Overview
- The group said headline earnings per share from continuing operations are set to fall about 50–65% in the 26 weeks to late March 2026, with EPS guidance of roughly 174–217 cents versus 434c a year earlier.
- SPAR blamed the decline on margin compression in Southern Africa driven by heavy Black Friday promotions, above‑inflation cost growth and higher debtor impairments that cut operating profit.
- Operational failures at the KwaZulu‑Natal distribution centre, linked to an ERP rollout and capacity planning problems, disrupted retailer orders and forced extraordinary impairments of about R128 million.
- Management says KZN returned to three consecutive profitable months from February to April 2026 after leadership changes and fixes, while Ireland’s BWG arm delivered stronger margins and growth.
- Shares plunged about 15–16% to levels last seen in 2008 after the update, the UK business is being sold to AF Blakemore in staged completions from June to September 2026, and SPAR warns rising fuel and logistics costs keep H2 prospects uncertain.