Spar (SPP) 1H22 Results Snapshot

Diluted HEPS 641cps (+3.7% y-y).
Turnover growth +5.2% y-y, supported by strong growth in SA (+7.7% y-y, aided by low liquor base) and Ireland (+8.3% y-y).
GPM increased from 11.8% in 1H21 to 11.9% in 1H22. Improvements in all divisions except SA, which dropped by 20bps.
Expense to sales ratio increased from 11.1% to 11.3% with expense growth of 7.2% y-y. High growth in Ireland due to labour and energy costs.
Operating margin stable at 2.7%.
Profits in foreign businesses are under pressure due to increased labour and energy costs.
Dividend per share 175cps (1H21: 280cps), following the change in dividend policy for the next two years.
Capex of R752m and capex to sales ratio at 1.1% (1H21: 1.0%).
Gross debt dropped from R7.5bn to R6.7bn; net cash reduce from R2.1bn net overdraft to R2.7bn net overdraft.