Spar Group's Irish profits rise after strong second-half recovery in 2025

South African-headquartered retailer saw decline in full-year group profit

Spar Group's Irish profits rose in 2025 after strong second-half recovery.

International supermarket retailer Spar Group reported a decline in full-year profit on Monday despite improved overall performance, as increased financing costs and a higher effective tax rate ate into earnings.

The retailer said its diluted headline earnings per share, a key profit measure, from continuing operations fell 8.96% to 795.4c for the 52 weeks ended September 2025 from 873.7c a year earlier.

Group revenue rose 1.6% to 132.4bn rand (€6.7bn), with the second half logging a 3.5% increase on stronger grocery and liquor volumes, as well as retailer engagement programmes.

In Ireland, Spar Group owns BWG Foods, whose brands include Eurospar, Mace, Londis, and XL brands. 

Spar Group said its Irish gross profits were up 2.2% retail performance saw a strong second half recovery in 2025, "driven by food inflation and favourable weather". Mace performed well on increased number of new stores and refits while the company also launched its Brevato coffee brand Brevato  in 30 stores. 

The company's annual statement said Irish revenue in 2025 is "marginally ahead of the prior year, with a better H2 performance. Favourable summer weather contributed positively particularly in impulse categories. Inflation contributed to top-line growth coupled with strong performance in the VC channel with the consolidation and optimisation of recent acquisitions. Tobacco sales continue to see a decline.

"Gross margin above prior year with the shift in sales mix to higher margin categories. Protein prices remain at an all time high, which put margins under pressure." It said operating cost growth in Ireland was impacted by minimum wage and other cost inflation, while admin and IT costs are up with investments in IT and security impacting depreciation and other costs. Store acquisitions in both the current year and the prior year impacted cost growth.

Overall, Spar Group's gross operating profit increased by 2.3% to 2.8bn rand (€141,000), supported by solid performances in Southern Africa.

Spar completed the disposal of its Switzerland and Poland businesses over the past two financial years, reducing net debt to 5.4bn rand (€270,000) from 9.1bn rand (€460,000) a year earlier.

However, the group saw higher financing costs linked to legacy Poland debt assumed in South Africa, which resulted in non-deductible interest and a higher effective tax rate.

In Southern Africa, full-year revenue grew by 2.3%, driven by 2.9% growth in revenue from the sale of merchandise in the second half of the financial year.

The groceries and liquor business reported a 1.9% year-on-year increase in sales, helped by improved growth in the latter half when sales rose 2.9%.

"The group enters the 2026 financial year with improved financial resilience, streamlined operations and a clearer set of execution priorities," Spar said in a statement.

Reuters