Super Group posts 91c loss a share

15th September 2020 By: Marleny Arnoldi - Creamer Media Online Writer

Super Group posts 91c loss a share

Super Group CEO Peter Mountford

Transport logistics and mobility company Super Group says the company’s trading in the year ended June 30 was significantly impacted on by lockdown restrictions applied in Australia, Germany, Spain, South Africa and the UK.

CEO Peter Mountford says the impact of Covid-19 on revenue was about R5.2-billion, R932-million on profit before tax and R613-million on earnings.

The company’s revenue decreased by 8.7% year-on-year to R34.6-billion, which was partly owing to tough trading conditions as a result of Covid-19, but also existing trading condition issues.

Super Group’s operating profit decreased by 41% in the year under review to R1.6-billion, compared with an operating profit of R2.7-billion reported in the year ended June 30, 2019.

The proportion of Super Group’s revenue and operating profit derived from its non-South African businesses were 46% and 43%, respectively.

The company reports that earnings a share decreased by 125% year-on-year to a loss of 91.4c apiece, compared with earnings a share of 360c apiece reported in the prior year.

Super Group made impairments against the carrying values of certain goodwill, intangible assets and properties, mainly against its Supply Chain Europe business of R600-million, Dealerships South Africa of R183-million and Supply Chain Africa business of R111-million.

Despite the tough trading conditions, Super Group generated 37% more cash this financial year, compared with the prior year, at R4.3-billion.

“The extraordinary pressures on the South African economy, brought on by the devastating impact of the Covid-19 pandemic across all industries, the restart of load-shedding and high unemployment rates make for a challenging outlook.

“Nevertheless, we expect a recovery in Supply Chain Africa's Industrial and Consumer businesses. Supply Chain Europe’s businesses are starting to see the benefits of the efforts to streamline the operations and should perform more strongly next year,” Mountford explains.

He adds that high levels of fleet extensions in the past two quarters and growing consumer interest levels position the company’s SF Fleet business well for next year.

The forthcoming year should be one of recovery provided there are no further pandemic-related lockdowns, notes Mountford.

Mountford indicated that, during July and August, the company’s businesses were operating on average at between 80% to 90% of pre-Covid-19 activity levels.

Super Group remains committed to its strategy of being an innovative, integrated mobility solutions company to ensure growth over the long term.