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The Citizen
10-06-2025
- Business
- The Citizen
Spar South Africa CEO resigns amid financial challenges to lead McDonald's
Spar South Africa CEO Max Oliva will assume his role as McDonald's South Africa CEO on 1 July 2025. Spar South Africa CEO Max Oliva has resigned from the group, just days after the retailer announced a decline in profits and a R4 billion loss. The retailer said Oliva resigned after 30 years at Spar on Tuesday. 'It has been an honour to serve Spar for the past three decades. While this was not an easy decision, I am confident that the business is in capable hands. Angelo has my full support, and I am excited to see how the team continues to build on the momentum we've created,' he said. Spar SA's next CEO The retailer said Spar Group chief executive officer, Angelo Swartz, will replace Oliva. 'To ensure continuity and maintain the strong momentum Spar South Africa is currently experiencing, Swartz will assume operational leadership of the Southern Africa region.' He has been with Spar for 16 years and was appointed Group CEO in 2023. Before Spar he was at Woolworths. 'I have had the privilege of working closely with Oliva for many years and have immense respect for his leadership and the legacy he leaves. 'Thanks to the strong foundation he has laid, I approach this next phase with confidence that, together with our talented team, we will continue to push forward and deliver on our growth ambitions for Southern Africa,' said Swartz. ALSO READ: Is Spar in trouble? Retailer closes stores as sales decrease Spar SA CEO leaves to lead McDonald's Spar wished Olivia well as the CEO of McDonald's South Africa. He will assume his role on 1 July 2025. The retailer said Oliva's time at Spar helped the Group navigate some of the most challenging periods, including the Covid-19 pandemic, the implementation of SAP, and the broader adoption of new technologies across the business. McDonald's said the appointment comes at a time when the fast-food chain is evolving in a rapidly changing consumer landscape. 'He was selected following a rigorous executive search process aimed at identifying a leader with the vision, discipline, and commercial acumen to guide the business into its next phase of transformation.' R4 billion hit Spar's financial results for the 26 weeks ended 28 March 2025, released last week, showed that it has taken a hit of more than R4 billion after exiting its operations with Spar Switzerland and the Appleby Westward Group (AWG). 'These businesses recorded aggregate post-tax losses of R4.4 billion, including impairments of R4.2 billion.' However, the loss was anticipated as the exit of the operations is part of Spar's strategy aimed at strengthening its balance sheet and recovering margins. ALSO READ: McDonald's SA CEO steps down Profits nosedive The financial results also revealed its operating profits nosedived by 5.7% to R1.35 billion, compared to R1.43 billion during the same period in 2024. Spar has also concluded the disposal of Spar Poland in January 2025. Which was one of the five key focus areas for Spar. The second key focus area that has been achieved is the completion of the Group's debt restructuring in March 2025 and May 2025. It's not all bad; the Group's revenue from continuing operations remained steady at R66.1 billion, while gross profit increased to R7.1 billion. In Southern Africa, wholesale turnover increased by 1.7%. Combined grocery and liquor wholesale revenue rose by 1.1%, while retail revenue increased by 1.9%. NOW READ: Pick n Pay CEO receives the highest salary in retail. Here's how much others get
The South African
09-06-2025
- Sport
- The South African
Orlando Pirates rocked by R84 million snag in dream hire
Orlando Pirates are set to make a huge decision regarding who their next head coach will be. The Buccaneers said goodbye to Jose Riveiro at the end of last season. The Spanish tactician enjoyed an incredible three-year spell at the club in which he won five major trophies. Now, the club are going to begin a new chapter next season under an all-new head coach. READ MORE • Orlando Pirates take stunning Monnapule Saleng decision! READ MORE • Mamelodi Sundowns to dismiss two new signings already! A number of top coaches have been linked with the Buccaneers in recent weeks. The list is headlined by the likes of Pitso Mosimane, Rulani Mokwena and Benni McCarthy. One name who was at the top of the club's list however was German tactician Marco Rose. The former RB Leipzig, Borussia Dortmund, Borussia Mönchengladbach and Red Bull Salzburg coach was tipped to replace Jose Riveiro. New reports however suggest the high-profile coach won't be coming to Orlando Pirates due to his salary demands! 'Bringing Marco Rose to the PSL would require a significant financial commitment, and at this stage, it appears unlikely. All indications are also that he will continue his coaching career in Europe,' an insider told Soccer Laduma . Rose was earning approximately R4.2 million per month in his previous job at RB Leipzig. READ MORE • Orlando Pirates beat Kaizer Chiefs to star PSL signing! Let us know by clicking on the comment tab below this article or by emailing info@ or sending a WhatsApp to 060 011 021 1. You can also follow @ TheSAnews on X and The South African on Facebook for the latest news.
The Citizen
30-05-2025
- Business
- The Citizen
Spar bleeds billions: can the retailer be saved?
Spar said the value of its struggling Swiss and English assets had fallen by R4.2 billion. One of South Africa's biggest grocery retailers, Spar, has been navigating a challenging economic climate for some time. It began with closing stores because consumers were not buying enough food. But now the retailer is taking bigger steps, as it offloads its Spar Switzerland and Appleby Westward Group (AWG) business. 'Shareholders are advised that, following this strategic review, the group is exploring divestment options for Spar Switzerland and AWG,' said the retailer in its SENS announcement on Thursday. That was the beginning of outlining the pain the retailer experienced during the 26 weeks ended 28 March 2025. The retailer stated that the value of its struggling Swiss and English assets had decreased by R4.2 billion. ALSO READ: Is Spar in trouble? Retailer closes stores as sales decrease Tough times for Spar The retailer has warned shareholders that headline earnings per share could decline by 24% and 34%. The warning is released ahead of the publishing of financial results on 4 June 2025. According to the Johannesburg Stock Exchange (JSE) listings requirements, companies are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on will differ by at least 20% from the financial results for the previous corresponding period. Spar said it is in talks with a UK-based business that is well-positioned to develop and grow AWG in South West England. In Switzerland, it has been in talks with parties with extensive business interests in the region and experience in European food retailing and distribution. Spar Swiss and AWG 'Total impairments of approximately R4.2 billion were recognised, including R3 billion in Switzerland and R1.2 billion in AWG. The impairments take into account the fair value of the disposal groups less costs to sell,' said the retailer. Delivering further financial losses, Spar said that the divestment of its Polish business resulted in a loss on disposal of R531 million during the interim period. 'This loss has been recognised in relation to the sale of the Polish operation and takes into account the satisfaction of certain suspensive conditions that were pending at the reporting date but have since been fulfilled, enabling completion of the disposal. 'The fulfilment of these conditions resulted in the final adjustments to the disposal proceeds and associated costs, and there have been no further cash outflows since the disposal became wholly unconditional and was implemented on 31 January 2025.' ALSO READ: Spar Group agrees to end long-term exclusive leases in malls South Africa performance The Sens announcement further details that in southern Africa, the groceries and liquor segment is expected to deliver modest top-line growth on a comparable basis, while operating profit is expected to maintain solid momentum. 'The KwaZulu-Natal distribution centre continued its positive trajectory, reflecting improved profitability. This performance, together with continued focus on cost discipline, translated into modest operating margin expansion on a comparable basis.' Spar said that Ireland delivered a resilient performance in a challenging trading environment, supported by improved gross profit and operating margins in local currency terms, as well as reduced interest expenses driven by lower gearing. 'These gains were partially offset by adverse foreign currency translation effects on consolidation.' Strengthening the balance sheet Spar said it had made substantial progress in strengthening the balance sheet, with the successful refinancing of its South African and Swiss facilities, improving liquidity and reducing funding costs. 'The group anticipates that the successful completion of the aforementioned divestments will materially deleverage and strengthen the balance sheet further.' NOW READ: Here's how much the CEOs of SA's largest retailers are paid
IOL News
29-05-2025
- Business
- IOL News
Spar Group explores sale of Spar Switzerland and Appleby Westward Group
The entrance to a Spar grocery shop. The group has predicted flat to slightly lower earnings growth of its continuing operations for the 26 weeks to March 28, 2025 Image: Africa News Agency (ANA) The Spar Group said Thursday it is exploring the sale of Spar Switzerland and Appleby Westward Group (AWG), the regional distribution business in the southwest of England. The group announced in a trading statement for the 26 weeks ended March 28, 2025, in which flat to lower interim earnings growth was forecasted, that the decision to divest from the businesses had followed a strategic review of its European operations. Consequently, Spar Switzerland and AWG would be classified as discontinued operations in the financial statements. Regarding AWG, Spar's board said they were in talks with a UK-based business regarding AWG, which was well positioned to develop and grow AWG in South West England. In Switzerland, "established parties with business interests in the region and experience in European food retail and distribution," were being engaged with, the board said. 'The group approach has been to engage parties whose interests align with the growth ambitions of the local management teams and retailer partners, and will ensure continuity for employees, suppliers and customers,' Spar's directors said. Interim diluted headline earnings per share (Heps) for Spar Southern Africa and Spar Ireland, excluding the results of Spar Switzerland and AWG, were expected to decline between 0% and 10%, to between 409.4 cents to 454.9 cents, compared with 454.9 cents previously. Diluted Heps for group total operations were expected to decline by between 34% to 24%, to between 275.9 cents to 317.8 cents a share. The board said the Southern Africa groceries and liquor segment delivered modest top-line growth, while operating profit maintained solid momentum. The KwaZulu-Natal distribution centre continued a positive trajectory, with improved profitability. This, with a focus on cost discipline, translated into modest operating margin expansion on a comparable basis. Ireland delivered a resilient performance in a tough trading environment, supported by improved gross profit and operating margins in local currency terms, as well as reduced interest expenses driven by lower gearing. These were partially offset by adverse foreign currency translation effects. Total impairments of about R4.2 billion were recognised, including R3bn in Switzerland and R1.2bn in AWG. The impairments take into account the fair value of the disposal groups, less costs to sell.
The Citizen
26-05-2025
- Business
- The Citizen
Pick n Pay turnaround taking shape as it delivers on first year of recovery plan
Pick n Pay cut its trading loss by R1 billion, but the recovery plan is only in its first year and will take another two years to bear fruit. Pick n Pay has delivered on the first year of its multi-year recovery plan as the retailer's turnaround is taking shape. The group's results for the 53 weeks to 2 March 2025 were announced this morning. They show that Pick n Pay reduced its trading loss by R1 billion, well ahead of forecast, while its like-for-like turnover and customer growth see momentum rebuilding. Announcing the results, CEO Sean Summers said there are no surprises. 'We are meeting the guidance that we have given every six months, making calm and steady progress. You cannot rely on quick wins in our situation, and it will continue to be a journey as we rebuild our Institutional Memory. 'This was an important year for Pick n Pay as we executed the first leg of our operational and financial recovery. We are exactly where we said we would be when presenting the strategy last May, and in some aspects, we are tracking slightly ahead. 'Particularly pleasing is the reduction in our Pick n Pay trading loss by 64% after predicting a 50% reduction.' ALSO READ: How did Pick n Pay do it? From technically insolvent to growing sales in months Recapitalising Pick n Pay The first of its six strategic priorities announced in May last year was to recapitalise the Pick n Pay Group. In this financial year, the group completed its two-step Recapitalisation Plan, raising R12.5 billion through the Pick n Pay Rights Offer (R4.0 billion) and the Boxer JSE listing (R8.5 billion) and restoring the group to a net cash position of R4.2 billion. 'We started to give much-needed attention to our core Pick n Pay supermarkets, and we are pleased to see the early results in reporting positive like-for-like sales growth, notwithstanding the sustained pace of new store openings by our competitors in a restrained and competitive market,' Summers said. Accelerating like-for-like sales The second of its priorities was to accelerate like-for-like sales growth, and the group's turnover for the 53-week period increased by 5.6%. Over the past 18 months, Pick n Pay company-owned supermarkets delivered consistent gains in like-for-like sales growth, improving from -0.5% in the second half of the previous financial year to +3.6% in the second half of the current financial year. 'Our franchisees also showed steady positive recovery, and this positive like-for-like momentum continued in the first eight weeks of the financial year.' Summers also pointed out that the group maintained its focus on keeping selling prices down, recording inflation in Pick n Pay of just 2.1% for the current financial year, sharply down on the previous financial year's 8.2% and well below Statistics SA's food price inflation of 3.9%. ALSO READ: Can Pick n Pay's new look fix their troubles? New store design revealed Resetting Pick n Pay's store estate The third priority was to reset Pick n Pay's store estate and the group made considerable progress either converting to Boxer, franchising or closing those stores where there was no prospect of their returning to profitability, Summers said. 'Importantly, a great deal of focus was put into certain loss-making stores, with some now returning to profitability. We also started opening and committing to new stores and will increasingly refurbish our supermarkets to meet and exceed customer expectations.' Pick n Pay's leadership and people The fourth pillar of the strategy was leadership and people. The ongoing focus on driving operational execution and restoring its Institutional Memory required strong leadership and engaged employees. Summers said key steps have already been taken, including staff training to improve the customer experience, reinstating regional leadership structures and launching a campaign to reignite employee pride and purpose. ALSO READ: Will Boxer listing on the JSE save Pick n Pay? Strengthening partnerships The fifth pillar, strengthening partnerships, was clearly demonstrated in the tie-up with FNB e-Bucks, which already helped to attract customers across all segments. eBucks recently won three major awards, including best financial services loyalty programme in the world. Summer pointed out that the new four-year Tier 1 Springbok rugby sponsorship further amplified brand visibility and national pride. 'We celebrate the extraordinary role that our Springboks and sport play in unifying our country.' He said the retailer remains focused on innovation, adaptability and income diversification through its popular Smart Shopper programme, growing retail media capability and omnichannel platforms, while expanding value-added services revenue. 'More good news was growth of 48.7% in online sales for the 53 weeks, led by asap! and PnP groceries on Mr D. Pick n Pay asap! has grown to 600 locations and franchisee adoption of asap! doubled in two years, with new growth potential unlocked with the launch of the new asap! App. 'The growth in scale now resulted in achieving profitability on a fully costed basis. 'We are very happy with our balance between clicks and bricks,' Summers said. ALSO READ: Boxer shares worth R53 million traded since listing Good news from Pick n Pay Clothing with 11.6% growth Pick n Pay Clothing delivered 11.6% growth from standalone stores in the new financial year and reported market share gains. It opened net 30 company-owned stores during the financial year to bring the total estate to 415 stores. 'When I returned in October 2023 I stated that the recovery of Pick n Pay would be a multi-year process and that things would get worse before they got better. 'It is our sense that we see this unfortunate chapter now bottoming out and we have recalibrated our recovery programme to break even in financial year 2028. 'The journey of restoring Institutional Memory for long-term sustainability and success continues, and we are investing ahead of the recovery, ensuring a strong future-fit business with energy and conviction. Importantly, our customer base is steadily growing as one by one they experience the change. 'It is with a passionate sense of pride and honour that I have confirmed an extension to my contract until May 2028, thereby ensuring leadership continuity in the short term, followed by an orderly succession process,' Summers said.
