Virus holds back SPAR’s Polish acquisition


Virus holds back SPAR’s Polish acquisition

Published Date: 2020-05-18 | Source: Stephen Gunnion | Author: Stephen Gunnion

Virus holds back SPAR’s Polish acquisition

The retailer and wholesaler says its other businesses delivered strong results and it is positive about the prosects for Poland.

SPAR expects to report a decline in first-half earnings after the Covid-pandemic held up the restructuring of Piotr i Pawel, the Polish supermarket chain it bought last November.

In a trading statement, the retailer and wholesaler said the Polish business reported losses for the six months to end-March due to a restructuring and reorganisation of its operations. The process had taken longer than expected and the finalisation of the legal administration of Piotr i Pawel had been impacted by Covid-19 as a result of the suspension of court activity.

Despite the setbacks in Poland, SPAR said it remained positive about the medium to long-term prospects in the region. Excluding the impact of Piotr i Pawel, it said its businesses deliver strong results.

For the period, it said basic earnings per share (EPS) were likely to be 20-30% lower than the 520c it reported for the first half of last year while headline EPS would be down 17-27% from the 523.6c previously reported.

The group expects to release its results on Thursday. Its shares fell 2.6% to R164 on Friday.

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