Profit before income tax, excluding the impact of the GPS provision, increased by 12.8% to R453 million, reflecting the strong underlying performance in demanding trading conditions. Adjusted headline earnings per share on the same basis increased by 8.9% to 370 cents.

The total dividend was increased by 9.0% to 326 cents per share as the board showed its confidence in the group’s cash-generating ability and growth prospects.

Cash generated from operations increased to R489 million, with unrestricted cash and cash equivalents of R494 million at June 2026.

The financial results have been impacted by a provision of R129.5 million for the GPS litigation claim. Profit before income tax, including the provision, decreased by 19.4% to R324 million and headline earnings per share declined by 38.4% to 209 cents.

Total franchise restaurant sales grew by 6.9% to R12.3 billion. Growth was supported by the opening of 42 new restaurants in South Africa and 10 internationally, with the group now trading from 751 restaurants across 14 countries.

The group has maintained strong growth momentum since 2021, with franchise restaurant sales increasing at a compound annual growth rate of 15.2% over the past five years, outperforming the 11.1% growth in the eat-in category reported by Euromonitor.

Group revenue increased by 8.5% to R4.2 billion, driven by revenue growth of 6.0% in the South African franchise segment, 9.2% in the international segment and 11.3% in the manufacturing and distribution division.

Group CEO Val Nichas said Spur Corporation’s proven expertise in casual dining hospitality remains its strategic advantage as competition for market share intensifies in the restaurant sector.

The iconic Spur brand increased local restaurant sales by 5.8% and accounted for 64% of total South African sales. Panarottis produced another strong performance, increasing South African restaurant sales by 16.3% and contributing 11% of local sales. The speciality brand portfolio grew restaurant sales by 8.0% and accounted for 13% of local sales.

International franchised restaurant sales increased by 9.8%. Mauritius has 19 restaurants and represents 20% of the group’s international restaurant sales. Spur leads the international sales contribution at 39%, followed by Panarottis at 36% and RocoMamas at 24%.

Nichas said trading conditions in the weak macroeconomic environment in South Africa were marked by “constrained consumer spending, rising input costs, fuel price hikes, increased competition and strong promotional activity in the burger, pizza and family dining categories.”

The food industry faced additional challenges during the year, she said. “Our first half was affected by foot-and-mouth disease and its impact on beef supply, while the second half was characterised by significantly higher energy, logistics and manufacturing costs due to the Middle East conflict.”

Despite the challenging environment, the group opened 42 new restaurants in South Africa during the year, including 12 Spur, 12 Panarottis and seven Doppio Zero outlets. Fifteen restaurants were closed, bringing the local restaurant footprint to 639.

Ten new restaurants opened in the rest of Africa, increasing the international store network to 112. The Spur brand was reintroduced into Lesotho and Panarottis was launched in Botswana, where it now has three stores. The first Doppio Zero restaurant is being built in Harare.

The group’s nine virtual kitchen (VK) brands are now available through 455 participating restaurants and have maintained their share of the online ordering channel with year-on-year sales growth of 6.4%. Pizza Pug, Ribshack RocoFellas and Just Wingz remain the top-performing brands.

“Franchisees continued to demonstrate their confidence in our brands, investing over R200 million in new restaurants and revamps, while creating more than 2 000 new restaurant jobs. Many franchisees are investing in building innovative kids’ play areas which remain the key attraction for families to dine at Spur,” said Nichas.

The recently opened Burning Arrow Spur in Queenswood, Pretoria has been positioned as the brand’s flagship concept restaurant, setting a new benchmark in family casual dining. Customer response has been “exceptional” according to Nichas, with demand resulting in waiting times of up to two hours in the launch month.

Doppio Zero continued to broaden its appeal through the introduction of new formats. The first Doppio Bistrot opened in a lifestyle centre in Rosebank, Johannesburg, and Doppio Caffè opened in the Protea Hotel Sea Point and Mediclinic Sandton, with a third outlet being built in a corporate office park in Bryanston, Johannesburg. Doppio ROAM, a ‘coffee on the move’ format, opened its first outlet in Centurion this month.

Commenting on the outlook for the new financial year, Nichas said that while trading conditions are expected to remain challenging in the short to medium term, the group is optimistic about long-term growth prospects.

“Our portfolio of well-established restaurant and VK brands, together with more than 2.6 million active loyalty members, positions us strongly to grow market share across categories, regions and countries.”

“We have identified a strong runway for expansion and believe our brands are far from reaching saturation in South Africa or beyond. We will continue to expand our presence in existing markets while entering additional African countries over time,” said Nichas.

The group continues to secure key trading sites and plans to open 50 new restaurants in South Africa and 16 internationally.

Ends

Issued by Tier 1 Investor Relations on behalf of Spur Corporation

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