The SPAR Group (SPP) H2 2024 TU earnings summary

Executive summary

• EPS from continuing operations expected to increase 20%–30% year-over-year, reaching 824.6–893.4 cents per share.

• HEPS from continuing operations expected to rise 6%–16% year-over-year, to 875.6–958.2 cents per share.

• Total EPS including discontinued operations expected to decrease to 173.1–194.0 cents per share, reflecting a -17% to -7% change year-over-year.

• SPAR Poland classified as a discontinued operation, with a material impairment recognized on assets held for sale.

Financial highlights

• Group net debt reduced by R2 billion, from R11.1 billion to R9.1 billion, despite high interest rates.

• Net debt/EBITDA ratio improved to 2.44x as of 30 September 2024, down from 3.07x at 31 March 2024.

• Operating costs were well managed despite inflationary pressures.

Outlook and guidance

• System enhancements at the KwaZulu-Natal distribution centre are expected to continue improving service levels and trading margins into 2025.

• The sale of SPAR Poland is expected to complete after final due diligence, with closure anticipated within 30 business days of regulatory approval.