Super Group, an industrial transportation operator, says it delivered “an excellent set of results” for the year to June, with earnings growth due to its integrated logistics plan.
This was achieved despite “highly challenging” market conditions and inflationary pressure in both Southern Africa and Australasia, the group said on Monday.
Revenue rose 22%, mainly on new contracts secured in the Supply Chain South African businesses, a strong performance in the African logistics cluster, and better sales in the vehicle dealerships unit.
“We expect trading conditions in the South African economy to remain challenging over the short to medium term,” CEO Peter Mountford said on Monday. “We are also anticipating an increase in competitive pricing pressures across all sectors and will continue focusing on driving cost efficiencies throughout the group.”
Operating profit increased by 18.6% to R1.34bn, driven by operational efficiencies and cost controls in each of the businesses, as well as new contracts. But margin pressure — with the exception of its dealerships division — was a result of competitive markets, especially in the second half of the financial year.
‘Quite good’ commodities
But Mr Mountford said new clients in consumer goods and “quite good” commodities cargoes out of Zambia, the Democratic Republic of Congo and Zimbabwe through Durban harbour had boosted the group.During the year Super Group undertook the listing of 52.5%-owned subsidiary SG Fleet Group on the Australian Securities Exchange. Through its SG Convenience warehousing for fast-moving consumer goods business in South Africa it also bought R&H Liquor Distributors, a supplier to restaurants and hotels.
It bought a 50.1% interest in the GWM South Africa (Great Wall Motors) distributorship and acquired two GWM dealerships.
But it said none of the acquisitions had a material effect on the results.
Super Group’s return on net operating assets after tax was 18.6% for the year.
Source: Business Day