The SPAR Group Ltd (SGPPY) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and thank you for joining us. I'm approximately 90 days into the CRO and I'm joined by Megan Parigado. He's also 90 days into her role as Group CFO. So this is our first results presentation to the market as the new executive team of SPAR. I want to be direct with you from the outset. The H1 results are disappointing for us, for our people, for our retailers and for our shareholders. The numbers speak for themselves and there is no dressing that up. And this morning I want to cover three things. What went wrong, why, both in this half and the periods before, what we are doing about it and why we remain fundamentally confident in the SPAR model and its future. I will cover the strategic and operational picture and Megan will walk you through the financial detail. And I will close with our forward-looking focus and investment case for SPAR. Reflecting on an eventful past few years, this slide really provides important context for where we are today. SPAR has navigated a genuinely difficult few years, shaped by post-pandemic headwinds, the operational disruption associated with the SAP implementation in KZN, sustained margin pressure, and a complex international footprint. The international businesses, particularly those we have disposed of, placed significant demands on management, time and focus, funding and stress on the balance sheet and cash flows. And at the same time, the group was also executing a large-scale SAP implementation across its operations. While that backdrop has been challenging, meaningful progress has been made, and that needs to be acknowledged. The balance sheet is materially stronger with near-debt reducing from $9.8 billion at its 2022 peak. The portfolio has substantially been simplified. Poland and Switzerland has been exited. An...