Spar gets a boost from strong sales at Tops

Spar.
Spar.

Despite a tough local market, Spar saw strong liquor sales at its Tops chain.

Spar reported a profit increase of almost 10% (normalised diluted headline earnings per share), and its dividend per share was hiked 9.7% to 800c.

Its turnover rose 8% to R109.5bn, with almost a third now in foreign currencies. Spar SA owns businesses in Ireland and Switzerland.

In Southern African business saw turnover growth of 8% in a “tough market that remains highly competitive”.

Local turnover got a boost from strong growth of almost 18% in liquor sales. Spar owns the Tops chain. Its building materials business, Build It, saw turnover growth of almost 7%. Its gross profit margin in Southern Africa dipped slightly to 8.9%.

Prices at its local stores rose by 3.1% over the past year – compared to only 1.4% in the previous year.

In Southern Africa all indicators continue to suggest that consumers will remain under financial pressure, and Spar says construction plans for the previously announced distribution facilities have been placed on hold. It is also not planning any further property acquisitions in the regions.

Its Irish business grew turnover in 6% in euro, while SPAR Switzerland saw a decline of 1.5% in sales in the local currency.

The Irish outlook continues to be influenced by Brexit concerns, however this management team remains cautiously optimistic in both the Irish and South West England regions. The Swiss business remains confident that the identified strategic initiatives to improve the turnover performance are gaining momentum.

ZAR/USD
16.84
(-0.27)
ZAR/GBP
21.15
(+0.32)
ZAR/EUR
19.11
(-0.58)
ZAR/AUD
11.69
(-0.14)
ZAR/JPY
0.16
(+0.06)
Gold
1802.44
(+0.14)
Silver
19.07
(+1.63)
Platinum
826.18
(+0.59)
Brent Crude
43.02
(0.00)
Palladium
1965.00
(+0.71)
All Share
56199.46
(+1.41)
Top 40
51874.81
(+1.41)
Financial 15
10703.82
(+2.21)
Industrial 25
76910.63
(+1.02)
Resource 10
53327.86
(+1.61)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 2005 votes
I am taking a hit, but should be able to recover in the next year
23% - 2621 votes
My finances have been devastated
35% - 3932 votes
It's still too early to know what the full effect will be
25% - 2811 votes
Vote