Spur expects massive earnings jump

Spur announced today that it expects its earnings per share (EPS) to increase by 78.0% to 83.0% in its 2023 financial year.

The company is finalising its results for the year ended 30 June 2023 and, as per JSE listing requirements, informed shareholders that it expects its results to differ by at least 20% compared to the previous period.

Spur expects the following changes to its 2023 financial year results compared to 2022:

  • EPS: 78% to 83% increase
  • Diluted EPS: 78% to 83% increase
  • Headline earnings per share (HEPS): 78% to 83% increase
  • Diluted HEPS: 78% to 83% increase

While the company partly attributed this massive earnings boost to increased sales, it reminded shareholders that its 2022 base was lower than usual.

“Shareholders are reminded that the profit for the prior financial year included the one-off income tax charge of R13.996 million and non-deductible interest on tax liabilities of R8.038 million,” the company said.

These charges followed the final resolution of Spur’s dispute with the South African Revenue Service in October 2021 over the treatment of its 2004 to 2009 share incentive scheme. 

In addition, the company told shareholders that it had repurchased 1,499,891 ordinary shares during the 2023 financial year.

In terms of sales, Spur said it achieved a strong trading performance for the 2023 financial year, with franchised restaurant sales increasing by 23.0% compared to the previous financial year.

In the first half of the 2023 financial year, franchised restaurant sales grew by 31.5% compared to H1 2022. 

“Although economic conditions remain challenging in the face of higher inflation and severe pressure on consumer disposable income, the group’s business model continues to demonstrate its resilience,” the company said. 

In the second half of the 2023 financial year, group sales increased by 15.1% compared to H2 2022. 

“In this constrained consumer trading environment, the group accelerated its marketing activity and amplified brand awareness with value-added campaigns, engaging sponsorship activity and outdoor exposure that resulted in an increase in restaurant foot count of 13%,” Spur said. 

“The improved trading performance, together with the high growth achieved by the retail company-owned stores, led to a continued strong recovery in both group revenue and profit.”

The group’s results for the year ended 30 June 2023 are expected to be released on 22 August 2023.