Santova on Tuesday reported a strong interim performance, underpinned by its operations in Africa, as global supply-chain disruptions drive demand for the group’s specialistservices.
Profit for the six months to end-August jumped 58.5% to R107.1m, or 78.1c a share, with revenue rising to R313.7m from R278m in the same period a year earlier.
Income from Africa soared 52.7% to R96.9m as the group continued to add quality customers.
“Africa, materially represented by SA, has continued to cement itself as provider of choice, with customers seeking more sophisticated solutions to deal with global disruptions,” Santova said in statement accompanying its financials.
“The SA performance is commendable considering the devastating impact of the April 2022 floods on logistics infrastructure in Durban, and the increasing inefficiencies with Transnet port and rail operations,” it added.
The Durban-based company, which uses its platforms to assist its customers to source and distribute products worldwide, operates in 11 countries: SA, Mauritius, the US, Germany, the Netherlands, UK, Australia, Hong Kong, Singapore, Thailand, and Vietnam.
Global supply-chain disruptions have driven demand for Santova’s specialist services, as firms have outsourced that function to reduce risk and respond more quickly to changes in consumer behaviour.
Santova said the outlook for the next six months remains unpredictable as the current market volatility is likely to persist. “Inflationary pressure continues to mount with major economies experiencing surging inflation precipitated by factors such as the sustained supply chain disruptions and the ongoing conflict between Russia and Ukraine which has driven up gas prices across the UK and Europe,” it said.
“A slower peak season, which usually runs from late August to early November, is anticipated, because large customers are sitting with elevated stock levels after ordering Black Friday and Christmas stock earlier than usual to avoid delays.”
While shipping rates have fallen in 2022, with demand apparently cooling as congestion eases on supply chains, they remain above pre-pandemic levels and “service and capacity availability remains unreliable due to the ongoing global volatility”, Santova added.
In September the group completed the acquisition of A-Link Freight in the US for $2.35m, and is “optimistic about the potential of A-Link and the broader opportunities for the group in the region”.
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