Super Group increases revenue with marginal profit boost

22nd February 2021 By: Donna Slater - Creamer Media Contributing Editor and Photographer

Reflecting strong sales performances in its supply chain businesses in Europe and its dealerships in the UK, JSE-listed transport logistics and mobility group Super Group’s revenue increased by 5.8% to R20-billion for the six months ended December 31, 2020.

The group’s operating profit increased marginally by 0.5%, to R1.23-billion.

Cost saving initiatives across the majority of Super Group’s businesses also contributed to the higher profit.

Super Group’s revenue and operating profit contributions from its non-South African businesses were 51% and 55%, respectively.

Earnings and headline earnings a share increased by 12.7% to 160.1c, and 4.7% to 159.6c, respectively.

The net asset value a share also marginally increased by 0.8%, from R31.16 as at June 30, 2020, to R31.41 as at December 31, 2020.

Super Group CEO Peter Mountford says the “outstanding performance” was achieved despite the negative impact of continuing Covid-19 lockdowns, including the recent reimplementation of the South African Alert Level 3 lockdown regulations.

He adds that the Australian, German and UK businesses have also been impacted by lockdown restrictions with the most significant impact being experienced in the UK.

Further, during the reporting period, Super Group settled R150-million of its listed senior unsecured notes and listed new senior unsecured notes to the value of R500-million in terms of the company's domestic medium-term note programme.

Net finance costs, excluding finance costs on right-of-use lease liabilities, decreased by 31.4%, to R142.1-million as a result of strong cash generation, reduced working capital and interest rate reductions.

Super Group CFO Colin Brown says the group continues to meet its debt covenants and has sufficient debt facilities to meet its current obligations.

Cash generated from operations increased by 23.5% for the period, to R2.54-billion, while working capital inflow of R347.3-million was recorded compared with a cash inflow of R101.3-million in the prior period.

“Super Group continues to recognise that the Covid-19 pandemic and related lockdowns will result in long-term social-economic shifts and structural changes to the economy and business in general,” says Mountford. As such, he says the group has strategically reviewed all businesses and “right-sized” operations to make sure that business models are relevant and appropriate to current levels of demand.

“The benefits of these initiatives have manifested strongly in both the supply chain in Europe and South African operations as well as dealerships South Africa. “Subject to the easing of Covid-19 lockdown levels, a recovery in trading conditions should result in significantly improved earnings for the year to June 30.”