SPAR group’s earnings dip 7.6% due to high costs and IT issues

Amidst rising costs and IT system challenges, SPAR Group, South Africa's second-largest supermarket retailer, faces a 7.6% drop in half-year earnings. Hindered by finance costs and sluggish turnover growth, the company's profit before tax plunges by 11.2%. Despite a 7.9% rise in turnover, issues in South Africa and other regions hamper performance. With no dividend declared and operating expenses climbing, SPAR navigates through inflationary pressures and IT setbacks, impacting its bottom line.

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Reuters

South Africa's second-biggest supermarket retailer, SPAR Group, reported a 7.6% decline in half-year earnings as cost increases grew more than the management's lower-than-expected turnover growth, while IT system issues hit gross margin.

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