Diluted HEPS from continuing ops down 54.0% y-y to 199cps with no dividend (1H25: nil).
Turnover growth of 3.6 % y-y, with SA +1.7% y-y and Ireland +3.4% y-y (EUR).
GPM decreased from 10.7% to 10.5%, but Other income margin rose 40bps to 1.7% (marketing income +78% y-y). Total income margin up 30bps to 12.3%.
Expense-to-sales ratio increased from 9.9% to 11.2% with high expense growth of 16.4% y-y.
Operating margin dropped from 2.1% to 1.1%. Spar SA reports loss before tax of R51m, offset by Spar Ireland PBT of R141m.
Capex cut to R369m (1H25: R414m) and capex to sales ratio dropping to 0.5% (1H25: 0.6%).
Gross debt decreased slightly from R7.1bn to R7.0bn, and net overdraft of R361m (1H25: net cash R442m). Group gearing ratio 2.73x, but management earlier said all covenants were met.
UK business disposal by September, expected at breakeven after transaction costs.
Outlook: Cautious of headwinds including rising fuel costs, debtor risks and intensifying competition.
