Spar chief executive Graham O’Connor said South Africa was a tough market with a tough economy.
He added that despite the expectations that political and economic uncertainties would continue, Spar remained committed to driving its key strategic focus areas to support retailer profitability and deliver real business growth.
“These initiatives include ongoing, significant investments in the group’s distribution network, competitive pricing and ensuring a comprehensive product range,” O’Connor said.
Spar has a retail store network of 3768 stores. A final dividend of 435cents a share, resulting in a total annual dividend of 675c a share, represented growth of 1.5percent.
The group reported 5.3percent growth in turnover and said profit before tax had strengthened by only 1percent. Total operating profit for the period was R2.6billion, up 0.2percent from the previous year with subdued performance from its southern Africa stores. In southern Africa, operating profit slid 2.5percent, as tough trading conditions eroded margins and increased costs were associated with stores acquired and subsidised stores.