Spar Group Limited · JSE:SPP
Spar — The SPAR Group — FY2025 Earnings Presentation
44 slides from Spar's earnings presentation, Dec 8, 2025
Slide 1: The SPAR Group Ltd Annual results 2025
The SPAR Group Ltd Annual results 2025 Focused. Partnered. Positioned for the future.
Slide 2: Agenda
Agenda FY2025 – a year of deliberate focus Overview Operational review Financial Strategy and Angelo Swartz Angelo Swartz review outlook Megan Pydigadu Reeza Isaacs Angelo Swartz ANNUAL RESULTS PRESENTATION 2025 2 FOCUSED. PARTNERED. POSITIONED FOR THE FUTURE.
Slide 3: Overview
Overview 2025 was a year of deliberate focus and disciplined execution while navigating a challenging operating environment. 3
Slide 4: Who we are
Who we are Our purpose is to unleash the power of independent retail Trusted, globally market share in recognised brand #2 South Africa 1 000+ independent, entrepreneurial retailers Balanced portfolio across premium, value and emerging retail channels Southern Africa Group Revenue - R132.4 billion (
Slide 5: Our operating environment in 2025
Our operating environment in 2025 Navigating trading conditions across our territories Challenges Opportunities • Food inflation softened to 4.5% in Sep 2025 (Jun 2025: 5.1%), supported by lower fuel prices and improved energy stability • Customer behaviour shifting toward value and online grocery L
Slide 6: Our story in 2025
Our story in 2025 Focused on our core – distribution excellence that empowers independent retail Delivered growth in adjacencies Partnerships with independent retailers remain our greatest assets Stronger momentum across Disciplined cost and capital brands despite tough trading management strengthen
Slide 7: 2025 in numbers
2025 in numbers Building foundations for strategic growth Group turnover 1 Operating profit Cash generated from operations +2.3% to +13.3% to +1.6% to R2 781.6m R132.4bn R5.4bn Margin: 2.1% (2024: R130.3bn) (2024: R2 720.0m; 2.1% margin) (2025: R4.8bn) HEPS 2 Group leverage ratio 3 ROCE 4 -8.9% to 1
Slide 8: 2025 in numbers
2025 in numbers Building foundations for disciplined growth Retailer loyalty^ Sites using SPAR2U solution Sites using Uber Eats solution 78.9% 636 300 (2024: 78.7%) (2025: 525) (2025:0) ^ Adjusted for trading days Rural Hub Investment in Rural Hub Investments in CSI +38% to +15% to 261 jobs R13.8m R
Slide 9: Awards and recognition
Awards and recognition Leading the way Southern Africa • 2025 Advantage Award: No 1 Retailer in Hardware/DIY for Build it • 2025 Advantage Award: No 1 Retailer in Private Label for SPAR • Recognised as Top Contributor at the YES South Africa ESG Awards Ireland • Irish Foodservice Suppliers Alliance
Slide 10: Operational review
Operational review We made bold strategic choices – focusing on our core markets, optimising capital and reaffirming the unique value of SPAR’s independent retail model. 10
Slide 11: Southern Africa
Southern Africa Robust performance, particularly in H2 Wholesale Revenue growth +2.3% R41.2bn R10.1bn R10.3bn +2.9% +1.9% y-o-y +2.4% R44.1bn +13.2% +1.1% R2.0bn R1.8bn FY2024 FY2025 H1 2025 H2 2025 Build it SPAR Health Turnover Distribution centres Stores^ Employees* R97.7 billion 6 2 523 4 657 ^ I
Slide 12: Southern Africa
Southern Africa Wholesale revenue +1.9% with improved growth trajectory in FY2025 H2, +2.9% Grocery retail Liquor retail Omnichannel growth • Retail sales +2.1%; Retail LFL +2.2% • Retail sales +3.8%; Retail LFL +3.4% • Modest top-line growth due to • Continued drive towards a balanced subdued retai
Slide 13: SPAR | TOPS
SPAR | TOPS Personalised Immediate convenience 15,000 SKUs SPAR store in Uber Eats App 5-30 mins delivery On-Demand Delivery Click and Collect 13
Slide 14: Southern Africa: Increasing our share of the wallet
Southern Africa Increasing our share of the wallet ANNUAL RESULTS PRESENTATION 2025 14 FOCUSED. PARTNERED. POSITIONED FOR THE FUTURE.
Slide 15: Refreshed store formats
Southern Africa Refreshed store formats Gourmet SaveMor Opportunity spectrum • Premium retail format with higher basket value and • Complementary format in lower- to mid-income frequency communities, capturing essential basket spend • Margin uplift driven by favourable fresh mix • 61 active stores o
Slide 16: Shopper initiatives
Shopper initiatives “only at SPAR” innovations Increased penetration: Food Stall, Chikka Chicken, Fire&Grill, BeanTree E-Vouchers & SPAR Gift Cards Partnership with Yoyo to enable seamless digital purchases of SPAR gift cards – 1 345 stores onboard GUESTCX – meeting customer expectations Improve the
Slide 17: Southern Africa
Southern Africa Retail sales: +4.3%; Retail LFL: +6.0% 394 Build it stores and 29 store upgrades in FY25 Retail loyalty: 67.9% (FY24: 68.4%) Build it Rewards customer rewards program launched in September 2025 Build it 2U app development continues to progress steadily Focused on inventory, cost cont
Slide 18: Southern Africa
Southern Africa Expanding pharmacies and consumer health offerings, diversifying income and supporting independent retailers Loyalty: 60% from 55% in 2024, Own brand purchases up 37% Pharmacy at SPAR: Wholesaler growth +8.6%; on track for 170 stores by Sept 2026 Strategic relevance of Aptekor acquis
Slide 19: Introducing Pet Storey
Introducing Pet Storey Investing into driving growth of adjacent businesses Pet Storey brand launched in September 2025 Pet Storey offers an accessible and affordable retail experience designed for pet lovers and their pets Demonstrates the potential of extending the SPAR ecosystem into high-growth
Slide 20: ANNUAL RESULTS PRESENTATION 2025 FOCUSED. PARTNERED. POSITIONED FOR THE FUTURE.
ANNUAL RESULTS PRESENTATION 2025 20 FOCUSED. PARTNERED. POSITIONED FOR THE FUTURE.
Slide 21: SPAR Ireland
SPAR Ireland Wholesale The strength of the independent retailer model Revenue growth +0.6% Segment contribution Category contribution 13% 26% 25% 62% 62% 12% Retail Cash & Carry Wholesales VCs Foodservice Tobacco Liquor Groceries Turnover Distribution centres Stores Employees EUR1.7 billion 25 1 161
Slide 22: SPAR Ireland
SPAR Ireland Retail driving growth, food service recovering Brands Retail performance Wholesale performance Food service performance • Strong GP% reflecting • Hospitality channel sales • Strong H2 recovery, driven by improved category mix and significantly up YoY, food inflation and favourable margi
Slide 23: SPAR Sri Lanka
SPAR Sri Lanka Joint venture with Ceylon Biscuits Ltd Footfall Total store number 42: +15% • Added 1 corporate store and 11 independent retailers • Private label growth momentum • SPAR Rewards launched in Items sold November +6% • SPAR2U progressing well BRANDS ANNUAL RESULTS PRESENTATION 2025 FOCUS
Slide 24: Financial review
Financial review Performance is modest but on a clear recovery path. We stabilised and strengthened the Group’s balance sheet, creating a more secure foundation for strategic investments. 24
Slide 25: Group financial highlights
Group financial highlights Group Southern Africa Gross profit* operating Ireland turnover* SA +4.4% profit*^ operating +1.8% Ireland +2.2% +6.8% margin at 3.3% (H2: 2.6%) in constant currency (+8.8% in H2) Net borrowings reduced 40% Substantial ROCE 14.4% SA gearing HEPS* working capital adjusted fo
Slide 26: Group income statement – Full year continuing comparable
Group income statement – Full year continuing comparable Group sales +1.6% on prior year (up 1.8% in constant currency). Despite tough trading conditions, gross margin was resilient and costs were well managed resulting in overall operating profit growth of 2.3%. Net finance costs were up 19% Turnov
Slide 27: Impact of finance costs and taxation on headline earnings
Impact of finance costs and taxation on headline earnings Despite a resilient operating profit performance, HEPS was weighed down by higher interest costs and associated tax R'm Sep-2025 Sep-2024 % change Operating profit 2 781.6 2 719.9 2.3% Net finance expenses up substantially due to the Extraord
Slide 28: Southern Africa
Southern Africa H2 saw better topline growth; GP expansion and cost containment resulted in underlying operating profit growth of 6.8%, OP margin 10 bps ahead of LY Turnover – sales were up on prior year but below inflation due to a subdued retail environment. Most DCs performed (R'000s) Sep-2025 Se
Slide 29: Ireland
Ireland Better H2 sales performance due to timing of Easter and a longer summer; GP margin 20bps up on prior year; operating profit 10 bps below last year, however PBT up on PY Revenue marginally ahead of the prior year, with a better H2 (EUR'000) Sep-2025 Sep-2024 % change performance. Favourable s
Slide 30: Switzerland
Switzerland Included in discontinued ops with sale concluded on 8 September; Improved trading showing a positive trend for H2, however profitability still significantly down on 2024 (CHF'000) Sep-2025 Sep-2024 % change Macro and scale challenges persisted with economic conditions also impacting cons
Slide 31: UK/AWG
UK/AWG* Adverse trading conditions significantly impacted wholesale and retail sales, resulting in an operating loss of EUR6.3m (EUR'000) Sep-2025 Sep-2024 % change Operating performance was well below last year despite Income statement the inclusion of additional stores in the period: • The cost of
Slide 32: Group statement of financial position
Group statement of financial position There has been a substantial improvement in the Groups financial position with net gearing down 40%. Subsequent to the impairments, the balance sheet is also more reflective of the underlying assets and capital structure of the Group (R'm) 26 Sep 2025 30 Sep 202
Slide 33: Impairments recognised in 2025
Impairments recognised in 2025 Substantial impairments proactively processed in the past financial year. Assets and equity reduced by R5.2bn (R’m) Sep-2025 Significant impairments recognised: SPAR Switzerland 3 015.9 AWG 1 589.0 Southern Africa corporate store goodwill and right of use assets 585.5
Slide 34: Net borrowings overview
Net borrowings overview Significantly lower overall group debt level with gearing also substantially reduced. All covenants met with adequate headroom across facilities. Lower gearing and interest rate reductions has reduced average funding costs Sep-2025 Sep-2024 Group1 (R'm) Net Debt 5 400 9 115 S
Slide 35: Cashflows for the period
Cashflows for the period Group cashflow statement distorted by the inclusion of discontinued operations. Below is a FCF view of SA and Ireland (including AWG) and net cashflow post the disposal of offshore operations Total continuing Southern Africa Ireland* operations R'm EUR'm R'm Sep-2025 Sep-202
Slide 36: Capital expenditure forecast for continuing operations
Capital expenditure forecast for continuing operations Total 2025 SA capex below plan and rollover has been catered for in 2026. Investment in 2027 and 2028 remains high due to Ireland expansion and in SA initiatives, including SAP. Total group spend still within the 1% of turnover guidance. Mainten
Slide 37: Reflecting on the reporting period
Reflecting on the reporting period From a finance perspective it has been a year of significant progress Proactively Restructured Sale of non- Elimination of cleaned up the and stabilised core/non- South African balance sheet South African investment cross border to reflect fair funding and thesis o
Slide 38: Strategy and outlook
Strategy and outlook Our foundation is solid: a resilient network of independent retailers, trusted brands and a deeply rooted culture of community. 38
Slide 39: Our strategic goals
Our strategic goals Focusing on the core and unleashing the power of independent retail 30% sales contribution from adjacent segments Our 2030 winning Sustainability: Net aspirations Retailer loyalty > 80% Zero 2050 Healthy ecosystem Debt below R2 billion; SA Retailer profitability leverage ratio be
Slide 40: How we will win
How we will win Resetting time horizon to 3% South African operating profit margin 3,35% 0,40% 0,45% 0,44% 0,30% 1,76% 2025 Incremental Organicgrowth growth DC Improvements Centralisation and Efficiency GP Expansion and Other Income Total Margin 2028 KZN stabilisation Centralisation of AP/dropshipme
Slide 41: Strengthening loyalty
Strengthening loyalty Focus on independent retail enablement What it improves COGS certainty, stable input pricing Enhanced procurement What it improves What it improves Store success & longevity Attractive Predictable earnings & Support rebates platforms aligned behaviours Unleashing the power of W
Slide 42: Rolling out ERP and warehouse management systems
Rolling out ERP* and warehouse management systems Structured design, build, and deployment phases, with continuous improvement embedded • Single SAP platform + new chart of accounts • Rollout DC-by-DC implemented across all DC finance departments • Build it DC planned first (smaller • Immediate data
Slide 43: Our FY2026 priorities
Our FY2026 priorities Creating shared prosperity Retailer enablement ERP and systems Omnichannel and Governance and Margin improvement Capital returns and loyalty transformation digital integration leadership stability What we are doing • Investment in • Lessons from KZN • Focused on cost • Strength
Slide 44: Q&A and Thank You
Q&A and Thank You We welcome your feedback. Please send additional comments or inquiries to IR@spar.co.za 44