South Africa’s second biggest grocer by value Spar Group reported higher half-year profit on Wednesday, helped by the first full contribution from a newly acquired company as consumer spending at home remain muted.
Spar, a wholesaler and distributor to independently owned stores of the same name, said headline earnings per share (EPS) rose 22.4% to 455.5 cents in the six months to the end of March.
Headline EPS, that strips our certain one-off and non-trading items, is the main profit gauge inSouth Africa.
Sales jumped 40.7% to R36 billion ($3 billion), helped by the inclusion of newly boughtBWG Group, an Irish retailer.
Last year, Spar paid 55 million euros ($61 million)for an 80% stake in BWG, a food retailer that also operates in southwest England.
Retailers in Africa’s most advanced economy have been struggling in recent years as consumers grapple with high personal debt and unemployment.
“For the remainder of the financial year, continued pressure on consumer spending in South Africa is anticipated with subdued economic growth and a resultant lack of job creation,” Spar said in a statement