Driven by operational efficiencies, consistent focus on cost controls and new contracts having been secured, JSE-listed transport logistics and mobility company Super Group increased its operating profit for the year ended June 30 by 18.6% to R1.35-billion, the company announced on Monday.
Super Group also reported a 22% increase in revenue to R14.3-billion, up from R11.71-billon previously, mainly as a result of new contracts secured in most of its South African supply chain businesses, a strong performance in its African logistics cluster and increased sales in its dealerships division, the company explained.
Headline earnings a share for the period were up 17% to 249c, while operating cash flow was 39% higher at R2-billion.
The group’s net asset value a share also increased by 18% to R14.37.
“Despite the prevailing difficult economic and trading conditions, Super Group delivered an excellent set of results for the year ended 30 June.
“The growth in earnings is testimony to the group's integrated mobility solutions strategy and has been achieved despite the highly challenging market conditions and inflationary pressures experienced in both Southern Africa and Australasia,” Super Group said in a statement.
The company added that during the year the logistics and transport industry in South Africa had continued to be impacted by high fuel prices, e-tolling in Gauteng, weak consumer spending and significant industrial action across many sectors.
Meanwhile, logistics into Africa remained robust with an increase in South-bound activity.
Super Group noted that trading conditions in the South African economy were expected to remain challenging over the short to medium term.
“Super Group is also anticipating an increase in competitive pricing pressures across all sectors and will continue focusing on driving cost efficiencies throughout the group.
“The weak rand, higher fuel prices, inflationary pressures and high unemployment rates will continue to hamper growth in South Africa,” the company said.
However, despite this, Super Group said it was exploring a number of exciting investment opportunities across the group.
“The board remains of the opinion that Super Group should rather reinvest cash generated in acquisitions or the repurchase of shares. Accordingly, a decision was taken not to declare a dividend for the year ended June 30,” the company concluded.