SPAR Group Sees EPS Tumble 60% on R128m Impairments and UK Exit
SGRP•SPAR Group expects headline EPS from continuing operations to fall 60% to 174-217c, citing margin compression, R128m impairments and KZN distribution issues. Group revenue rose 2.1%, led by 26.1% SPAR Health growth and 2.2% Irish sales, as UK business disposal advances toward completion.
1. Earnings Forecast and Impairments
SPAR Group expects H1 headline EPS from continuing operations to slump by 60% year-on-year to between 174c and 217c, while EPS including discontinued operations is forecast to fall 65% to 104c-133c. The group recorded extraordinary impairments of approximately R128m versus R71m in the prior period, driven by goodwill, corporate store and assets held for sale impairments.
2. Revenue Growth Across Divisions
Group revenue from continuing operations rose 2.1% for the 26 weeks ended 27 March 2026. Southern Africa sales increased 1.7%, SPAR Health jumped 26.1% and Ireland revenues grew 2.2% in euro terms (3.4% in rand), while the Build it division saw 1.3% growth.
3. KwaZulu-Natal Distribution Challenges
Operations at the KZN distribution centre faced logistical planning issues and a profitability focus that led to service disruptions and higher costs. After leadership changes and strategic adjustments, the centre delivered three consecutive profitable months in February, March and April 2026.
4. UK Disposal Progress
SPAR entered an asset purchase agreement for its UK business, covering 71 company-owned stores, warehouse logistics infrastructure and retailer supply agreements. The staged disposal is expected between June and September 2026, with the UK business classified as a discontinued operation.
