Spar Group Reports Increase in Profit, No Dividends

Spar Group reported an 11.1% rise in annual profit, with headline earnings per share increasing to 917.9 cents for the year ending September 30, 2024, despite a challenging trading environment marked by high inflation in food, fuel, and energy. The company's turnover rose 4% to R152.3 billion, while earnings before interest, tax, depreciation, and amortization increased by 13.9%. However, Spar will not issue dividends for the second consecutive year as it focuses on a turnaround strategy in the competitive South African market, disappointing shareholders who received substantial dividends in previous years. The decision to withhold dividends led to a more than 3% drop in the company’s share price following the announcement. The group has sold its loss-making Polish operations and is optimistic about easing inflationary pressures in some areas. CEO Angelo Swartz noted that South Africa's economic outlook appears more positive compared to other regions.