SPAR strengthens balance sheet, refocuses on Southern Africa and Ireland

The SPAR Group Limited reported a noticeable uplift in sales during the second half of the 51-week period ended September 19, 2025, with 2.8% growth year-on-year, contrasting a slight decline in the first half. The trading environment remained highly competitive, marked by increased promotional activity. Key regional performance showed Ireland's wholesale sales growing by 2.2% in H2 2025 (local currency), Groceries and Liquor by 2.3%, Build it declining by 4.1%, and SPAR Health by 12.1%. Retail revenue for Groceries and Liquor saw a 3.4% increase in H2 2025, Build it a 2.6% increase, and SPAR Health a 9.4% increase.

A significant milestone was the disposal of SPAR Switzerland, concluded on September 8, 2025, which reduced the group’s net debt by approximately 30%. This transaction eliminated SPAR Switzerland-related borrowings, cross-guarantees, covenants, and contingent liabilities, leading to a streamlined funding profile and reduced refinancing risk. The group expects net debt and gearing to continue trending lower, supported by stronger free cash flow and disciplined capital expenditure.

With divestments from Poland and Switzerland complete and the UK business sale progressing, SPAR is refocusing on Southern Africa and Ireland. The board is considering options to return capital to shareholders, including dividends and/or share buybacks, as the pathway to a net debt/EBITDA target of 1.5x in Southern Africa becomes clearer. The audited financial results for the 52-week period ended September 26, 2025, are expected around December 8, 2025.