SuperGroup basks in profitable interim results - CNBC Africa

SuperGroup basks in profitable interim results

Earnings

by admin 0

A crane unloading a container ship at commercial dock. PHOTO: Getty Images

Revenue for the period increased by 31 per cent to 7.1 billion rand from 5.4 billion rand in 2012, and operating profit was also up 26 per cent to 651 million rand from 517 million rand in the previous comparative period.

“The group’s earnings growth is commendable given the highly competitive trading environment and strenuous economic conditions experienced by all industries in both South Africa and Australia,” the group said in a statement.

[DATA SPG:SuperGroup] is a transport logistics and mobility group based in South Africa, with operations in Australia, New Zealand and the United Kingdom.

SuperGroup also recorded a 21 per cent increase in profit before tax to 592 million rand from 490 million rand in 2012. Headline earnings per share were also up by 27 per cent to 121 cents from 97.6 cents in 2012.

“The transport and logistics industry in South Africa was impacted by underlying factors such as weak consumer spend, challenges faced by the mining sector as well as the above inflation cost increases being experienced by the local industrial sectors. Logistics into Africa were more robust and an increase in North and South–bound activity was seen,” said SuperGroup.

South Africa’s supply chain division revenue increased to 3.2 million rand from two million rand in the previous comparative year, with an additional growth in operating profit to 235 million rand from 154 million rand in 2012.

Similarly, revenue for the Africa Logistics division was recorded at 348 million rand, with operating profit growing to 44.3 million and from 17.5 million rand in 2012.

“The renewed African Logistics’ fleet is running at an average capacity of 94 per cent. All of these factors contributed to a sterling set of results reported by this business for the period ended December 2013. The rand weakness over the period also positively contributed to the results with a foreign exchange gain of 10.6 million rand,” said SuperGroup.

Revenue for SuperGroup’s fleet solutions however decreased to 885.5 million rand from 906 million rand, which include its FleetAfrica and SG Fleet sub-divisions. Operating profit also decreased to 297.1 million rand from 306.6 million rand in 2012.

The group’s services, which include the corporate functions, Emerald Insurance and the Mauritius operations, performed in line with expectations.

“The outlook for the South African economy is subdued given the low GDP growth reported over the last 12 months and uncertain trading and operating prospects with manufacturing and production contraction in both the industrial and mining industries,” the group explained.

“Super Group’s business strategy remains unchanged. The Group prides itself on a culture of service excellence in all areas of its business. New business opportunities continue to be a key strategic focus area for management.”

Comments