SPAR Group's growth plans in Southern Africa amid divestment plans in Europe

THE SPAR Group, which is divesting of some of its businesses in Europe, plans to grow in Southern Africa by enhancing its retail segments, leveraging partnerships with Uber Eats and Vida e Caffè, and increasing private label product penetration.

- EDWARD WEST

The retailer outlined its strategy for Southern Africa at the release on Wednesday of its interim results for the 26 weeks to March 28, which showed headline earnings a share falling by 0.4% to 450.1 cents. Revenue was flat at R66.1 billion (R66.2bn). Operating profit before extraordinary items grew by 1.6% to R1.46bn. South African operating profit increased by 5.5%, with the operating margin improving to 2%, up from 1.9%.

The interim dividend was passed due to the ongoing restructuring and in line with capital allocation priorities, directors said. Following a board decision to realise value from operations in Switzerland and the UK, these were now classified as discontinued assets in the results.