THE SPAR GROUP LIMITED - Trading update for the 18 weeks to 31 January 2020

Trading update for the 18 weeks to 31 January 2020

The SPAR Group Limited

(Incorporated in the Republic of South Africa)

Registration number: 1967/001572/06

Share Code: SPP

ISIN: ZAE000058517

(“SPAR” or the “Group”)
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TRADING UPDATE FOR THE 18 WEEKS TO 31 JANUARY 2020
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CHALLENGING START TO THE YEAR

    -   Group sales increased by 5.4% to R39.79 billion
    -   SPAR Southern Africa sales growth of 4.9%
           - Core SPAR business sales increased by 6.1% and like-for-like sales increased 4.6%,
                with internally measured price inflation of 4.2%
           - Liquor sales slowed with growth of 4.5%
           - Build It sales growth declined by 3.4%, reflecting the extreme pressure experienced
                by the building materials’ sector
    -   SPAR Ireland increased turnover by 0.7% (euro-denominated)
    -   SPAR Switzerland turnover down 1.9% (Swiss franc currency terms) reflecting continued
        poor Swiss retail environment


GROUP

The Group increased sales by 5.4% from R37.75 billion to R39.79 billion for the eighteen (18) week
trading period ended 31 January 2020 when compared to the corresponding previous period in
2019.


SPAR SOUTHERN AFRICA

Group sales in Southern Africa increased by 4.9%, which reflected the weaker consumer spend. The
core SPAR business reported sales growth of 6.1%, with same store sales increasing by 4.6%.
Internally measured price inflation of 4.2% reflected the upward movement of prices in a wide range
of grocery and perishable items. The liquor business delivered a somewhat disappointing
performance with growth of 4.5% in an increasingly competitive retail sector. Reflecting the weak
state of the building materials’ market, the Build It business reported a decline of 3.4% in sales
growth.


SPAR IRELAND

The Group’s Irish business again recorded positive growth across all retail brands and wholesale
divisions in a challenging economic environment, impacted by BREXIT consumer concerns. In euro-
currency terms, this business increased turnover by 0.7%, which was assisted by the two recently
acquired wholesale businesses. Combined with a slightly weakened rand this business reported sales
growth of 1.5%.


SPAR SWITZERLAND

The Swiss business continued to reflect the negative local market conditions and turnover declined
by 1.9% in Swiss franc currency terms. Whilst still disappointing, this performance tracks ahead of
the reported Swiss retail market. In rand measured terms this business reported an increase in
turnover of 2.6%. Management remain satisfied that the implemented strategies will continue to
show positive results.


SPAR POLAND

The Group concluded the acquisition of the controlling interest in the Polish retail business, Piotr I
Pawel on 1 October 2019. The trading performance of this business has been in line with
expectations, as the debt restructuring activities continued. These proceedings should soon be
concluded, and management remains very positive about the prospects of this business.

The Group is also pleased to announce that it has signed an agreement confirming its exclusive
status as the sole operator of the SPAR brand in Poland.


INTERIM RESULTS

The financial results for the six months ending 31 March 2020 will be released on SENS on or about
Wednesday, 13 May 2020.


Shareholders are advised that the financial information contained in this announcement has not
been audited, reviewed or reported on by the Group’s auditors.


By order of the Board

Pinetown
11 February 2020

Sponsor:
One Capital

Date: 11-02-2020 03:18:00
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