A Super Group truck. Photo: Supplied
Super Group won new clients, several contracts were renewed and it gained market share in the year to June 30 even as geopolitical uncertainties and infrastructural challenges in South Africa put significant pressure on its revenue and operational cost structures.
Revenue increased 4.6% to R64.9 billion, benefiting from a weaker rand and acquisitions in the UK and South Africa. Despite this growth, earnings before interest, tax, depreciation and amortisation fell 1.4% to R8.45bn and operating profit fell 5.6% to R3.79bn, mainly due to weaker performances in the European supply chain businesses and the UK dealerships business, CEO Peter Mountford said yesterday,
A 60 cents a share dividend was declared, down from 80 cents last year. The share price also retracted on the JSE by 5.35% yesterday afternoon to R26.16.
“The business has done well in growing market share across its Southern African Supply Chain and Dealerships operations,” said Mountford.
The African fleet solutions business increased revenue, after growing ad hoc rental volumes on existing contracts and despite a dearth of new business.
Reduced coal export volumes, border delays and slow turnaround times at South African ports hampered growth in the industrial and commodity transport businesses, with the rerouting of copper exports from Durban to Dar es Salaam and Walvis Bay led to lower revenues and margins.
The decline in export volumes and bad debts in the division’s coal operations negatively impacted profitability within these businesses.
He said diversification from operations that span geographies, industries and currencies helped to manage market volatility.
The revenue and operating profit contributions from the non-South African businesses were 56% and 54%, respectively.
Supply Chain Europe and Dealerships UK operations faced headwinds, but South African consumer and Australasian fleet solutions grew well.
Supply Chain Africa’s consumer businesses benefited from new business wins and contract renewals.
“Exceptional order and delivery levels resulted in an increase in revenue and operating profit for SG Fleet.” The fleet solutions business operates in Australia, New Zealand and the UK.
“We were able to reap the benefits of a strong order book as the delivery environment improved,” he said.
The South African dealerships business saw a modest increase in revenue, driven by higher sales of new and used vehicles.
The group’s new vehicle sales rose 4.9%, outperforming the reported 6% industry decline. Used vehicle sales grew by 4.8%, with inventory and trade-in value optimisations helping to offset market price pressures.
Higher pricing across new and used vehicles and the weaker rand against the UK pound saw Dealerships in the UK increase revenue by 6.9%. However, supply issues resulted in lower Ford sales volumes and market share and operating profits were negatively impacted by a significant decline in used vehicle prices and gross margins.
Supply Chain Europe’s revenue increased 29.1% to R5.8bn largely due to the R1.35bn contribution from AMCO and the weakening of the rand against the euro. The division’s overall performance was disappointing, with an operating loss of R87.7 million.
“This was due to a sharp decline in automotive parts distribution volumes across Europe and a significant erosion of gross margins due to excess logistics capacity in Germany,” said Mountford.
“The group will continue to focus on innovative client solutions and effective cost management and is well positioned to deliver a resilient financial performance for the year ending June 2025,” Mountford said.
BUSINESS REPORT
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