South Africa’s SPAR Group reported a drop in full-year profit as higher financing costs and an elevated tax rate put pressure on earnings, according to figures released in its annual results and reported by Reuters. The retailer said its headline earnings per share fell for the 2024 financial year, reflecting persistent economic headwinds across its markets.
The company explained that increased borrowing expenses, driven by South Africa’s elevated interest rate environment, were a major contributor to the decline. The impact of a higher effective tax rate further reduced bottom-line performance, as highlighted by CNBC Africa in its coverage of the results.
Despite the softer earnings, SPAR noted that its core grocery and pharmacy divisions continued to demonstrate resilience supported by stable customer demand. Group Chief Executive Angelo Swartz said the company is intensifying efforts to improve efficiencies and reinforce its financial position. “We are strengthening our balance sheet and prioritising growth in markets where consumer activity remains firm,” he said in the statement.
Analysts observed that SPAR’s results are broadly in line with challenges facing the wider retail sector, where elevated operating costs and constrained household budgets continue to weigh on profitability, according to industry commentary reported by Reuters.
