R/€ = 15.37Change: -0.05
R/$ = 13.50Change: -0.04
Au 1172.88 $/ozChange: 7.53
Pt 995.00 $/ozChange: 5.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Feb 10, 2014

Demand for African logistics boosts Super Group’s H1 showing

Photo: Bloomberg
Harare|Africa|Environment|Great Wall Motors|Industrial|Mining|Motors|Super Group|Supply Chain South Africa|transport|Africa|Australia|Mauritius|Asset-based Finance Loans|Logistics|Logistics Subsidiary|Mobility|Motors|Net Finance Costs|Services|Motors|Motors|Operations|South Africa
© Reuse this

Despite the “highly competitive” trading environment and “strenuous” economic conditions of last year, transport logistics and mobility group Super Group (SG) has posted across-the-board improvements in its performance for the six months ended December 31, citing “robust” logistics demand in Africa, characterised by an increase in north- and south-bound activity.

The JSE-listed group, which lifted revenue by 31.5% to R7.1-billion for the period, attributed this largely to strong performances by the majority of its logistics subsidiary Supply Chain South Africa.

This, it stated in an interim results statement on Monday, was despite the local transport and logistics industry being impacted by underlying factors such as weak consumer spend, challenges faced by the mining sector as well as above-inflation cost increases across the local industrial sectors.

Earnings per share and headline earnings per share for the period under review increased by 24.9% to 121.9c and 26.7% to 120.7c respectively.

Profit before taxation increased by 20.7% to R592-million, largely the result of the improved operational profitability of the group, while a 25.7% growth in operating profit to R651-million was driven by operational efficiencies generated by a “stringent focus” on cost controls within the operations.

However, as a result of the competitive landscape and resultant margin pressure experienced by Supply Chain South Africa's SG Consumer business and the retracted novated-lease market in Australia, the overall operating profit margin declined to 9.1%.

Further, an increase in net finance costs by 116.7% to R59-million related to the annualisation of several acquisitions, an increase in asset-based finance loans and the interest impact of the acquisitions.

The increase in total assets of 12.9% to R11.9-billion was mainly as a result of capital expenditure of R461-million for vehicle purchases for Supply Chain South Africa businesses SG Freight and Super Rent as well as for the African Logistics operations.

SG’s net debt position on December 31 increased to R241-million.


The majority of Supply Chain South Africa’s businesses delivered a “commendable” performance over the first six months of the year, while subsidiary African Logistics benefitted from improved efficiencies, following the renewal of the fleet and increased cross-border activity.

Improved north- and south-bound activities, as well as additional activity on the Beira-Harare route were experienced.

“The renewed African Logistics' fleet is running at an average capacity of 94%. This, combined with rand weakness over the period, which resulted in a foreign exchange gain of R10.6-million, contributed to a sterling set of results,” the company said.

Meanwhile, dealerships across the group’s portfolio reported good results, reflecting the inclusion of two Great Wall Motors dealerships acquired during the period and a solid performance by the finance and insurance operations.

New vehicle sales increased by 8.2% over the period, which was “well ahead” of market growth, while the group’s services segment, which included corporate functions, Emerald Insurance and the Mauritius operations, performed in line with expectations.


The group said on Monday that, while the outlook for the South African economy was subdued, it believed that there were opportunities to expand its core businesses.

“The domestic medium-term note programme will allow the group to diversify its sources of funding, optimise its borrowing costs and facilitate its growth strategy, both organically and through acquisitions in its core divisions,” SG stated.

Supply Chain South Africa would continue to focus on niche opportunities within the food services, retail and pharmaceutical sectors.

Meanwhile, African Logistics remained “strategically positioned” to profit from any increased activity in sub-Saharan Africa and would continue to investigate new opportunities in the region. 

SG did not declare a dividend for the period.

Edited by: Tracy Hancock
Creamer Media Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other Transport & Logistics News
In 2011, when Ford Motor Company of Southern Africa (FMCSA) introduced its new Ranger bakkie, president and CEO Jeff Nemeth told Engineering News Online that he wanted to secure the number two spot in the South African pickup market, up from the US manufacturer’s...
Volkswagen wants to extract €3-billion ($3.41-billion) in price cuts from its suppliers to help mitigate the costs of an emissions scandal that has rocked the company, German newspaper Handelsblatt reported on Monday. The business daily, citing company sources, said...
Pan-African low-cost airline fastjet’s subsidiary in Kenya has been granted an air service licence (ASL) by the Kenya Civil Aviation Authority (KCAA). The granting of the ASL cleared the way for fastjet Kenya to begin the application process for an air operator...
Latest News
Rural Development and Land Reform Minister Gugile Nkwinti
Agri SA is calling for urgent clarification of the correct wording and interpretation of the governing party’s decision, whereby the 50/50 proposal, which requires farmers to hand over half their land to their workers, has been accepted as African National Congress...
South Africa should not be allowed to create new coal-fired power stations if it is to tackle its carbon emissions and meet the global goal of keeping temperature increases below 2 °C, says South African environmental and antinuclear organisation Earthlife Africa...
Integrated information and communications technology (ICT) systems provider Datacentrix has lifted earnings attributable to shareholders for the six months ended August 31, by 15.4% to R54.5-million and headline earnings per share (HEPS) by 14% to 27.7c, benefitting...
Recent Research Reports
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
This Week's Magazine
Engen Driver Wellness, the mobile health awareness initiative, continues to make a tangible difference to the lives of the country’s bulk truck operators with increased driver participation in voluntary screenings and improved health scores. Now in its fifth year,...
BUSINESS LEADERS PANEL Adam Craker, Ivor Chipkin, Alan Hosking and Allon Raiz at the 6th IQ Business Active Growth conference
At the sixth IQ Business conference held in Sandton last month, a panel of business leaders and academics advocated that business reclaims the initiative to spur growth in South Africa amid fragmented and haphazard political direction. Management consulting firm IQ...
The building industry is an essential component of the South African economy as it contributes about 15% to the gross fixed investment that drives the economy. However, with the country’s economy going through a tough time currently, this, in turn, reflects on the...
The recipients of the 2015 South African National Energy Association (Sanea)/South African National Energy Development Institute Energy (Sanedi) Awards were announced at a ceremony and banquet in Sandton last month. Sanea chairperson Brian Statham named Exxaro CEO...
ASHER BOHBOT EOH’s corporate goals were originally aspirations, but the company is relevant and is making a difference in the territories it operates in
As South African information technology (IT) firm EOH posted another full year of strong growth, CEO Asher Bohbot, known for his frank words, people-centric management style and stoic humanism, attributed the company’s continued South African and African growth to...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96