Super Group’s share price jumped to its highest in more than two months on Tuesday after the logistics and supply-chain management company increased its final dividend for 2022 by more than a third.
The company declared a dividend of 63c for its year ended June and investors cheered by pushing the stock up as much as 9% in intraday trade.
“Super Group has resiliently weathered the global shock waves of events such as the war in the Ukraine, global logistics and supply-chain disruptions and extreme weather,” group CEO Peter Mountford said.
As was the case for many companies, the devastating floods in KwaZulu-Natal and civil unrest in the province and Gauteng hit the company hard. It reported R45.7m in stock and vehicle losses as a result of the violence in July last year.
Still, group profit after tax soared 36.9% year on year to R1.74bn on a 17% increase in revenue to R46.24bn. Core earnings jumped 69.8% to R7bn, while headline earnings per share were up 33.4% to 380.7c.
The company, valued at R10.635bn, generates most of its revenue in SA (49%), followed by the UK (24%) and Australia (16%). The bulk of group revenue comes from its dealerships division (41.6%), followed by supply chain (35.3%) and fleet services (23.1%).
“The cumulative benefits of the group’s diversity, scale and experience translate into a significant advantage for our clients and new business wins contributed to a strong performance against a gloomy economic backdrop,” Mountford said.
The acquisition of LeasePlan, a New Zealand-based fleet management company, helped offset the local setbacks and boosted the group’s financial performance.
“The integration of LeasePlan into our SG Fleet business is progressing well, and the combined entity is already delivering strongly on the potential created by bringing two leading businesses together,” Mountford said.
The company first listed on the JSE in 1996 and provides logistics and mobility services across SA, the UK, Europe, Australasia and other parts of Africa. It employs more than 14,000 people and operates a fleet of more than 265,000 vehicles.
By the JSE’s close on Tuesday the share price had pared gains, ending 4.88% higher at R29.23. This was its biggest one-day gain in six weeks.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.