Sales update for the six months to 31 December 2020

Spur Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE 000022653
(“Spur Corporation” or “the group”)


SALES UPDATE FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

Continued COVID-19 pandemic lockdown trading restrictions, albeit at reducing
levels in the first half of this reporting period, further exacerbated by the onset of
the second wave of the pandemic and the resultant implementation of revised
Level 3 restrictions in the key trading month of December 2020, curtailed
franchised restaurant sales in the six months to December 2020 (“the period”).

As expected, these restrictions, combined with decreased consumer disposable
income, were the main contributors to total franchised restaurant sales declining
by 29.5% to R2.9 billion (H1 F2020: R4.1 billion) in the period.

Sales for the period from franchised restaurants in South Africa declined by 31.0%
with sales from international restaurants decreasing by 17.3% in Rand terms.
Using a constant exchange rate, international restaurant sales were 17.1% lower.

Pleasingly, a steady post-lockdown recovery in restaurant sales month-on-month
was reported across most of the group’s brands in the first four months of the
financial year to October 2020.

 Franchised restaurant sales
                                                  Total restaurant                Existing
 % change H1 F2021 versus H1 F2020                           sales       restaurant sales*
                                                      (% change)              (% change)
 Spur Steak Ranches                                        (31.0)                  (31.1)
 Pizza and Pasta (Panarottis & Casa
 Bella)                                                    (36.6)                   (37.1)
 John Dory’s Fish Grill Sushi                              (40.1)                   (42.0)
 The Hussar Grill                                          (37.6)                   (37.6)
 RocoMamas                                                 (15.3)                   (17.6)
 Nikos Coalgrill Greek                                     (34.5)                   (34.5)
 Total South African operations                            (31.0)                   (31.5)
 Total international operations                            (17.3)                   (29.0)
 Total group                                               (29.5)                   (31.2)
* “Existing restaurant sales % change” is calculated as the percentage change in sales from only
restaurants that traded for any part of the comparable six-month period ended 31 December
2019.
In South Africa, 17 restaurants were opened and 18 closed during H1 F2021, while
7 restaurants were opened and 4 closed internationally in the same period.

At 31 December 2020, the group’s restaurant base comprised 633 outlets (30 June
2020: 631), including 87 outlets (30 June 2020: 84) operating outside of South
Africa.

Val Nichas, who was appointed CEO of the group on 1 January 2021, commented:

“A steady post-lockdown recovery in restaurant turnover month-on-month was
reported across most of our brands with a strong October 2020 trading month.”

“The reality of a second wave of COVID-19 infections gathering momentum in
South Africa in December 2020 however, necessitated government’s
reintroduction of a national curfew and restrictions on social activity. The imposition
of the adjusted level 3 lockdown regulations in late December impacted restaurant
sales, with the national curfew limiting trading hours. The ban on the sale of alcohol
together with the stringent reduction on seating capacity further reduced restaurant
foot traffic. In addition, the closure of beaches immediately impacted trade in
restaurants located in coastal regions in what is traditionally a high trading month.”

“Restaurant turnover for the month of December 2020 in South Africa declined by
25.8% compared to December 2019, while international turnover decreased by
11.1% in Rand terms (8.3% on a constant exchange rate basis) for the same
period.”

The financial information in this sales update is the responsibility of the directors
of Spur Corporation and has not been reviewed or reported on by the group’s
independent external auditor.

Spur Corporation’s interim results for the six months ended 31 December 2020 are
expected to be released on SENS on 2 March 2021.

Cape Town
29 January 2021


Sponsor
Sasfin Capital
A member of the Sasfin Group

Date: 29-01-2021 10:55:00
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