gearing reduced to 1.85x. Ireland
maintained stable gearing levels. Group leverage ended the year below 2x.
• Carrying values of assets on the Group's balance sheet were proactively reassessed
which resulted in the impairment of Southern Africa corporate store assets and
associated goodwill during FY2025 H2. This, together with a reduction in the carrying
value of the Appleby Westward Group ("AWG") in the United Kingdom and the
impairment of SPAR Switzerland in FY2025 H1, has resulted in the Group's assets
and equity reducing by R5.2bn over the Current period.
• The disposals of SPAR Poland and SPAR Switzerland have enhanced the Group's
financial strength, provided flexibility and enhanced management's focus on
supporting its strategic priorities. The Group is committed to resuming returns to
shareholders over the short to medium term, either in the form of dividends and/or
share buybacks.
Earnings guidance - Continuing Operations
As previously reported, the SPAR Board approved an amendment to the Group's financial
reporting period to align with retail industry practice. Accordingly, the Group adopted a
26/52 week reporting framework with effect from the 2025 financial year.
In respect of the Group's annual results from continuing operations, SPAR shareholders
("Shareholders") are advised that the Group expects to report EPS and HEPS for the
Current period (excluding the results of discontinued operations; SPAR Poland, SPAR
Switzerland and AWG) within the ranges provided below:
52 weeks ended 52 weeks ended Year-ended
52 weeks ended 26 September 27 September 30 September
Continuing 26 September 2025 2024* 2024
operations 2025 expected range re-presented as reported
expected range# (cents per (cents per (cents per
(%) share) share) share)
HEPS -11.5 to -16.5 748.1 to 792.9 896.0 917.9
Diluted HEPS -11.5 to -16.5 747.9 to 792.6 895.6 917.5
EPS -45.0 to -55.0 375.4 to 458.9 834.3 855.9
Diluted EPS -45.0 to -55.0 375.3 to 458.7 834.0 855.6
Comparable^ earnings
HEPS -7.5 to -12.5 764.8 to 808.5 874.0
Diluted HEPS -7.5 to -12.5 764.5 to 808.2 873.7
EPS -40.0 to -50.0 406.2 to 487.4 812.4
Diluted EPS -40.0 to -50.0 406.0 to 487.2 812.1
# Expected percentage range compared to the September 2024 re-presented amounts.
* September 2024 was re-presented for discontinued operations (SPAR Switzerland and AWG) in accordance with
IFRS 5. SPAR Poland was already shown as a discontinued operation in the Prior period.
^ Continuing operations earnings adjusted to allow for comparability after taking into account the impact of the
adoption of the 26/52 week reporting framework.
The following factors impacted earnings in the Current period:
1. Operating performance from continuing operations
Group revenue saw better momentum during FY2025 H2, although full-year growth
reflected a modest uplift due to a subdued FY2025 H1. Gross profit margin improved
year-on-year and remained broadly in line with FY2025 H1 despite the tough trading
environment. Operating profit in constant currency increased year-on-year.
SPAR Southern Africa delivered a stronger FY2025 H2 operating performance;
largely driven by improving sales in the grocery and liquor businesses but supported
by strong cost discipline across the business.
In Ireland, top-line growth in FY2025 H2 was positive. Gross margins improved
marginally; however, foreign currency translation at Group level diluted these gains
to some extent.
The Group's financing costs were higher due to SPAR Poland-related debt assumed
in South Africa. As mentioned above, the related tax on unproductive interest also
increased the Group's effective tax rate. Both items weighed on profit after tax and
the decrease in HEPS. As the Group deleverages, the impacts of the Poland and
Switzerland exits are expected to reduce.
2. Impairments
The Group has refined its assessment of goodwill related to corporate stores within
Southern Africa. During FY2025 H2, a change was made in defining the cash
generating unit ("CGU") for purposes of impairment testing. The change resulted in
each corporate-owned store being recognised as a separate CGU, leading to
impairments relating to goodwill and right-of-use assets. These impairments
contributed to the decrease in EPS and Diluted EPS from continuing operations.
The investment in AWG was further impaired in FY2025 H2 to reflect the most recent
estimate of carrying value. This impairment is shown within discontinued operations.
In summary, the impairments recognised during the Current period were as follows:
Impairment of SPAR Switzerland (discontinued R3.0 billion
operation)
Impairment of AWG (discontinued operation) R1.6 billion
Impairment of Southern Africa corporate store R0.6 billion
goodwill and other assets (continuing operations)
These impairments reflect management's focus on balance sheet integrity and
ensuring that asset carrying values accurately represent underlying economic reality.
The Board is satisfied that the revised balance sheet is now reflective of the
underlying capital structure of the Group.
Earnings from total operations
Shareholders are advised that in respect of total earnings, including discontinued operations,
EPS and HEPS for the Current period are expected to fall within the ranges provided in the
table below:
Total – 52 weeks ended 52 weeks ended Year-ended 30
continuing and 26 September 2025 26 September 2025 September 2024
discontinued expected range expected range as reported
operations (%) (cents per share) (cents per share)
HEPS -27.5 to -32.5 497.2 to 534.1 736.7
Diluted HEPS -27.5 to -32.5 497.1 to 533.9 736.4
EPS _* -2 381.7 to -2 632.4 182.7
Diluted EPS _* -2 380.3 to -2 630.8 182.7
* >1 000%
Looking ahead
In response to margin, cost and competitive pressures, the Group has identified and
accelerated the roll-out of further initiatives aimed at strengthening operations, driving
efficiencies and re-establishing the long-term sustainability of SPAR's business model.
These investments; in process optimisation, technology enablement, and supply chain
resilience, are fundamental to creating a more agile and efficient business for both SPAR
and our independent retailers. Looking ahead, management expects these initiatives to
deliver margin expansion and improved returns over the medium term.
The Group's financial position has improved significantly over the past 12 months, and a
stronger balance sheet, improved cash generation profile and continued disciplined capital
allocation will support this next phase of transformation and growth. Management is confident
that the execution of these initiatives will create sustainable long-term value for Shareholders.
Results presentation
The Results are expected to be published on SENS by 07h30am (SAST) on Monday,
8 December 2025 and will be available on SPAR's corporate website shortly thereafter:
https://thespargroup.com/. The Results webcast presentation, hosted by
SPAR management, will follow at 09h30am (SAST) on the same day. The webcast will be
accessible via the following link: https://www.corpcam.com/SPAR08122025.
Shareholders are advised that this announcement does not constitute an earnings forecast,
that the financial information provided herein is the responsibility of the Board, and that such
information has neither been audited, reviewed or reported on by the Group's auditors.
By order of the Board
Umhlanga
21 November 2025
Sponsor
One Capital
Corporate Broker
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 21-11-2025 10:06:00
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