SPUR CORPORATION LIMITED - Sales update and trading statement for the six months ended 31 December 2021
14 February 2022 15:00
Sales update and trading statement for the six months ended 31 December 2021

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


       Trading conditions continued to be impacted by various levels of COVID-19 restaurant trading
       restrictions in the six months to 31 December 2021 (“the period”), including a prohibition on sit-down
       trade in July 2021. These challenging conditions were exacerbated by widespread civil unrest in
       specifically KwaZulu-Natal (“KZN”) in the second week of July 2021. This resulted in nine of the
       group’s franchised restaurants being looted and vandalised, with damages totalling R29.5 million.
       Franchised restaurant turnover was adversely impacted by R14.6 million in in July 2021.

       The group continued to respond to the pandemic fuelled market conditions with resilience, focusing
       on everyday value and convenience solutions through takeaways, click and collect services and
       third-party deliveries. In addition, the close collaboration and partnership with the franchise network
       enabled several strategic initiatives to be implemented during the period, including supply chain

       Following the reduction in lockdown levels, and resultant reduction in trading restrictions, conditions
       improved from August to December 2021, with strong trading in the fourth quarter of calendar 2021.
       As a result, the group’s performance continued to recover in the first half of F2022.

       Franchised restaurant sales grew by 28.3% during the period compared to the six months to
       December 2020 (“previous comparable period”), when significant restrictions on sit-down trade were
       in place, and by 18.0% over the preceding six-month period ended 30 June 2021

       While the group reported a pleasing recovery for the period, restaurant turnovers for the period
       remain 9.5%^ behind pre-COVID 19 levels.

       ^ six months ended 31 December 2021 versus six months ended 31 December 2019

Restaurant sales
                                                   Total restaurant sales growth (%)
                                                6 months to Dec         6 months to Dec
                                                2021 vs 6 months     2021 vs 6 months
                                                   to Dec 2020            to June 2021
 Spur                                                  32.6                   17.7
 Panarottis                                            33.4                   17.4
 John Dorys                                            31.5                   14.3
 RocoMamas                                             29.4                   21.9
 Speciality brands*                                    41.8                   20.7
 Total South Africa                                    32.6                   18.1
 Total International                                   (1.8)                  17.7
 Total group                                           28.3                   18.0

* Speciality brands include The Hussar Grill, Casa Bella and Nikos

Group revenue and profit

The franchised network continued to be supported with temporary discounting of franchise and
marketing fees during the July 2021 lock down period and KZN unrest. As trading conditions
improved, the level of support required by franchisees was significantly lower than that required
during the previous comparable period leading to a recovery of growth in group revenue and profit.

Trading statement - Earnings

In accordance with section 3.4(b) of the JSE Listings Requirements, shareholders are advised that
the group is expecting to report earnings per share (EPS) and headline EPS (HEPS) in the following
ranges for the period compared to that of the previous comparable period as follows:

                                           H1 F2022            H1 F2021         % change
 EPS (cents)                             69.35 – 70.95           31.96         117% - 122%
 Diluted EPS (cents)                     69.20 – 70.80           31.89         117% - 122%
 HEPS (cents)                             69.35 - 70.95          31.96         117% - 122%
 Diluted HEPS (cents)                    69.18 – 70.77           31.88         117% - 122%

The consolidation of the net marketing fund surpluses and various once-off items in the period, and
previous comparable periods, impacted total earnings. The most material single item in the period
is a charge against earnings of R22.034 million, previously paid to the South African Revenue
Service, relating to a tax dispute in respect of which judgement was issued against the group by the
Supreme Court of Appeals during the period, as reported on SENS in October 2021.

Comparable EPS and Comparable HEPS** are therefore expected to increase as follows:

                                                    H1 F2022           H1 F2021           % change
          Comparable EPS (cents)                  75.28 – 77.10           36.54         106% - 111%
          Comparable HEPS (cents)                 75.27 – 77.09           36.54         106% - 111%
** EPS and HEPS excluding the impact of the net of the marketing fund surpluses and deficits and
      the various once-off and unusual items referred to above.

      The financial information on which this trading statement is based is the responsibility of the directors
      of Spur Corporation and has not been reviewed or reported on by the group’s independent auditor.

      The group’s results for the six months ended 31 December 2021 are expected to be released on
      24 February 2022.

Cape Town
14 February 2022


Questco Corporate Advisory Proprietary Limited

Date: 14-02-2022 03:00:00
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