SPAR Group improves performance in the second-half and strengthens its balance sheet

THE SPAR Group has generated a much improved second-half trading performance, with tight cost management, robust cash generation and a materially strengthened balance sheet.

- EDWARD WEST

THE SPAR Group, after its 52-week financial trading period to September 30, 2025, said it remains committed to resuming returns to shareholders over the short to medium term, either in the form of dividends and/or share buybacks, following a stronger financial performance in the 2025 financial year. IOL

The grocery retailer and wholesaler to independently-owned stores and to its own stores reset its business in the 52-weeks to September 26, 2024, optimising and simplifying the group structure. "We have taken purposeful steps to reduce debt, simplify the group, improve operational efficiency and restore resilience... The momentum we saw in the second half, combined with improved cash generation and lower leverage, gives us confidence in our ability to restore shareholder returns, while continuing to invest responsibly in the business,” said the CEO Angelo Swartz.

SPAR's net debt reduced by 40% to R5.4 billion from R9.1bn in 2024. This was mainly due to the strategic disposals of Switzerland and Poland, and improved working capital management. Cash generated increased to R5.4bn, up from R4.8bn.