Super Group substantially outperformed the South African economy in the six months to December, despite overall growth in the country falling to its lowest level in seven years.
The results were boosted by revenues from German, Australian and UK acquisitions. Turnover rose 15% to R14bn; operating profit soared 17.4% to R1bn, while core headline earnings per share were up 3.2%. Core headline earnings per share excluded acquisition costs and broad-based black economic empowerment costs.
CEO Peter Mountford said on Monday that the group made acquisitions in the currencies of countries in which it buys businesses. “Borrowings are far cheaper than in SA,” he says.
But the diversified logistics and fleet management company expected the outlook for 2017 to remain restrained on subdued global demand for mineral resources and political issues such as Brexit.
It said volatility in sterling potentially affected its UK-based motor interests. It also said the South African economy remained susceptible to negative political influences and corruption.
Like many South African firms, the group has diversified internationally, with foreign operations contributing 38% to revenues and 58% to operating profit in the period. However, headline earnings per share fell 9.5%, mainly on the 9.2% increase in the weighted number of shares and the one-off foreign exchange profit in relation to acquisitions.
The key African Logistics unit reported results in line with the same period previously. The group said that Africa’s growth in general was being hurt by a stronger dollar, weaker oil and commodity prices, and political uncertainty.
But the Australian economy had performed well despite lower commodity prices. The group said its SG Fleet management operations would continue to leverage off its strong competitive position.
Source: Business Day