South African retailer SPAR forecasts a 50-60% drop in first-half headline earnings per share due to margin compression and operational challenges.
SPAR Group expects first-half headline earnings per share (EPS) from continuing operations to fall 60% to 50% year-on-year to 174-217 cents, down from 434 cents. EPS is projected to decline 65% to 55% to 140-180 cents, compared with 399 cents previously.
Revenue from continuing operations rose 2.1% for the 26 weeks ended 27 March 2026, with Southern Africa up 1.7% and Ireland growing 2.2% in euro terms. SPAR Health revenue surged 26.1%, while Build it revenue increased 1.3%. The decline in earnings stems from margin compression, elevated promotional spending, and operational issues in KwaZulu-Natal.
Gross profit margin in Southern Africa fell by 20-40 basis points, driven by Black Friday promotions and logistics disruptions. The group is advancing the sale of its UK business as part of its strategic realignment.