Spar : interim results March 2017

Revenue for the interim period increased by 13.9% to R48.4 billion (2016: R42.5 billion), gross profit jumped to R4.5 billion (2016: R3.7 billion), operating profit decreased by 4.1% to R1.2 billion (2016: R1.3 billion), profit for the period attributable to ordinary shareholders rose by 10% to R908 million (2016: R825.4 million), while headline earnings per share lowered 0.9% to 475.5 cents per share (2016: 480 cents per share).

Dividend
Notice was given that an interim gross cash dividend of 240 cents per share has been declared by the board in respect of the six months ended 31 March 2017.

Company prospects
In South Africa, the tough trading environment is likely to persist for the balance of this year, particularly with the political uncertainty undermining consumer and business confidence. SPAR's extensive distribution capacity and SPAR-branded products that offer exceptional value to consumers ensure that its independent retailers are suitably positioned to address these challenges.

The BWG Group's economic growth outlook is cautious, largely influenced by the Brexit uncertainties. However, management's proactive approach to addressing the slowing sales should ensure SPAR Ireland adapts to the changing conditions and will deliver a result in line with expectation. Recent acquisitions have strengthened this business and further retail consolidation opportunities will be evaluated to achieve its growth objectives.

In Switzerland, the new retail focused management team is tasked with addressing issues in the retail environment and the group recognises that this will take some time to achieve. The focus is primarily on retail execution and performance to achieve the required returns, supported by SPAR Switzerland's world-class distribution capability.