BWG posts robust annual report
Increased turnover, profits and strategic expansion are grounds for "cautious optimism" at BWG Group, which operates Spar, EuroSpar, Londis, XL and more in the Irish market. Parent company Spar South Africa has posted its annual report for the the year to September 2018, which illustrates the financial performance of all of the retail giant's subsidiaries, including BWG, of which it owns an 80% stake.
14 November 2018
The Spar Group, which is the majority owner of Ireland’s BWG Group along with multiple retail operators around the world, has issued its annual results for the year to September 2018. The figures denote a strong showing and optimistic outlook for the Irish arm of the business, which encompasses Spar and EuroSpar, Londis and XL, along with the wholesalers Value Centre and newly-acquired Four Aces.
For the year ended 30 September 2018, BWG’s turnover was up 4.2% to €1.5bn, growth which in turn contributed to a 9.6% increase (in Rand terms) for Spar South Africa.
The report states that all of BWG’s retail brands recorded positive growth: Londis grew by 4.9%, Mace was up by 4.4% and XL saw a 4.5% increase. Meanwhile, the group’s new national distribution centre in Kilcarberry, Dublin, delivered record shipments and reported a 6.9% increase in turnover.
As was the case with the entire FMCG and convenience sector, BWG stores benefitted greatly from the extreme weather conditions in both winter and summer; the increased purchases in these cases were in part what led to the bumper year for stores.
According to the report, operating profits were up by 13% for BWG, totalling R574m (€35m), while PBT was up by 15.5% to R537.9m (approx. €33m).
BWG turnover in Euro terms was up 4.2% to €1.5 billion.
As a result of the positive results, BWG said that as a company it remains “positively cautious” about future prospects, and that it is expected to deliver in line with expectations.