SPAR sees first-half earnings fall as UK divestment moves ahead

South Africa’s SPAR Group expects first-half net to diminution sharply, citing borderline pressure, operational issues successful KwaZulu-Natal (KZN), and higher impairments, arsenic it advances the merchantability of its UK business.

In its trading update, the institution said gross from continuing operations for the 26 weeks ended 27 March 2026 accrued by 2.1%.

Revenue successful Southern Africa accrued 1.7% portion Ireland reported gross maturation of 2.2% successful euro presumption and 3.4% successful rand terms.

SPAR Health gross climbed 26.1% portion gross from the Build it part roseate 1.3%.

The radical said header net per stock (EPS) from continuing operations are expected to alteration by 60% to 50% year-on-year to betwixt 174 cents (c) and 217c, from 434c successful the prior-year period.

EPS from continuing operations are expected to diminution by 65% to 55% to betwixt 140c and 180c, compared with 399c a twelvemonth earlier.

Spar said net were affected by borderline compression successful Southern Africa, elevated Black Friday promotional spending, underperformance astatine its KZN organisation centre, above-inflation outgo maturation and higher debtor impairments.

Gross nett borderline successful Southern Africa fell by betwixt 20 and 40 ground points during the period.

According to the group, show successful KZN was negatively affected by strategies that prioritised top-line maturation implicit profitability, arsenic good arsenic logistics capableness readying issues that disrupted work levels and raised costs.

It said KZN recorded 3 consecutive profitable months successful February, March and April 2026 aft corrective measures and enactment changes.

In Ireland, BWG Group improved gross nett borderline and operating borderline during the period, supported by amended supplier trading presumption and a favourable income mix.

Spar recognised astir R128m ($7.8m) successful bonzer impairments during the period, compared with R71m successful the anterior period.

These included goodwill impairments, firm store impairments and impairments of assets held for sale.

Including discontinued operations, header EPS are expected to autumn by 65% to 55% to betwixt 104c and 133c, from 296c successful the prior-year period.

Separately, the institution said past period that it had entered an plus acquisition statement with AF Blakemore & Son for the disposal of its UK business.

The transaction includes the close to run Spar successful South-West England, 71 company-owned stores, warehouse and logistics infrastructure, and associated autarkic retailer proviso agreements.

The disposal is expected to beryllium completed successful stages betwixt June and September 2026, with the UK concern continuing to beryllium classified arsenic a discontinued operation.