S.African retailer Spar's interim earnings slump 30% (updated)

Spar

14/06/2023 06:38

(Updates to add details in paragraphs 3-5)
       JOHANNESBURG, June 14 (Reuters) - South African food
retailer Spar  SPPJ.J  on Wednesday posted a 30.3% fall in its
half-year earnings, led by inflationary pressures on consumers
and increased operational costs arising from rolling blackouts.
    The company said its headline earnings per share - the main
profit measure of corporates in South Africa - fell from 642.6
cents to 447.9 cents in the six months ended March 31.
    South Africa is facing its worst rolling blackouts on
record, costing Spar retailers over 700 million rand ($37.59
million) on diesel for generators over this period alone.
        In addition, the company has had to endure an
acceleration in food inflation. South Africa's food and
non-alcholic beverages inflation for April sat at 13.9%,
according to government statistics.
        "While conditions are expected to remain tough,
management is taking action to reduce the impact thereof and
will continue to attract consumers through real value house
brand offerings," the company said in a statement.
    The company announced Shirley Zinn as the new deputy
chairperson of its board, effective immediately.
    
    ($1 = 18.6197 rand)

 (Reporting by Tannur Anders; Editing by Muralikumar
Anantharaman and Sherry Jacob-Phillips)
 ((Tannur.Anders@thomsonreuters.com;))