Spar Group South Africa profit rises 12% as liquor sales gain
Spar Group Ltd. (SPP), a South African food and liquor retailer, said first-half profit climbed 12 percent as higher prices countered slower consumer spending.
Net income in the six months through March rose to R589.2 million ($64 million) from 523.8 million rand a year earlier, the Pinetown-based company said in statement today. Sales increased 9.5 percent to 24 billion rand. The company declared an interim dividend of R1.79 a share, 16 percent more than a year earlier.
Tops, Spar’s liquor unit, “continued to be the stand-out performer,” the company said. Spar added 25 Tops stores to bring the chain’s total to 561 outlets.
The central bank has kept the benchmark repurchase rate at 5 percent since a surprise cut in July, concerned that a weaker rand and rising gasoline prices will push inflation above its 3 percent to 6 percent target.