Spar (SPP) 1H24 – Results Snapshot

Diluted HEPS 465cps (-7.6% y-y) with no dividend (1H23: nil).
Turnover growth +7.9% y-y, with SA +4.8%, Ireland +5.7%
(EUR), and Switzerland -4.6% (CHF).
All regions affected by inflationary cost pressures and high
interest rates.
Poland treated as a discontinued operation, exit by Sep 2024.
GPM stable at 11.9%, but Spar SA GPM down 40bps.
Expense-to-sales ratio increased from 11.7% to 11.9% with
expense growth of 9.6% y-y.
Operating margin dropped from 2.2% to 2.0%.
Finance cost up 27.9% y-y.
Sharp reduction in capex to R642m (1H23: R1.1bn) and capex
to sales ratio drop to 0.8% (1H23: 1.5%).
Gross debt decreased from R8.5bn to R7.8n, and net overdraft
decreased from R4.2bn to R3.3bn.
Lenders agreed to amend to covenants and remain supportive
of the group. SPP is not in breach of any covenants at March.
No plans to seek funding from shareholders.