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Supergroup's revenue and profits up

Supergroup has reported a rise in revenue of 16% to R5,4bn and an increase in diluted headline earnings per share of 92.2 cents for the six months ended December. This compares with from 79.2 cents a year ago.
All businesses‚ with the exceptions of FleetAfrica‚ reported growth mainly as a result of a significant increase in volumes in the supply chain business‚ SG Fleet and its dealerships. The group bought a controlling interest in Digistics‚ a procurement and food distribution business.

Operating profit grew 28% to R517m.

The company said despite the difficult prevailing economic environment‚ it achieved excellent growth in earnings mainly as a result of new business generation across all three divisions.

It noted that disruptions to Supergroup's supply chain business as a result of the Road Freight Association strike in September last year resulted in a 5% reduction in divisional revenue and profit for the period. Key indicators show that South African consumer spending remained under pressure‚ cost increases were above inflation and these factors added to a highly competitive trading environment.

The company said the retail consumer market in Australia remained subdued as a result of the slowdown in commodity exports and the strong Australian dollar. It claimed the good results are a testament to the resilience and sustainability of the South African‚ Australian and sub-Saharan operations which have managed to increase earnings despite highly competitive trading conditions and markets.

Looking ahead‚ the group said the prospects for the South African economy remain mixed with muted growth expected this year. Its outlook for the global economy this year is "cautiously optimistic".


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