The group reported a 31.5% increase in revenue to R7.14bn‚ mainly because of strong performances by the majority of the Supply Chain South Africa businesses‚ the African logistics and dealerships operations‚ together with the impact of Safika Oosthuizens.
"The growth in operating profit was driven by operational efficiencies and the stringent focus on cost controls within the operations. As a result‚ operating profit increased by 25.7% to R651m‚" the company said.
"The competitive landscape and margin pressure experienced by South Africa's SG consumer business and the retracted novated lease market in Australia‚ meant overall operating profit margin declined marginally from 9.5% to 9.1%," Super Group it said.
Super Group said the earnings growth was commendable given the highly competitive trading environment and strenuous economic conditions experienced by all industries in both SA and Australia.
The local transport and logistics industry was impacted by underlying factors such as weak consumer spend‚ challenges faced by the mining sector as well as the above inflation cost increases being experienced by the local industrial sectors.
Logistics into Africa were more robust and an increase in north- and south-bound activity was seen.
"The slowdown in the Australian commodity business‚ subdued retail consumer market and uncertainty around the Fringe Benefit Tax treatment of novated leases announced by the previous government in July last year‚ negatively influenced the Australian fleet management market until November," Super Group said.
Looking ahead‚ the group said the outlook for the SA economy remains subdued given the low economic growth reported over the last 12 months and uncertain trading and operating prospects with manufacturing and production contraction in both the industrial and mining industries.
The weak Rand‚ interest rate hikes‚ higher fuel prices‚ inflationary pressures and high unemployment rates will continue to hamper growth‚ it said.
The Australian economy for the same period is expected to grow at a slower rate than previously experienced.
Super Group says its Domestic Medium Term Note Programme will allow the group to diversify its sources of funding‚ optimise its borrowing costs and facilitate growth‚ both organically and through acquisitions in its core divisions.
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