SPAR turnover up by 7.6 per cent - CNBC Africa

SPAR turnover up by 7.6 per cent


by Trust Matsilele 0

SPAR turnover up by 7.6 per cent half year ended 31 March 2014. PHOTO: SPAR

The group’s performance has been attributed to strong performance of liquor and building materials.

(READ MORE: SPAR reports positive FY growth)

“Combined food and liquor retail sales, which allows for a better industry comparative, increased by 7.1 per cent and 6.8 per cent on a like-for-like store basis,” the SPAR group stated.

“These two products delivered double digit growth and countered the impact of heightened competition experienced in food retail,” the company added.

Headline earnings rose 9.3 per cent to 642 million rand from 587 million rand in 2013.

The company also reported an increase in headline earnings per share to 372 cents up from 341 cents the previous year.

 [DATA SPP:The SPAR Group Limited]  wholesale’s interim dividend is up by 8.9 per cent at 195 cents from 179 cents in 2013.

However, the group noted that turnover growth was negatively influenced by the later Easter holidays in the current year.

“Trading conditions remain tough with ongoing pressure on consumer spending due to rising unemployment, increasing household debt and interest rates.”

The group also posited that the never ending mining strikes had affected the company performance.

“Mine strike action has affected trading in certain rural regions through reduced disposable income.”

Retailers continue to be faced with fierce competitor activity, as well as increasing energy and operating costs.

The company registered an 8.6 per cent increment on profit before taxation from 819 million rand in 2013 to 889 million rand in 2014.

The company said that it remains positive going forward.

“SPAR anticipates that market conditions will remain largely unchanged for the remainder of the financial year with continued stress on consumer spending, muted and economic growth.”