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Spar posts R6.4bn profit rise

| Retailer trading results

In its results for the year to end-September, retailer Spar said gross profit rose R6.4bn (2014: R4.5bn) while headline earnings per share were 6.9% higher at 835.5 cents per share (2014: 781.8c/share).

In a statement on Wednesday, the group said turnover for the year increased by 34.5% to R73.3bn (2014: R54.5m) while trading profit climbed to R2.3bn (2014: R1.9bn). Profit for the year attributable to ordinary shareholders grew by 5.6% to R1.4bn (2014: R1.3bn).

The board declared a final gross cash dividend of 393c/share.

The company said its focus areas in South Africa for the year ahead include the opening of new stores across all brands, as well as supporting organic growth through further store refurbishments.

It will also continue investing in warehousing and distribution capacity to support growth. Spar said its slow-moving goods warehouse at South Rand is to be completed, and it will begin significant expansions to both of the Cape distribution facilities.

Turning to Ireland, the company said its prospects are looking up as the country's economic recovery and growth are set to continue.

Its Irish business BWG Foods' priorities for the year ahead include completing the full integration of Londis retailers to unlock distribution efficiencies and synergies. Spar said its brands are well positioned to continue benefiting from the improving Irish economy. 

"Spar's business model, which is grounded in our voluntary trading relationship with our network of independent retailers, remains robust," said the company, adding that it is well placed to extend its position in both the South African and Irish markets.

Spar shares traded for R191.62 at 10:30, down 1.92% on the previous closing price.

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