Spar First-Half Profit Rises 12% as Liquor Chain Expands

Spar Group Ltd. (SPP), a South African food and liquor retailer, said first-half profit climbed 12 percent as higher prices countered slower consumer spending.

Net income in the six months through March rose to 589.2 million rand ($64 million) from 523.8 million rand a year earlier, the Pinetown-based company said in statement today. Sales increased 9.5 percent to 24 billion rand. The company declared an interim dividend of 1.79 rand a share, 16 percent more than a year earlier.

Tops, Spar’s liquor unit, “continued to be the stand-out performer,” the company said. Spar added 25 Tops stores to bring the chain’s total to 561 outlets.

The central bank has kept the benchmark repurchase rate at 5 percent since a surprise cut in July, concerned that a weaker rand and rising gasoline prices will push inflation above its 3 percent to 6 percent target.

To contact the reporter on this story: Janice Kew in Johannesburg at jkew4@bloomberg.net

To contact the editor responsible for this story: Celeste Perri at cperri@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.