Spar Group Ltd.

Spar Group is a wholesaler and distributor of goods and services to SPAR and SaveMor supermarkets, Build it building materials outlets, TOPS at SPAR liquor stores and Pharmacy at SPAR pharmacy and healthcare outlets.Co.'s distribution centres provide goods and services to retail stores in South Africa, Swaziland, Botswana, Lesotho, Mozambique, Zimbabwe and Namibia. In addition, SPAR wholesales goods to independent SPAR stores in Zambia and Malawi.
  • Ticker135K
  • ISINZAE000058517
  • ExchangeJohannesburg Stock Exchange
  • SectorFood & Drug Retailers
  • CountrySouth Africa

Analysts

Jiten Bechoo ...
  • Pratish Soni

SPAR | Liquor cheer

SPP delivered a consistent set of results relative to its peer group, with HEPS growing 10% y/y in H1 '20. Higher SA inflation of c.3% was supportive to earnings and ahead of peers (SHP c.1.2%, PIK c.2.2%). SPP has a superior mix of revenue in SA. Liquor and private label (c.10%, c.23% of SA revenue) had c.7% like-for-like y/y volume growth a tight consumer environment. Thus, we continue to believe that SPP will outperform its peer group in future. The lack of an African footprint creates less of a distraction to investors and management. The business convenience business model requires ...

For SPAR GROUP LIMITED, the environment deterioration entails a downgrade to Neutral

SPAR GROUP LIMITED (ZA), a company active in the Food Retailers & Wholesalers industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 4 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date November 15, 2019, the closing price was ZAR 212.75 and its expected value was estimated at ZAR 195.11.

Jiten Bechoo ...
  • Pratish Soni

SPAR | Safe haven

Spar (SPP) continues to show stability with HEPS up 7% y/y in H1 ‘19. The core SA supermarket business had even volume gains due to the consistency of convenience shopping through cycles. Inflation was above peers due to a lower mix of staples in the convenience basket. Ireland's supermarket business exhibits similar traits as SA's supermarket business. The Group's performance limits the threat of the proliferation of discounters and deflationary trends in developed markets. Strong sales growth in SA liquor and hardware, and the acquisition of a wholesaler in Ireland increased top line gr...

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The Bidvest Group Ltd - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments Marketline's The Bidvest Group Ltd Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by The Bidvest Group Ltd since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and in...

Jiten Bechoo ...
  • Pratish Soni

SPAR | Steadily diversifying

Spar Group (SPP) FY '18 results were in line with our expectations with normalised HEPS growth of 9% yoy to 1 063cps. The core SA supermarket business is still underperforming peers on top line growth. With PIK and SHP expanding into the convenience channel, the trading environment is challenging. SPP is keeping inflation low to remain competitive and is enhancing its fresh private label product mix to support margins. Deflation in foreign operations is affecting foreign sales, but volumes remain robust. The weaker ZAR is supportive to foreign earnings. Foreign margins are improving with...

Jiten Bechoo ...
  • Pratish Soni

SPAR | Liquor cheer

SPP delivered a consistent set of results relative to its peer group, with HEPS growing 10% y/y in H1 '20. Higher SA inflation of c.3% was supportive to earnings and ahead of peers (SHP c.1.2%, PIK c.2.2%). SPP has a superior mix of revenue in SA. Liquor and private label (c.10%, c.23% of SA revenue) had c.7% like-for-like y/y volume growth a tight consumer environment. Thus, we continue to believe that SPP will outperform its peer group in future. The lack of an African footprint creates less of a distraction to investors and management. The business convenience business model requires ...

Jiten Bechoo ...
  • Pratish Soni

SPAR | Safe haven

Spar (SPP) continues to show stability with HEPS up 7% y/y in H1 ‘19. The core SA supermarket business had even volume gains due to the consistency of convenience shopping through cycles. Inflation was above peers due to a lower mix of staples in the convenience basket. Ireland's supermarket business exhibits similar traits as SA's supermarket business. The Group's performance limits the threat of the proliferation of discounters and deflationary trends in developed markets. Strong sales growth in SA liquor and hardware, and the acquisition of a wholesaler in Ireland increased top line gr...

Jiten Bechoo ...
  • Pratish Soni

SPAR | Steadily diversifying

Spar Group (SPP) FY '18 results were in line with our expectations with normalised HEPS growth of 9% yoy to 1 063cps. The core SA supermarket business is still underperforming peers on top line growth. With PIK and SHP expanding into the convenience channel, the trading environment is challenging. SPP is keeping inflation low to remain competitive and is enhancing its fresh private label product mix to support margins. Deflation in foreign operations is affecting foreign sales, but volumes remain robust. The weaker ZAR is supportive to foreign earnings. Foreign margins are improving with...

Shamil Ismail

Spar (SPP) - The Weakest Link

Summary SPP’s FY17 results were disappointing and we are concerned about the impact which a protracted low topline growth environment may have on its individual franchisees. Through a series of scenarios, we assess which levels of turnover growth would swing the profitability of a franchise store into an operating loss. We find that franchisees that are geared may be vulnerable to the current low levels of turnover growth, and considering the periodic refurbishment of stores, we think that a substantial portion of the SPP franchisee base may be leveraged. We also note an interesting trend in...

Shamil Ismail

Spar (SPP) - Management meeting notes

Key points from our pre-close period meeting SPP management on 20 September 2017

1 director bought

A director at Spar Group Limited bought 20,762 shares at 176.237ZAR and the significance rating of the trade was 74/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names o...

For SPAR GROUP LIMITED, the environment deterioration entails a downgrade to Neutral

SPAR GROUP LIMITED (ZA), a company active in the Food Retailers & Wholesalers industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 4 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date November 15, 2019, the closing price was ZAR 212.75 and its expected value was estimated at ZAR 195.11.

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