Spar Group Limited · JSE:SPP
Spar — The SPAR Group — H1 FY2026 Earnings Presentation
58 slides from Spar's earnings presentation, Jun 10, 2026
Slide 1: Interim Results H1 FY2026
Interim Results H1 FY2026 For the 26 weeks ended 27 March 2026
Slide 2: Overview of the period
Overview of the period Reeza Isaacs Group Chief Executive Officer
Slide 3: Reflecting on an eventful past few years
Reflecting on an eventful past few years FY22 FY23 FY24 FY25 Continued portfolio Competitive intensity simplification - AWG sale - European increases Switzerland exit portfolio review complete Post-pandemic KZN DC SAP headwinds disruption Poland exit Debt restructure SAP implementation International
Slide 4: H1 2026 | A tough start to the year
H1 2026 | A tough start to the year A candid view of the half The numbers we must address Positives in the period Ireland +3% OP Margin Topline growth delivered despite tougher macro & competitive pressure. A mainstay of the portfolio. –56% Working Capital & Liquidity Well managed Working capital di
Slide 5: Key drivers of H1 2026 performance
Key drivers of H1 2026 performance
Slide 6: Issue 1 | KwaZulu-Natal | R123m operating profit impact
Issue 1 | KwaZulu-Natal | R123m operating profit impact One of the Group's most critical near-term execution priorities What went wrong What was the impact What have we done Topline was driven hard, but margin Revenue growth not converting to profit New leadership in place discipline was weak • H1 2
Slide 7: Issue 2 | Black Friday | Impact of R212m in the period
Issue 2 | Black Friday | Impact of R212m^ in the period We optimised marketing for supplier income rather than shopper footfall; we did not get the ROI. What went wrong What was the impact What have we done Black Friday – spend without a return Shopper footfall did not translate into New CMO appoint
Slide 8: SA grocery & Liquor loyalty stabilised; below 80% goal
SA grocery & Liquor loyalty* stabilised; but below 80% goal - work still to do Average Loyalty across all DC regions excluding KwaZulu Natal: 77.90% Retailer loyalty was impacted by SAP rollout in 2022… Efforts to address have stabilised Loyalty over the last 6 months 2020-2025 Oct 2025 – Apr 2026 T
Slide 9: Creating a stronger platform for growth
Creating a stronger platform for growth
Slide 10: Resetting on two fronts - retailer and wholesale
Resetting on two fronts - retailer and wholesale Unleashing the power of independent retail Independent, Efficient, best-in- entrepreneurial class wholesale retailers Scale, supply chain and margin discipline Local ownership, agility and customer connection A winning voluntary trade model “We are be
Slide 11: Restoring retailer profitability. Fixing the fundamentals.
Restoring retailer profitability. Fixing the fundamentals.
Slide 12: Retail focus areas | Removing friction. Enabling growth
Retail focus areas | Removing friction. Enabling growth 1 2 3 4 5 Empowering Building a future- Stronger retailers to Brand & marketing Repositioning fit retail procurement, improve effectiveness SPAR2U technology sharper pricing profitability and platform manage costs Merchandising Marketing eComme
Slide 13: Strengthening wholesale & distribution
Strengthening wholesale & distribution “Unleashing the power of independent retail”
Slide 14: Wholesaler focus areas | Fixing the foundations, restoring margins
Wholesaler focus areas | Fixing the foundations, restoring margins Building a better, more efficient wholesale and distribution capability. Margin Improving Growth Optimisation Efficiency Initiatives Centre led merchandise Cost optimisation Accelerating growth through formats, adjacencies and partne
Slide 15: Tracking the turnaround
Tracking the turnaround The measurable goals behind each workstream - what we are steering toward Workstream Metric & current status Target / milestone Gross & operating margin + wholesale revenue Margin & growth growth vs inflation + new-format rollout Margin recovery; scale new formats 1 Margin re
Slide 16: Financial review
Financial review Megan Pydigadu Group Chief Financial Officer
Slide 17: Operating environment
Operating environment Navigating trading conditions across our territories South Africa • Food inflation softened to 3.4% in Mar 2026 (Sep 2025: 4.4%), signs of acceleration due to high transport costs • Shifting consumer habits towards discount and online channels • Informal sector (spaza shops) re
Slide 18: Group salient features
Group salient features On a comparable basis, continuing operations for 26 weeks R730.7m 199.9cps -R2.0bn R67.5bn Operating profit Group turnover HEPS Free cash flow Margin 1.1% +2.1% | H1 FY25 R66.1bn -55.6% | FY25 450.1cps (H1 FY25: +R693.6m) (H1 FY25: R1 401.1m; Margin 2.1%) 11.7% R7.3bn 2.73x RO
Slide 19: Group income statement | continuing comparable
Group income statement | continuing comparable Margins resilient on muted topline; operating profit pressured by KZN, Black Friday and clean-ups Turnover growth was muted with highly competitive trading R'm H1 2026 H1 2025 % change conditions in both Southern Africa and Ireland. The South African op
Slide 20: Southern Africa | G&L sales performance
Southern Africa | G&L sales performance Modest sales growth below inflation, with retailer loyalty stable +1.1% +1.1% +2.6% 78.5% Wholesale revenue growth Retail sales growth Internal selling price inflation Retailer loyalty H1 2025: +1.1% Official food CPI: 3.4% FY25: 78.9% Perishables revenue +2.9
Slide 21: Southern Africa | G&L revenue trend
Southern Africa | G&L revenue trend Promotion-led volume gave way to a genuine margin recovery by February into March H1 2026: YoY Growth % by Period Oct - Nov | Black Friday period • Short-lived lift from the Black Friday campaign over a two-week campaign period 2.3% • Marketing investment drove si
Slide 22: Build it | Financial highlights
Build it | Financial highlights Resilient organic retail growth of 6.1% - micro credit tailwind; regional outperformance & network rationalisation ongoing R5.2bn +1.5% +6.1% 68.1% Wholesale revenue Retail sales growth Organic retail sales growth Retailer loyalty +1.3% H1 2025: +4.1% H1 2025: +5.1% H
Slide 23: SPAR Health | Financial highlights
SPAR Health | Financial highlights Continued sales growth momentum - profitability behind, driven by deliberate investment cycle 137 R1.2bn Stores 65.5% Total sales revenue +12.2% Loyalty Scriptwise +26.1% (H1 2025: 118) (H1 2025: 58.4%) Key performance drivers & context Aptekor (WC Pharmacy Pharmac
Slide 24: Ireland (BWG) | Financial highlights
Ireland (BWG) | Financial highlights Solid result against challenging Irish consumer backdrop Sales €856m (+2.2%) €117.4m • Underlying growth across the business €855.7m Gross profit Sales +4.1% • Continuing strong growth in Foodservice +2.2% GP% 13.7% (H1 2025:13.5%) GP margin 13.7% (+20bps) • Impr
Slide 25: Operating profit analysis
Operating profit analysis Operating profit decline driven primarily by 3 factors – KZN, Black Friday and balance sheet clean ups Current period anomalies Legacy matters 1 401 -212 -123 6 1 006 -38 -28 -143 R'm -73 27 731 704 -86 March 2025 Black Friday KZN Current year Build it Other Operating profi
Slide 26: HEPS & EPS reconciliation
HEPS & EPS reconciliation HEPS on comparable basis down 55.6% (R'm) H1 2026 H1 2025 % change Total continuing operations* (cents per share) 500'0 Profit for the year attributable to equity holders of 450.1 the company 291.7 799.5 -63.5% 450'0 415.1 Adjusted for: 93.3 67.3 400'0 Loss on sale of PPE a
Slide 27: Group statement of financial position
Group statement of financial position Continued optimisation of the balance sheet, enhancing financial quality and resilience (R'm) H1 2026 FY 2025 ASSETS 44 848.2 46 221.4 Non-current assets 19 428.4 19 548.0 Property, plant and equipment 4 957.2 5 071.7 Right of use assets 2 654.4 2 644.9 Goodwill
Slide 28: Debt overview
Debt overview Debt and leverage per entity March 2026 March 2025 Southern Net debt (R'm) Group Ireland Group Southern Africa Ireland Switzerland Africa Gross Debt 8 408.2 5 477.1 2 931.1 10 858.3 4 604.5 3 059.1 3 194.7 10 001 9 748 Cash 1 069.5 880.1 189.4 1 147.1 822.0 204.9 120.2 9 115 Net debt 7
Slide 29: Group working capital
Group working capital* Continued focus on working capital management, underpinned strong balance sheet 30 000 2 000 1 500 20 000 16 264 15 442 15 216 16 107 15 975 1 000 10 000 500 5 054 4 899 4 739 4 653 4 617 R'm - 31 - ( 49) ( 268) ( 360) ( 500) (10 000) (1 000) (20 391) (20 316) (20 562) (20 000
Slide 30: G&L debtors' book
G&L debtors’ book Overdues signal retailer distress Mitigants & actions Item H1 2026 H1 2025 Trend Credit committee oversight intensified Total debtor book R8.9bn R8.7bn + Growth Early warning indicators in place Monitoring of high-risk stores Retail operations teams assisting the highest-risk store
Slide 31: Continuing operations cashflows for the period
Continuing operations cashflows for the period Group cashflows is distorted by the inclusion of discontinued operations. Below is a FCF view of continuing operations and net cashflow post the outflows as a result of the disposal of offshore operations Southern Africa Ireland Total continuing operati
Slide 32: Cash flow generation, including discontinued operations
Cash flow generation, including discontinued operations Cash has been absorbed into operations mainly working capital for H1 11543 542 2 742 -1 840 R'm 1 237 -369 -179 -778 840 -279 -1 231 136 585 -397 Opening H1 2025cash Cash Net working Net capital Net acquisitions/ Lease Taxation Cash available P
Slide 33: Capital expenditure
Capital expenditure Disciplined phasing of capex spend | Capex target of - c.1% of revenue remains in place Group • H1 spend on strategic initiatives related to SAP and Omni initiatives 43% 47% R373m • Expansion capex - store acquisition spend of R118m • Strategic capex in H2 largely relates to SAP
Slide 34: Capital allocation | Our framework
Capital allocation | Our framework Capital is being preserved and directed at recovery - not distributed before the work is done. Our capital hierarchy: 1 Operational investment & capex 2 Debt reduction & covenant headroom 3 Shareholder returns when sustainable Dividends Share Buybacks Rights Issue
Slide 35: Portfolio optimisation complete | UK disposal
Portfolio optimisation complete | UK disposal Final milestone in portfolio simplification - AWG (UK) exit completed APA signed with AF Blakemore - Saltash Depot & 71 Stores. Stores to transfer on phased basis. Transaction Timeline APA signed with AF Blakemore 4 May 2026 Saltash Depot & 71 stores Cor
Slide 36: Fuel cost risk & impact | South Africa
Fuel cost risk & impact | South Africa Fuel is 15 - 18% of warehouse & distribution costs — the single largest controllable cost variable in the DC network Macro context Direct cost impact — W&D* fuel spend H1 2026: R18.42 Cost Line H1 2026 H1 2025 Avg Diesel H1 2025: R18.67 (R/liter) Δ -1.34% Total
Slide 37: Fuel cost risk & impact | Mitigation
Fuel cost risk & impact | Mitigation H1 tailwind | H2 headwind sized and mitigated Contractual Surcharge 3PL Renegotiation - Group Operational Efficiency Pass-Through Scale • Route optimisation & load consolidation - litres • SA + Ireland combined consumed down 3.5% in H1 logistics volume leveraged
Slide 38: Macro outlook into H2
Macro outlook into H2 Constrained Macro environment Fuel increases Competitive Interest rate As a result of Middle East Inflation environment hikes expected conflict South Africa Intensifying price competition South Africa SARB increased interest by in SA grocery as chains Successive fuel hikes in H
Slide 39: Cost optimisation | Realignment programme
Cost optimisation | Realignment programme Structural cost reset underway Cost growth above inflation in H1 Realignment programme targets H2 improvement Cost review commenced Approved Group wide cost review commenced Centralised non- trade procurement In progress Non-trade spend centralisation captur
Slide 40: Looking ahead
Looking ahead Reeza Isaacs Group Chief Executive Officer
Slide 41: Focus on accountability and execution
Focus on accountability and execution Six data points across leadership, operations and the portfolio Growth momentum Revenue growth accelerated to +2.1% in Feb–Mar New leadership in place with GP stabilising. The most encouraging trading New Group CEO and Group CFO. New MD: G&L and CMO appointed. C
Slide 42: The case for SPAR
The case for SPAR 2nd largest food retailer* 6 countries Market share 2000+ stores Convenience 38% * 1000+ retailers *AC Nielsen Capital light, working capital neutral #1 Irish voluntary trading group The wholesale model earns before it by store count (~1 068 stores) spends Largest building material
Slide 43: Recognition of our brands and capabilities
Recognition of our brands and capabilities #1 #1 #2 #1 Top Job Contributor Top Private Label Player Community Value Index Industry Awards YES (Youth Employment Advantage Group Kantar Product of the Year 2025 - Juice Service) ESG Awards 2025 Kantar Consumer Survey (2,000+ respondents) Qualité Award S
Slide 44: Now it's about execution
Now it's about execution Behind us The heavy lifting is done, but there’s hard work ahead • Portfolio streamlined - focused on South Africa & Ireland The model is sound • Balance sheet materially strengthened • Leadership team in place • The independent retailer model • Strength of the SPAR brand Th
Slide 45: Thank You
Thank You Q&A IR@spar.co.za www.thespargroup.com/investors JSE: SPP ISIN: ZAE000058517
Slide 46: Important information & disclaimer
Important information & disclaimer Forward-looking statements This presentation contains forward-looking statements based on management's current expectations and projections. Actual results may differ materially. SPAR undertakes no obligation to revise or update these statements. Currency All value
Slide 47: Appendices
cy Appendices
Slide 48: Appendix 1 | Southern Africa income statement
Appendix 1 | Southern Africa income statement Muted topline growth; gross margin erosion and higher costs weighed on underlying operating profit (R'000s) H1 2026 H1 2025 % change Turnover grew marginally on prior year, impacted by softer Income statement dropshipment volumes and weaker case movement
Slide 49: Appendix 2 | Ireland income statement
Appendix 2 | Ireland income statement Q2 sales pressured by macro headwinds; gross margin up 20bps on prior year (EUR'000) H1 2026 H1 2025 % change Revenue ahead of prior year. Ireland started Income statement strongly but February and March were challenging, with severe weather curtailing consumer
Slide 50: Appendix 3 | SPAR Sri Lanka JV
Appendix 3 | SPAR Sri Lanka JV Topline growth up on last year underpinned by independent retailer growth but slower than planned store openings; offset by higher establishment and selling and distribution costs Footfall Items sold +8% +5% (Rs'000) H1 2026 H1 2025 % change Operating profit Revenue -
Slide 51: Appendix 4 | UK income statement - Discontinued
Appendix 4 | UK* income statement - Discontinued Formatting of table and Adverse trading conditions weighed on wholesale and retail sales, resulting in an operating loss of EUR7.4m slide to be checked (EUR'000) H1 2026 H1 2025 % change Operating performance declined year on year: Revenues remained u
Slide 52: Appendix 5 | Build it - Strategic Priorities
Appendix 5 | Build it - Strategic Priorities Store Growth: New Business Forum Build it 2U (App Commerce) Build it Rewards Product Mix (CAT 1&2 vs CAT 3&4) INTERIM RESULTS FY2026 52
Slide 53: Appendix 6 | SPAR Health - Strategic Priorities
Appendix 6 | SPAR Health - Strategic Priorities Building the infrastructure for a high-conviction health and pharmacy growth platform Project 125 - Doubling the Pharmacy Network 47 28 65%+ +27%+ Pharmacies signed Loyalty Wholesale purchases Pharmacies launched up (P125 stores) growth 1 Profitability
Slide 54: Appendix 7 | Pet Storey update
Appendix 7 Pet Storey update Building the platform - Phase 1 of 2 | Pipeline accelerating in H2 PHASE 1 (now): PHASE 2: 1 Brand building, operational foundations, 2 Margin improvement, private label scale, scalable growth sustainable returns Own brand & product Partnerships & growth • Chirp & Chew B
Slide 55: Appendix 8 | Returns on capital and equity
Appendix 8 | Returns on capital and equity Continuing operations | Group ROIC 8.3% | ROCE 11.7% | ROE 7.8% | Ireland outperforming SA Southern Africa Ireland Group ROIC 8.3% and ROCE Group 11.7% - improving trajectory expected in H2. 17.4% 14.1% ROIC 3.7% and ROCE 6.5% 11.7% reflect H1 margin compre
Slide 56: Appendix 9 | Retail KPIs - Southern Africa G&L
Appendix 9 | Retail KPIs - Southern Africa G&L Footfall / Number of transactions Average basket spend at till Combined -2.30% Combined +3.53% Supermarkets Supermarkets +3.40% -2.35% TOPS at SPAR Liquor -2.02% TOPS at SPAR Liquor +4.20% KPIs reflected are based on information shared by our retailers
Slide 57: Appendix 10 | SAP
Appendix 10 | SAP Lessons from KZN applied - every future phase ring-fenced Strategy Finance Go-Live DC Integration Revised H2 FY25 FY2026 FY2027 Reporting risk closed - lower risk, faster payback Real-time data Unified chart of accounts goes live in FY2026 before Readily available DC-level cost dat
Slide 58: Appendix 11 | Ireland (BWG) | Market Position & Brand Portfolio
Appendix 11 | Ireland (BWG) | Market Position & Brand Portfolio The independent convenience and grocery model - a resilient, cash-generative business 1 068 #1 1m+ 38% Irish Voluntary Trading Group Stores across Ireland Shoppers every day Largest convenience market share By store count 2 142 9% 98.5%