Consumer Staples
SPP’s problematic implementation of its ERP system has significantly impacted the business, causing lost sales of R1.6bn and foregoing trading profit of R720m in FY23. Shamil Ismail is concerned that there may be longer-term consequences from this episode. Channel checks with store owners suggest SPP will be under increased pressure to sharpen its pricing to maintain loyalty levels, which could impact margins. He also sees challenges in offloading the Polish business, additional impairments from recent acquisitions in Ireland, refinancing risks in Mar 24 and has concerns regarding the company's new board.
Edition: 176
- 22 December, 2023