Super Group’s revenue for the year to June 30 declined 1.4% to R44.51 billion. following many logistical challenges in South Africa beyond the group's control.
Operating profit decreased 8.9% to R1.87bn. Depreciation and amortisation increased by 5.4% to R1.81bn, partly because of capital investment and acquisitions. Earnings before interest tax depreciation and amortisation (EBITDA) fell 2.4% to R3.68bn
Super Group said its South African commodity transport businesses faced challenging conditions, including low coal-export volumes, border delays and slow turnaround times at ports. The group said profitability was also affected by bad debts in the coal operations.
Its consumer-focused supply-chain businesses delivered a stronger performance, supported by new client acquisitions, product diversification and expanded logistics services.
“The consumer-focused businesses delivered marginally improved results, supported by good performances in the quick-service restaurant and FMCG operations. The refrigerated transport and convenience businesses faced particularly challenging retail trading conditions,” said Super Group chief executive Peter Mountford.
South Africa’s dealership business benefited from a diversified portfolio of value and volume brands. New-vehicle sales of Asian brands increased by 20.8%, although luxury-vehicle volumes declined by 2.5% amid continued pressure on consumer affordability.
Super Group added 11 dealerships during the year, representing brands including Chery, Geely, GWM, Leapmotor, Omoda, Jaecoo, Mahindra and Tata.
Headline earnings per share from continuing operations declined 1.2% to 239.8 cents. A dividend of 55 cents per share declared, versus a R16.30 special dividend paid at the same time last year.
Net finance costs declined by 16% to R637.2m, mainly because of lower interest costs and the reduction in debt following the SG Fleet disposal.
Super Group’s Spanish distribution business, Ader, increased EBITDA by 162.1% to R183.4m, supported by strong demand across its home-delivery, commercial and logistics segments.
In the UK, the performance of Super Group’s dealerships improved substantially, with new-vehicle sales significantly outperforming growth in the national passenger-vehicle market. Chinese brands accounted for 24.9% of group new-vehicle sales in that market, up from 15.7% in the prior year.
Net maintenance capital expenditure amounted to R877.2m, while expansionary capital expenditure stood at R1.17bn. Expansionary lease-portfolio asset working-capital outflows amounted to R223.7m.
Net debt from continuing operations stood at R3.72bn, an increase of 20.6% compared with the previous year. The increase was attributed to net capital expenditure of R2.04bn, lease-portfolio expenditure of R730.7m and settlement of the initial acquisition price for DIG of R448m.
Mountford said the group had entered the new financial year with strong momentum and a clear focus on accelerating earnings growth.
“Despite a volatile operating environment, the group remains confident in its ability to unlock further growth, strengthen operational performance and selectively invest in opportunities that can deliver attractive, sustainable returns,” he said.
During the period, Super Group completed the disposal of SG Fleet and announced the disposal of inTime, excluding Ader. The inTime transaction was concluded after year-end.
The group also closed its UK Hyundai and Suzuki dealerships, while its UK Kia dealerships were classified as assets held for sale.
The closure of TradeMaw, a South African commodity-trading business, was completed. Super Group also disposed of its 75% shareholding and loan claims in the passenger-bus services businesses comprising Phola Coaches and SG Bus Rentals.
THE NATIONAL