JOHANNESBURG - SPAR says its turnaround is under pressure, with earnings expected to drop by up to 65% amid weak sales, rising costs and operational challenges in Southern Africa.
The retailer expects earnings per share to fall between 55 and 65 percent, with headline earnings likely down 50 to 60 percent for the half-year.
Weak Southern Africa grocery sales, together with margin pressure and rising costs, weighed heavily on performance.
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Higher debtor impairments and once-off charges of around R128-million also dragged earnings lower.
While Ireland and the health division showed some growth, it wasn’t enough to offset broader weaknesses.
SPAR said it is focused on cutting costs and fixing operations, but warns recovery will take time.
The group is expected to release results on 10 June.