Let’s see how foreign deals play out
Spar results were decent enough but Ireland does not look awesome. The gross margin in Ireland is better than South Africa, but after operating expenses Spar’s left with almost zero operating margin. Ireland is earning euros and has some new deals in place that should improve the situation, while the announced acquisition of Spar Switzerland looks attractive. But I want all these deals to settle down before deciding how great they really are. Deals always carry the risk of overpaying, lack of efficiencies and the like, so let’s give it another year to see how the deals will really work.