Spur Corporation: Revenue up 10%, but profit falls

Despite the strain on consumers’ disposable income, people were still able to put money aside for eating out, Spur Corporation chief executive Pierre Van Tonder said yesterday. For the six months to December last year, Spur increased its revenue by 10 percent to R376 million while total restaurant sales rose 12 percent to R2.8 billion in this period. Spur Steak Ranches increased sales by 10 percent while John Dory’s sales rose 19 percent. Pizza and pasta offering restaurants delivered a 26 percent increase in sales. Van Tonder said the group was quite pleased with its revenue increase. Headline earnings declined by 6.1 percent to R72.9 million due to investments made by Spur as a franchisor in its franchisees. The group also bought Western Cape-based Hussar Grill steakhouse for R35m. The chain has six restaurants. Spur shares declined by 6.1 percent to close the session at R30.70 yesterday. – Nompumelelo Magwaza