The SPAR Group Ltd today reported its interim results for the six months ended 28 March 2025, demonstrating continued margin recovery, strong cost discipline and further progress on strategic portfolio optimisation.
“Over the period, we made deliberate progress against the milestones we set to simplify and optimise our portfolio and strengthen our balance sheet.” says SPAR Group CEO Angelo Swartz.
“This positions us well to harness future opportunities. Looking ahead, our focus remains on driving continued margin improvement, executing effectively in our core markets and delivering on the remining elements of our strategic reset”.
Revenue growth in South Africa (+1.7%) and Ireland (-0.6% in local currency) reflected the ongoing pressure on consumer spending, compounded by low food inflation and the timing of Easter, which fell in the second half of the financial year. Growth was underpinned by strong momentum in the lower income customer segment. The Build it and SPAR Health businesses continued to gain traction, supported by strong retailer engagement and robust category performance.
The Group maintained its strategic focus on driving profitability through category mix optimisation and private label growth, alongside improved operational efficiency. Swartz anticipates continued margin improvement in the second half of the year as operational efficiency initiatives gain traction.
Following the SPAR Board’s decision to realise value from its operations in Switzerland and the United Kingdom, these have subsequently been classified as discontinued assets.
Financial highlights from continuing operations include:
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Group operating profit increased by 1.6%, with operating margin stable at 2.2%.
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South African operating profit rose 5.5%, with operating margin improving to 2.0%, up from 1.9%.
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Cash generated from operations was R1.4 billion, with gearing in South Africa and Ireland improving to 2.1x and 1.9x, respectively.
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Group gross margin expanded to 10.7% (H1 2024: 10.6%).
“SPAR’s strategy is gaining momentum, and we’re seeing the benefits of a focused portfolio, close collaboration with our independent retailers and our deep commitment to community-centric retailing,” continues Swartz. “By staying close to our communities and responding to their evolving needs, we’re building a stronger, more agile retail ecosystem.”
In Southern Africa, growth prospects are grounded in enhancing various retail segments, leveraging the strategic partnerships with Uber Eats and Vida e Caffè, and growing private label product penetration, offering customers quality and affordability, while building brand loyalty. The Group is stepping up its investment in customer convenience with the continued rollout of its on-demand digital platforms, SPAR2U and Build it 2U, bringing seamless shopping and delivery experiences to more communities. The partnership with Uber Eats, launched in Q1 2025, is now live in 130 stores and has enabled SPAR to reach new customers and enhance customer access and experience. Investment in pharmacist training facilities is underway to support the growth of SPAR Health, with the aim of doubling the pharmacy network by 2028.
BWG Group is driving growth by expanding its own-brand offering, sharpening everyday value, and growing its food services business. This is supported by range and pricing optimisation in high-margin categories, increased logistics capacity, modern store formats, and targeted acquisition opportunities.
“By aligning operations with market demands and maintaining a clear vision and strong financial foundation, we’re well-equipped to navigate future challenges – and capitalise on new opportunities – as the first choice retailer for consumers in the communities in which we operate,” concludes Swartz.
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