The group also saw headline earnings rising by 12.8 per cent to 1.4 billion rand from 1.2 billion rand in 2013.
(READ MORE: SPAR buys majority stake in BWG group)
[DATA SPP:The SPAR Group Limited] delivered a 15 per cent improvement in turnover to 54.5 billion rand up from 47.4 billion rand in 2013.
Excluding BWG, the group reported turnover growth of 9.2 per cent to 51.7 billion rand with SPAR’s profit after tax having increased to 1.3 billion rand from 1.2 billion in 2013.
“SPAR’s reported gross margin rose to 8.3 per cent compared to 2013’s 8.1 per cent, largely attributed to an increased level of perishable product passing through its distribution centres,” said the group in a statement.
“The BWG business, which trades at higher gross margins, also contributed towards this increase.”
The group’s operating expenses increased 22.6 per cent to 3.2 billion rand up from 2.6 billion rand in 2013 but this was significantly impacted by the BWG consolidation, which, if excluded, would reflect a more appropriate increase in SPAR expenditure of 12.3 per cent.
(READ MORE: SPAR reports positive FY growth)
The group is upbeat about the future prospects.
“The group expects to see an improvement in the profitability of the Irish operations in the short term, which should have a positive impact on the group’s bottom line by 2016,” said the company.
“SPAR remains confident that the resilience of our people, our retailers and our business model will allow us to produce a strong trading performance in 2015.”