SPUR CORPORATION LIMITED - Sales Update and Trading Statement for the six month ended 31 December 2022
9 February 2023 9:55
Sales Update and Trading Statement for the six month ended 31 December 2022

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


Sales update

The group achieved a strong trading performance for the six months ended 31 December 2022 (“the
period”). Franchised restaurant sales for the period are 31.5% higher than the already improved sales base
achieved in the six months to December 2021 (“previous comparable period”). Sales for the period are 21.1%
higher than the six months from January 2022 to June 2022. This is evidence that the group's strategic
direction is gaining momentum.

South African market conditions remained challenging, with higher inflation and a dramatic increase in the
level of load shedding hours, which directly impacted the supply chain. Despite the mounting pressure on
disposable income, the group continued to attract customers into restaurants with its distinct and
differentiated value proposition. Restaurant brand relevance and appeal, supported by enhanced customer
experience, resulted in increased footfall over the period with a peak in December.

 Restaurant sales                                               Total restaurant sales growth (%)

                                                                      Six months to Dec 2022
                                                                     vs six months to Dec 2021

 Spur                                                                          33.6
 Panarottis                                                                    28.5
 John Dory’s                                                                   19.2
 RocoMamas                                                                     14.6
 Speciality brands*                                                            62.3
 Total South Africa                                                            31.3
 Total International                                                           33.0
 Total group                                                                   31.5
* Speciality brands include The Hussar Grill, Casa Bella and Nikos

Group revenue and profit

The improved trading performance, together with improved performance by the retail company stores, led
to a continued strong recovery in both group revenue and profit.

The earnings growth for the period however includes the effect of the following material item:
Profit for the previous comparable period included a one-off income tax charge of R13.996 million and non-
deductible interest on tax liabilities of R8.038 million. These charges followed the final resolution of the
group’s dispute with the South African Revenue Service (“SARS”) in October 2021 over the treatment of its
2004-2009 share incentive scheme, as detailed in the group’s SENS announcement dated 18 October 2021.
Trading statement

Shareholders are advised that the group is expecting to report earnings per share (“EPS”) and headline EPS
(“HEPS”) for the period as follows:

                     Six months to     Six months     % change          Six months      % change
                     31 December            to        Expected               to        expected on
                          2022             31             on                31         earnings as
                        Expected        December      previously        December       restated **
                                          2021         reported            2021
                                            as        earnings*              as
                                        previously                     restated**^

 EPS (cents)        135.45 – 139.96       70.18       93.0 – 98.0         46.02       194.0 – 204.0

 Diluted EPS        134.95 – 138.44       69.92       93.0 – 98.0         45.85       194.0 – 204.0

 HEPS (cents)       135.29 – 138.80       70.10       93.0 – 98.0         45.94       194.0 – 204.0

 Diluted HEPS       134.79 – 138.28       69.84       93.0 – 98.0         45.77       194.0 – 204.0

* Earnings as reported in the condensed consolidated financial statements of the previous comparable
period published on 24 February 2022.

** As detailed in the group’s audited consolidated financial statements for the year ended 30 June 2022
(“2022 AFS”), certain restatements to previous comparable periods’ financial statements were made. These
included changes in the basis of accounting for marketing fund contributions revenue and revenue earned
on the sales of goods by an outsourced distributor to franchisees in accordance with IFRS 15. Comparative
information for the previous comparable period will be restated, to accord with the accounting treatments
applied in the 2022 AFS.

^ Earnings in the previous comparable period include a charge of R22 million relating to the one-off SARS
dispute described above.

As announced on SENS on 24 November 2022 the company repurchased an aggregate of 2 759 000 ordinary
shares, representing 3% of the issued ordinary share capital of the company, between 17 May 2022 to 23
November 2022. This has resulted in the reduction in the weighted average number of shares in issue from
84.0 million at 31 December 2021 to 81.8 million at 31 December 2022.

The financial information on which this trading statement is based is the responsibility of the directors of
Spur 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 2022 are expected to be released on 24 February 2023.

Cape Town
9 February 2023

Questco Corporate Advisory Proprietary Limited

Date: 09-02-2023 09:55:00
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