Transport and logistics provider Super Group reported a weaker financial performance for the six months ended December, with revenue down 7.6% from the previous first half.
The company attributed the slump in revenue to weaker performances in its UK Dealerships and Supply Chain Africa Commodity businesses, which were somewhat offset by improved profit margins in the Fleet Africa unit.
The group’s supply chain operations in Africa were weighed down by a significant decline in coal export volumes, largely owing to disruptions caused by the unrest in Mozambique during the final quarter of 2024.
On top of border delays and lower coal exports, the African supply-chain business was dragged down by slow turnaround times at SA ports, while the ongoing rerouting of copper exports to China and the Middle East also eroded the unit’s revenue and margins.
Additionally, the company warned that Europe’s tightening environmental policies have dealt a blow to its network of car dealerships in the UK, with Ford’s declining new vehicle sales and shrinking market share driving poor results for the UK dealership business.
Headline earnings per share (HEPS) fell 24.2% to 104.8c, but the group emphasised that its balance sheet was robust and “cash flow should be satisfactory”.
For the six months to end-June 2025, Super Group expects to perform at slightly better earnings levels “despite the prevailing difficult trading conditions in both Southern Africa and Europe”.
However, this potential improvement would depend on the performance of its Southern African commodity supply chain businesses improving, particularly in terms of copper exports.
“The benefits of rationalising the dealership operations and cost structures across the UK should contribute to a better second half earnings outcome from this cluster,” said the company.
Amid the weaker results, the group hopes the Dealership SA operations will “continue outperforming the local market”.
At 2.25pm Super Group’s share price was up 3.47% to R28.35, giving it a market cap of R9.32bn.
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