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Spur earnings undercooked due to Covid-19 restrictions
Trading Statement for the six months ended 31 December 2020
Shareholders are referred to the sales update released on SENS on 29 January 2021 in which the group advised that total franchised restaurant sales declined by 29.4% to R2.9bn for the six months to 31 December 2020 (“the reporting period”), against the R4.1bn reported for the six months to 31 December 2019 (the “prior comparative period”).
Ongoing Covid-19 pandemic lockdown trading restrictions, although at reducing levels in the first half of the reporting period, compounded by 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 period. As expected, these restrictions, combined with weaker consumer disposable income, were the main contributors to the decline in total franchised restaurant sales.