Spar benefits from rand weakness. Positive growth in Ireland and a weaker rand helped offset continued weakness

at the group's Swiss operations.

The weakness of the rand this year has provided a fillip to Spar, boosting its

foreign currency earnings. While the retail environment remains tough in South

Africa, Spar's operations in Ireland have done well and the rand's

depreciation has flattered it even more.

Spar's Southern African operations grew turnover by 6.7% to 68.8 rand billion,

boosted by the inclusion of pharmaceutical wholesaler S Buys. Excluding S

Buys, the comparable business increased turnover by 5.3%. It credits strong

liquor turnover growth of 13% and a 7.5% increase at its building materials

business for the improvement, despite weakness in the building sector. While

food and liquor growth came in at 5%, Spar says this needs to be viewed

against internal food inflation of 1.4%.

Irish business BWG Group reported euro-denominated turnover growth of 4.2% to

"1.5 billion, with comparable growth of 2.8%. Rand weakness in the second half

of the year resulted in a 9.6% rise in rand turnover to 22.5 rand billion. It said

extreme weather in March and the above average warm summer resulted in

consumers buying larger quantities of food and beverages.

Spar Switzerland reported a 5.8% decline in turnover to 9.8 rand billion but

operating profit increased by 80.6% to 124.6 rand million. Spar said low economic

growth in the retail market were behind the lower turnover, with consumers

continuing to cross into the European Union to do their shopping. Spar said it

would maintain its focus on driving strategic initiatives it had identified to

improve turnover in Switzerland. It's already closed a number of unprofitable

corporate retail stores.

Overall revenue rose 6% to 103 rand billion in the year to end September and

operating profit grew by 7.9% to 2.78 rand billion. Higher finance costs including

foreign exchange losses left basic earnings per share 0.4% up at 948.9c, while

headline earnings per share were 1.4% higher at 965.7c. It's raised its

dividend by 8% to 729c per share.

Against the backdrop of subdued consumer and business confidence in Southern

Africa, the trading environment is expected to remain largely unchanged in the

medium term," Spar said. "The Irish business outlook, still influenced by

Brexit uncertainties, remains positively cautious in both territories where

they operate."

Its shares closed 1.2% up at 177.33 rand yesterday.