Logistics and mobility group Super Group’s earnings for the year ended June 30, 2023 accelerated by double-digits as its performance exceeded that of pre-Covid levels on the back of new client wins, contract renewals and market share gains.
Headline earnings per share increased by 23.3% to 469.4 cents, while revenue increased by 30.6% to R61.88 billion. Operating profit increased by 20.7% to R3.95bn.
Super Group’s international operations contributed 54% of the sales revenue, up from June 2022 of 52% and 56% of operating profit (June 2022: 53% normalised).
Super Group declared a final gross dividend of 80c from income reserves, compared to the 63c in June 2022.
The group said yesterday its competitiveness was evidenced in significant new client wins, contract renewals and market share gains.
"The investment in technology and fit-for-purpose assets also unlocked efficiencies and created capacity for growth, with integration across operating companies reducing costs and creating shared value-creation opportunities," it said.
Super Group CEO Peter Mountford said in a volatile socio-economic climate, the company continued to demonstrate the adaptability and resilience required to leverage market challenges as opportunities for growth.
"With diversified operations across the globe experiencing the adverse impact of events such as surging inflation, ongoing product shortages, and the war in Ukraine, the group proactively adjusted its business models, client solutions, and operational processes to stay relevant and competitive.
"This agility allowed Super Group to seize growth opportunities and successfully reposition itself in response to shifting consumer demands and market dynamics. Despite significant global economic headwinds, the group delivered record results," he said.
Super Group reported that Supply Chain Africa delivered excellent performance, with revenue increasing by 38.3% to R17.8bn and operating profit increasing by 48.7% to R1.26bn.
"Supply Chain Europe’s overall performance improved considerably, reflecting the ongoing evolution of the business model to ensure both relevant services and optimised cost structures.
"Operational enhancements such as the consolidation of shipments onto larger vehicles, higher average kilometres per load, and the recovery of increased diesel and other operating costs have been key to growth," it said.
The group said SG Fleet’s performance benefited from continued strong order growth, better supply levels, and a more supportive labour environment.
"Customer wins and orders resulted in steady growth, with the order book again outpacing deliveries and further extending order pipelines. The novated channel, in particular, saw a surge in interest for its products.
"This trend was accelerated by the electric vehicle (EV) initiatives announced by the Federal Government, which dramatically increased interest in EVs among novated drivers," it said.
According to the group, the focused delivery of a multi-faceted strategy saw Dealerships SA deliver strong profit growth. New vehicle sales volume increased by 19.1%, strongly outperforming the National Association of Automobile Manufacturers of South Africa (Naamsa) growth of 10.1%.
"In spite of the used vehicle market coming under pressure, the division maintained the sales volumes achieved in the prior period," it said.
The dealership's UK footprint continued to grow as a result of strategic acquisitions in selected brands and key locations. Seven dealerships - including one Ford, two Suzuki, two Kia, and two Hyundai - were added during the year, the group said.
Looking ahead, the group said with the global landscape set to remain volatile, it would continue to face macroeconomic challenges in the year ahead.
"The difficult operating environment does, however, present significant opportunities to innovate and grow. Super Group has proven itself to be resilient and adaptable, and the year ahead will be no different, with the group remaining well positioned to manage the risks and leverage the opportunities inherent in a complex trading environment," it said.
BUSINESS REPORT