SPAR reports US$279M loss following European exit despite Southern Africa profit
Retail giant SPAR exits Switzerland and the UK, resulting in significant losses, while operations in Southern Africa continue to make a profit.
NETHERLANDS – Dutch retail group SPAR posted a full-year loss of over US$279 million for the financial year ending 26 September, largely driven by the sale of its Swiss and UK operations.
The company’s Southern African business remained in profit, recording US$64.4 million from ongoing operations, supported by improved wholesale performance and lower logistics expenses.
Discontinued operations in Europe generated a combined loss of US$343.8 million, outweighing the gains from Southern Africa.
SPAR sold its Swiss business for CHF 46.5 million, equivalent to around US$58.0 million, and is eligible for contingent payments of up to CHF 30 million (US$37.3 million) if performance targets are met by 2027.
The European exit also required a cash outflow of CHF 31 million (US$38.5 million), which included a CHF 11.5 million (US$14.3 million) payment to the Swiss competition authority.
Earlier, SPAR withdrew from Poland, selling its operations for approximately US$158 million, despite having committed US$158 million in recapitalisation for that market.
The company recorded impairment charges on assets, including goodwill and lease rights in Southern Africa, as well as remaining European operations, to align asset values with projected cash generation under current market conditions.
Net debt dropped to about US$316 million from US$533 million the previous year, mainly due to proceeds from the European divestments.
SPAR’s overall financial result swung from a modest profit of US$9.2 million in FY24 to a loss of US$298 million in FY25, while earnings per share fell from 182.7 cents to a loss of 2,507 cents, and the company did not declare a dividend.
In Southern Africa, the group achieved revenue growth of 2.3 percent for the year, with a 2.9 percent increase in the second half, aided by retail support programmes and lower fuel-related logistics costs.
The Groceries and Liquor division recorded a 1.9 percent rise in sales, the Build it segment increased by 2.4 percent, and SPAR Health, including its Scriptwise wholesale channel, grew revenue by 13.2 percent.
SPAR’s new Pet Storey brand, launched after acquiring Pet Masters Group, has completed conversion of 12 stores by November, with further expansion planned.
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