Spur Corporation (SUR) H2 2026 earnings summary

Executive summary

• Total restaurant sales reached ZAR 12.3 billion, up 6.9% or 16.9% year-over-year depending on metric, with group revenue rising 8.5% to ZAR 4.19 billion and adjusted profit before tax up 12.8%.

• Earnings per share increased by 11.6%, headline earnings by 8.9%, and a final dividend of ZAR 2.06 per share was declared, totaling ZAR 3.26 for the year.

• The group maintained strong cash generation (ZAR 488.6 million) and a return on equity of 22.6%, with unrestricted cash reserves of ZAR 494 million as of June 30, 2026.

• A ZAR 129–129.5 million provision for GPS litigation impacted reported profit, but underlying trading performance remained robust.

Financial highlights

• Adjusted for the GPS litigation, net profit rose 11.5% year-over-year, with EPS up 11.6% and HEPS up 8.9%.

• Operating profit margin improved to 10.4% from 9.7% the prior year.

• Cash on hand at year-end was ZAR 554 million, with ZAR 60 million restricted.

• Franchisees invested over ZAR 200 million in revamps and relocations, with 52 new restaurants opened and several underperforming stores closed.

• Gross profit increased 6.9% to ZAR 1.35 billion; cost of sales rose 9.3%.

Outlook and guidance

• Strategic focus on elevating customer experience, franchisee profitability, supply chain resilience, ESG, and market expansion across Africa.

• Continued investment in AI, data, digital innovation, responsible sourcing, and environmental initiatives.

• Plans to expand virtual kitchen brands and new trading formats, targeting younger investors and new markets.

• Cautious optimism for trading conditions, with July and August post-year-end showing solid performance despite ongoing economic pressures.

• Focus on sustainable value creation, blending purpose with performance.