The SPAR and Pick n Pay Group reported losses of roughly R4.5 billion in their latest interim results, with the two grocery giants undergoing significant changes.
SPAR was the main reason for the decline, having declared a R4 billion loss in its interim results for the six months ended 28 March 2025.
The group had classified its British and Swiss businesses as discontinued operations, ahead of sales for both companies.
These businesses recorded aggregated post-tax losses of R4.4 billion during the period, which included impairments of R4.2 billion.
On the income statement, the total loss from discontinued operations amounted to R5 billion.
In terms of continuing operations, South Africa’s revenue growth was only 1.7%, while Ireland saw a 0.6% decrease in local currency terms.
The revenue growth in South Africa was underpinned by strong momentum in the lower-income customer segment.
The Build It and SPAR Health also saw growth, supported by strong retailer engagement and category performance.
That said, the over R768 million profit from South Africa and Ireland could only reduce the loss for the period to R4.3 billion.
The group’s total loss attributable to shareholders was R4 billion, even when including gains from exchange rate differences of R300 million.
Since the group’s interim results were released in June, several changes have occurred, including several sales and purchases.
The group was able to sell SPAR Switzerland to Tannenwald Holding for a total equity value of CHF46.5 million (about R1,025 million).
The group will also be entitled to further earn-out payments of up to CHF 30 million (approximately R660 million) due at the end of 2027 based on the actual EBITDA achieved in FY26 and FY27.
However, the sale resulted in a cash outflow of CHF 31 million (R683 million) for the group, including a CHF 11.5 million (R253 million) reserved for a settlement with the Swiss Competition Commission.
The sale of the Swiss business follows closely on the heels of the group’s exit from SPAR Poland at the start of the year.
The group sold SPAR Poland to retailer Specjal for R185 million, but first needed to pay R2.7 billion to recapitalise the business.
The group stated that these sales form part of efforts to realise value and ensure business continuity in these regions.
However, the group has also been on an acquisition drive and has recently bought Aptekor, which should help double its pharmacy network across South Africa.
Pick n Pay’s turnaround
Pick n Pay also declared a loss in the 2025 financial year, even if its results are heading in the right direction.
The company faced challenges in recent years, including its failed Ekuseni strategy, which aimed to reconfigure Pick n Pay’s store footprint across the country.
Former CEO Sean Summers was called in to help save the company, which declared an over R3 billion loss in the 2024 financial year. However, the group is starting to see improvements.
In its interim results for the six months ended August 31, 2025, Pick’n Pay said that it successfully executed multiple strategic initiatives aimed at returning to profit.
This included the group’s headline loss reducing to R439 million, compared to a loss of R804 million in the prior comparable period.
The improved result was driven by a R227 million increase in trading profit, as well as a R500 million positive net funding interest swing, as its recapitalisation was realised in group earnings.
The group introduced a two-step recapitalisation plan in 2024, which saw it raise billions from a rights offer and the IPO of Boxer, its best performer.
The group’s overall turnover increased 4.9%, driven by 13.9% growth from Boxer.
That said, the group admitted that the Pick n Pay Segments Loss for the 2026 Financial Year will be in line with FY2025.
“This is because Pick n Pay continues to invest in critical skills to rebuild retail excellence to facilitate the achievement of the trading profit after lease interest break-even target,” it said in the results.
| Key Group Financial Indicators | 26 weeks to 31 August 2025 (H1 FY26) | 26 weeks to 25 August 2024 (H1 FY25) | % Improvement |
| Turnover | R58.8 billion | R56.1 billion | 4.9 |
| Trading profit | R310 million | R83 million | 273.5 |
| Trading profit margin | 0.5% | 0.1% | — |
| Loss before tax and capital items | (R317 million) | (R1 052 million) | 69.9 |
| Headline loss | (R439 million) | (R803 million) | 45.3 |
| Headline loss per share (HEPS) | (59.77 cents) | (136.60 cents) | 56.2 |
| Basic loss per share (EPS) | (67.53 cents) | (140.83 cents) | 52.0 |
