The SPAR Group (SPP) H1 2026 TU earnings summary

Executive summary

• Group wholesale turnover from continuing operations grew marginally year-over-year for the 26 weeks ended 27 March 2026.

• Revenue growth in Southern Africa lagged internal and official food CPI, reflecting volume and competitive pressures, but momentum improved in the latter half.

• Ireland delivered solid top-line growth in local currency, exceeding the prior period.

• EPS and HEPS from continuing operations are expected to be 50–60% lower year-over-year.

• Asset impairments, margin compression, and elevated costs weighed on profitability.

Financial highlights

• Group revenue growth for the 26 weeks: Southern Africa up 1.7%, Ireland up 3.4% (EUR), Group up 2.1%.

• EPS from continuing operations expected at 140–180 cents (down 65–55%); HEPS at 174–217 cents (down 60–50%) compared to H1 FY2025.

• Total operations (including discontinued): EPS expected at 70–80 cents, HEPS at 104–133 cents, both down 65–55%.

• Net debt increased due to higher working capital and Easter timing; all banking covenants met.

Outlook and guidance

• Structural initiatives underway to realign cost base and improve operating leverage, especially in Southern Africa.

• KZN margin recovery, dedicated SA Groceries & Liquor leadership, and cost realignment expected to benefit H2 FY2026.

• Management remains cautious due to rising fuel costs, debtor risk, competition, and macroeconomic uncertainty.