Super Group, a leading transport logistics and mobility group, reported an excellent set of results for the six months ended 31 December 2018. Peter Mountford, Group CEO, said: “These results are mainly attributable to the ongoing strong performance by the commodities businesses within Supply Chain Africa, as well as Digistics on the back of a number of new Quick Service Restaurant (QSR) contracts. The other businesses performed adequately despite the challenging economic climate and political uncertainties in a number of countries in which the Group operates.”
Group revenue increased by 8.2% to R19.4 billion from R18.0 billion (Dec 2017) primarily due to the significant volume increase in the Supply Chain Africa’s commodities businesses, SG Coal, Legend and African Logistics as well as its QSR logistics business, Digistics. Operating profit increased by 13.0% to R1 298.4 million (Dec 2017: R1 149.2 million), resulting in the Group’s operating profit margin improving from 6.4% to 6.7%.
With the exception of Digistics, the consumer businesses within Supply Chain Africa were adversely impacted by the low growth in the South African economy. Supply Chain Europe’s business was severely impacted by the requirement for the European Original Equipment Manufacturers (OEM’s) to submit all their vehicles to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) from September 2018, as a consequence of the knock-on effect of the historic diesel controversies and the implementation of the Diesel Euro 6 Emissions Standard.
Fleet Africa performed well on the back of increased ad hoc volumes on existing contracts. SG Fleet delivered a disappointing set of results mainly due to a lacklustre novated lease market as a result of the decline in new vehicle sales.
Dealerships SA again outperformed the National Association of Automobile Manufacturers of South Africa (NAAMSA) statistics. The new Mercedes-Benz agency model had a significant impact on sales across South Africa coupled with the overall decline in luxury vehicle sales. Dealerships UK’s Ford and Kia dealerships gained market share despite the unresolved uncertainty around Brexit strategy and overall decline in new vehicle sales in the United Kingdom (UK).
Earnings per share (EPS) and headline earnings per share (HEPS) increased by 15.2% to 176.3 cents (Dec 2017: 152.9 cents) and 12.1% to 173.8 cents (Dec 2017: 155.1 cents), respectively.
Super Group’s net debt position at 31 December 2018 is R3 062.0 million, an increase of R208.1 million, resulting in the net debt to equity ratio being 25.2% compared to 25.1% at 30 June 2018. The net asset value per share increased by 6.9% from R27.05 at 30 June 2018 to R28.91 at 31 December 2018.
“Operating cash flow increased by 5.9% for the period to R1 787.3 million from R1 688.1 million (Dec 2017). Super Group invested just over R1.0 billion in net additions and acquisitions to ensure future growth for the Group;” commented Colin Brown, Group CFO.
Mountford concluded: “Super Group remains resolute in its strategy of being an innovative, integrated mobility solutions company. Technology and service efficiencies remain integral to growing and expanding the Group’s core businesses both organically and through acquisitions.”