BWG Group sales reach €1.2 billion
16 November 2015 | 0
At a glance: Annual results – BWG Group
- BWG Group continues to perform on plan with sales of €1.2 billion in 2015, showing euro-denominated growth of 6.5% over the full prior year. This was positively impacted by the recognition of the Londis business for three months of the year.
- The comparable turnover growth measure would be an increase of 2.6%, which is a very satisfying result in light of continuing deflation in foodstuffs measured at (2.1%).
- Profit after tax was negatively impacted by once-off, non-operational costs relating to the acquisition and integration of the Londis wholesale business.
- Significant future synergies have been identified and the inclusion of the Londis retailers into BWG’s operating infrastructure is well on track. This transaction increased BWG’s overall store footprint in convenience and forecourt stores by 145 stores throughout Ireland.
- The new Kilcarbery chilled facility was commissioned as planned in May 2015. Volumes through the facility are steadily growing and further productivity gains are anticipated as the product range through this facility increases.
Spar South Africa (SSA), which is an 80% shareholder in BWG, has revealed its annual results for the 12 months ended September 2015. The figures show its overall turnover and operating profit grew by 34.5% and 23% respectively.
Within this, the BWG Group grew its store footprint in Ireland and the South West of England from 1, 151 to 1,332; of which 145 are attributable to the acquisition of ADM Londis plc convenience chain.
Commenting on SAA’s performance, CEO Graham O’Connor, said: “The 2015 financial year was a milestone for Spar, being our first full year of operating in a global context. While our performance was supported by steady year-on-year growth from our existing store base, our acquisition of BWG Group in Ireland represented a fundamental shift. We achieved an overall turnover increase of 34.5% with operating profit rising 23%. On a normalised basis, our headline earnings per share grew 20.5% and we increased our dividend per share by 17%. This pleasing performance belies the ongoing pressure on consumer spending in South Africa. The BWG Group, whose results were consolidated for the full 12-month period, achieved 6.5% euro-denominated growth, or comparable turnover growth of 2.6%, excluding the acquisition of the Londis business.
“Looking forward, we expect the trading environment in Southern Africa to remain challenging, but we believe that Spar’s brands are well positioned to continue serving our diverse customers. This is balanced by improving prospects in Ireland where the economic recovery is set to continue,” O’Connor said.
He added that BWG’s priorities for the year ahead include completing the full integration of Londis retailers to unlock the inherent distribution efficiencies and synergies.