SPAR Group has reported a significant loss of over R5 billion for the financial year ended 26 September, driven primarily by the sale and strategic exit of its Swiss and English operations, despite encouraging performance in its South African business.
SPAR posted a profit of R1.1 billion from continuing operations, reflecting resilience in its core markets. However, discontinued operations—including its Swiss and English businesses—recorded a loss of R6.1 billion, resulting in a sharp overall decline. The group’s income statement shows a swing from R158 million profit in FY24 to a R5.1 billion loss, with earnings per share dropping from 182.7 cents to a loss of 2,507 cents. No dividend was declared for the period.
During the year, SPAR finalized its European divestments, including the sale of SPAR Switzerland for CHF 46.5 million (approximately R1.03 billion) in September. The group may receive additional earn-out payments of up to CHF 30 million (R660 million) if EBITDA targets are met by 2027. However, the transaction resulted in a cash outflow of CHF 31 million (R683 million), including CHF 11.5 million (R250 million) paid to the Swiss Competition Commission.
Earlier, SPAR exited its Polish business for R185 million, but incurred R2.7 billion in recapitalization costs for the unit. The group also recognized impairments on goodwill and right-of-use assets in Southern Africa, as well as charges related to Switzerland and AWG, aligning asset values with cash-generating potential and market conditions. SPAR stated these actions were deliberate steps to create a clearer earnings base, a more representative balance sheet, and improved capital structure visibility.
Despite these challenges, net debt decreased to R5.4 billion from R9.1 billion in FY24, largely due to the European exits.
In contrast to international setbacks, Southern Africa delivered improved results, despite ongoing pressure on consumer disposable income. Key drivers included:
- Better wholesale execution and enhanced retailer support programs
- Lower fuel-related logistics costs, improving operational stability
- Merchandise revenue growth of 2.9% in H2 FY2025, lifting full-year revenue by 2.3%
- Groceries and Liquor sales up 1.9% year-on-year
- Build it revenue up 2.4% year-on-year
- SPAR Health revenue surged 13.2%, driven by Scriptwise and wholesale channels
Additionally, Pet Storey acquired Pet Masters Group and launched its brand in September 2025. By November, all 12 Pet Masters stores had been converted, with strong interest and a robust pipeline for further expansion.
