Spar profit growth drops below 10%

SPAR Group recorded single-digit growth in half-year net profit as rising unemployment‚ household debt and interest rates cut into consumer spending.

Turnover was up 7.6% to R25.6-billion‚ supported by the strong performance of liquor and building materials‚ which both delivered double-digit growth and countered the effect of heightened competition experienced in food retail.

Net profit was up 9.4% to R642.9-million‚ with its interim dividend increasing by 8.9% to 195c. Diluted headline earnings per share were up 9.5% to 348.8c.

"Trading conditions remain tough with ongoing pressure on consumer spending due to rising unemployment‚ increasing household debt and interest rates," the retailer said. – BDlive