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Super Group has best day in years

Michelle Gumede Industrial Reporter gumedemi@businesslive.co.za

Super Group had its best day on the JSE in more than two years on Thursday, after it said headline profits could rise at least a quarter for the six months to December, driven by strong commodity transport and consumer supply chain performances.

Super Group had its best day on the JSE in more than two years on Thursday, after it said headline profits could rise by at least a quarter for the six months to December.

Group headline earnings per share (Heps) are expected to rise 25%-35% to as much as 257.7c, the company said. That would be more than 50% above prepandemic levels.

At close of trade, Super Group’s share price was 11% higher at R30.66, its biggest oneday gain since December 2020, according to Infront data.

The supply chain management company, with interests ranging from supply chain management to fleet solutions and dealerships, now has a market capitalisation of R10.6bn.

In an operational update, the group said revenue growth in the six months was driven by strong commodity transport and consumer supply chain performances in Supply Chain Africa that bagged big new business wins and contract renewals.

“A diversified product basket and improving volumes in industries such as hospitality, entertainment and quick service restaurants are driving strong performance levels.”

At its Supply Chain Europe, where it recorded higher average revenue per load, Super Group said operational enhancements — such as the consolidation of shipments on to larger vehicles, higher average kilometres per load and increased rates to recover higher diesel costs — have been key to growth.

Providing logistics and mobility solutions across SubSaharan Africa, the UK, Europe and Australasia, Super Group leverages its expertise and cutting-edge technology to offer supply chain, dealership and fleet solutions in 21 countries.

SG Fleet, held by Super Group, acquired fleet management company LeasePlan Australia and LeasePlan New Zealand in 2021 as part of its strategy to increase its global footprint through acquisitions to diversify its earnings stream.

The company said the consolidation of the full six-months’ revenue from LeasePlan in Australia also contributed to revenue growth.

Improved availability of stock resulted in a notable increase in new car sales volumes for the dealerships divisions in the UK and SA, it said.

“Super Group has weathered a myriad of negative local and global events and the cumulative benefits of the group’s diversity, scale and experience continue to translate into a big advantage for all stakeholders.

“The execution of a robust operational growth strategy saw all divisions deliver an excellent financial performance for the six months to December 2022,” said Super Group.

The transport logistics and mobility group achieved this progress against a backdrop of rising inflation rates, diesel price increases and rand volatility.

In its previous six-month period, the company generated most of its revenue in SA (49%), followed by the UK (24%) and Australia (16%).

Super Group’s interim results for the six months to December 31 are expected to be published on or about February 21.

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2023-02-03T08:00:00.0000000Z

2023-02-03T08:00:00.0000000Z

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