Spar Group FY HEPS down 47.7%

Spar Group, a leading retailer in Southern Africa, has been navigating through a challenging period as the cost of living crisis has impacted consumers across the globe. Angelo Swatz, the Chief Financial Officer of Spar Group, recently joined CNBC Africa's Fifi Peters to discuss the company's performance and future plans. With Swatz assuming the role of CEO in October, he provides insight into the key areas of focus to steer the business towards financial stability and restore morale within the organization. Swatz highlighted four key areas the company is focusing on in the short to medium term. Firstly, Spar Group is in the process of finalizing the Polish sale or acquisition, with plans to exit the market by the end of the financial year 2024. Secondly, the company is assessing the structure of its balance sheet to optimize debt management. Thirdly, Spar has paused the SAP rollout to strategize and implement the system more effectively. Lastly, the company is determined to enhance EBIT margins in its South African business over the next 24 months. When discussing the performance of individual regions, Swatz addressed the reported turnover growth of 5.1 percent in Southern Africa. He emphasized that despite challenges such as interest rate increases, inflation, and operational issues, Spar has maintained pace with the market in its core grocery business. Swatz expressed confidence in accelerating growth and highlighted the positive sales momentum in the second half of the year. While the building materials and liquor businesses faced pressure, particularly due to the ERP rollout, Spar remains focused on strengthening its position in these segments. Regarding the Swiss operations, Swatz mentioned that the business has been impacted by inflation, but the company anticipates solid growth in the upcoming year. Spar Group has plans to expand its presence and improve sales in Switzerland by collaborating with Avia fuel ports and leveraging its cash and carry business, Top CC. Swatz also shared insights on the recent Black Friday sales, noting that the company experienced record-breaking numbers during the promotional period. Despite the subdued market sentiment, Spar Group had a successful weekend, indicating positive results and setting a promising tone for the festive season ahead. As Spar Group continues to address challenges and implement strategic initiatives, investors can look forward to the company's efforts to enhance performance, optimize operations, and drive growth in various regions under Swatz's leadership.