Super Group has reported flat full-year earnings, yet the company has made notable progress in streamlining its operations and enhancing its financial position. For the year ending in June, headline earnings per share (HEPS) fell by 1.2% to 239.8 cents, while earnings before interest, tax, depreciation, and amortisation (EBITDA) decreased by 2.4% to R3.68 billion. Revenue also saw a decline of 1.4%, amounting to R44.51 billion.
The transport and logistics provider indicated that its strategic actions, including several corporate divestments, have delivered substantial value to shareholders, marking a transformative period for the group. Notable divestments, such as the sale of SG Fleet and the inTime business in Germany, have streamlined operations and positively impacted the company’s financial standing.
The sale of SG Fleet generated R7.47 billion in capital, allowing for a special dividend of R16.30 per ordinary share, which totalled R5.54 billion for shareholders, along with a R1.96 billion repayment of interest-bearing debt. This capital redeployment significantly strengthened Super Group’s balance sheet, reducing net gearing from 136.3% to 20.6% and improving the net debt to EBITDA ratio from 2.96x to 0.75x.
Currently, about 60% of Super Group’s operating assets are in its African supply chain operations, with the remainder divided between South African and UK car dealerships, a smaller African fleet leasing business, and loss-making European supply chain operations. The company expressed confidence in its ability to adapt to ongoing global uncertainties despite challenging trading conditions.
While macroeconomic and infrastructural challenges remain, particularly within the commodity sectors, Super Group is focused on service excellence and strategically deploying capital into high-growth opportunities. The company anticipates improved earnings levels in the upcoming financial year, contingent on enhanced performance from its Southern African commodity supply chain businesses, particularly regarding copper exports.
Rationalising dealership operations and cost structures in the UK is expected to further contribute to better earnings performance. Additionally, the Consumer Supply Chain and Fleet Lease businesses are projected to perform well, driven by new customers and expanded service offerings. The South African dealership operations are also expected to maintain strong performance, with revenue growth anticipated from a growing network of emerging brands.