Super Group delivers solid earnings amid COVID-19 disruptions
Super Group has reported that headline earnings per share rose by 4.7 per cent, for the six months ended December 2020. Cash generated from operations increased by an impressive 23.5 per cent. However, no interim dividend has been declared. Peter Mountford, CEO at Super Group joins CNBC Africa for more.
Mon, 22 Feb 2021 15:52:55 GMT
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AI Generated Summary
- Improved performance in European and UK operations contributed to Super Group's positive earnings results.
- Challenges at the Batebridge border post impacted African logistics operations, but the business is poised for recovery in exports.
- Super Group is exploring opportunities in vaccine distribution and ready to support government efforts in the COVID-19 response.
Super Group has reported a promising increase in headline earnings per share by 4.7 per cent for the six months ended December 2020. The company's cash generated from operations also saw an impressive rise of 23.5 per cent. Despite these positive results, no interim dividend has been declared. Peter Mountford, the CEO of Super Group, discussed the company's performance and future outlook in an exclusive interview with CNBC Africa.
Mountford acknowledged that the European and UK operations, as well as the strong performance from SG-3 in Australia, played a significant role in maintaining profitability within the group during the challenging period. He highlighted the turnaround of the German business, which had previously underperformed due to disruptions in the automotive industry and COVID-19-related issues. The optimization and rationalization efforts in the German and South African supply chain businesses have yielded positive results, leading to improved performance and cost management.
Regarding the African operations, Mountford addressed the challenges faced at the Batebridge border post, which caused significant delays and impacted the logistics division. He mentioned the prolonged delays and the impact on exports, especially copper, from the sub-region to China. Mountford also cited adverse movements in exchange rates and legislative changes in Zambia as factors affecting the African logistics business. Despite these challenges, he expressed optimism about the business's prospects as exports start to recover and copper prices remain strong.
In response to the interviewer's question about the African Continental Free Trade Area agreement, Mountford expressed confidence in Super Group's logistics business in Africa. He emphasized the company's substantial investment in renewing its vehicle fleet in the region, highlighting the potential benefits of the free trade agreement for the movement of goods across the continent. Mountford also mentioned Super Group's involvement in fuel trading, tire import, and other commodities, which could benefit from trade facilitation measures.
When asked about Super Group's role in vaccine distribution and mobility movement amid the COVID-19 pandemic, Mountford confirmed the company's willingness to participate in tenders for vaccine distribution. Super Group has experience in vaccine distribution through its logistics operations and holds a pharmaceutical license in its consumer operations. With a strong capability in refrigerated vehicle and facility management, the company is prepared to support government efforts in vaccine distribution to alleviate pressure on public resources.
Looking ahead, Mountford indicated that Super Group is actively exploring opportunities in the vaccine distribution space and is ready to contribute its expertise and resources to support the government's vaccination efforts. While the response to potential involvement in vaccine distribution is currently in a 'wait and see' mode, Super Group remains poised to leverage its capabilities to assist in the distribution process.
With a solid financial performance in the previous period and a positive outlook for the future, Super Group under the leadership of Peter Mountford is well-positioned to navigate the challenges posed by the ongoing disruptions and capitalize on emerging opportunities in the market.