Super Group expected to report a robust 30% to 40% increase in revenue in the six months to December 31 after it weathered a myriad of negative local and global events and drew on the benefits of its diversity, scale and experience.
A positive trading statement and earnings forecast saw the share price rise 6.4% to R29.40 by yesterday afternoon.
The group said revenue was expected to be between R28.1 billion and R30.3bn, while interim pre-tax profit would rise 25% to 35% to between R1.53bn and R1.65bn. Interim headline earnings per share was also expected to increase between 25% and 35%.
The group’s journey over the past 10 years has seen shareholder equity grow from R3.4bn in June 2012 to R16.9bn at June 30, 2022 - a 10-year compound annual growth rate of 17.4% per year.
In the six months, revenue was mainly driven by strong commodity transport and consumer supply chain performances in Supply Chain Africa. Higher average revenue per load in Supply Chain Europe, and consolidation of six months revenue from LeasePlan in Australia also contributed materially.
Improved availability of stock resulted in an increase in new car sales for the Dealerships divisions in the UK and South Africa.
Cost management initiatives helped mitigate escalating inflation rates, diesel price increases and rand volatility.
Supply Chain Africa saw significant new business wins and contract renewals, which boosted revenue. A diversified product basket and improving volumes in industries such as hospitality, entertainment and quick service restaurants drove performance.
Improved commodity prices and commodity volume increases also benefited the group.
The group’s European operations improved considerably. Operational enhancements - such as the consolidation of shipments onto larger vehicles, higher average kilometres per load, and increased rates to recover higher diesel costs - had been key to growth.
At SG Fleet the inclusion of LeasePlan boosted revenue, as had strong residual value profits on the End of Lease (EOL) vehicle sales.
At Fleet Africa, increased activity on contracts and good growth in ad hoc rental volumes produced solid results. The Kenyan business saw excellent growth, albeit off a small base.
At Dealerships South Africa, improved availability of new vehicles resulted in strong sales volume increases, well ahead of the National Association of Automobile Manufacturers of South Africa growth statistics.
The availability of new and used vehicles would however continue to be erratic, with componentry and parts supply still a challenge.
At Dealerships United Kingdom, the footprint grew as a result of the acquisition of six dealerships - one Ford, two Kia, two Hyundai and one Suzuki. Improved availability of both new and used vehicles had driven strong sales volume increases, the group said.
BUSINESS REPORT