Super Group announces financial results for FY2017

Super Group has reported revenue increases of 19.4% to R*35.7bn for 2017. This was primarily due to the volume increase in Supply Chain Africa’s commodities businesses, the acquisitions of the Slough Motor Corporation (SMC) dealerships in the UK and SG inTime’s net acquisition of an 88% interest in the Spanish courier company, Servicios Empresariales Ader, SL (Ader). Revenue also increased as a result of the inclusion of Essex Auto Group (EAG) and the Western Cape dealerships for the full year. The acquired businesses contributed 10.8% to revenue growth.

Revenue for Super Group’s Supply Chain business segment increased by 17.8% year-on-year (YoY) to reach R12.6bn for 2017. This was driven by the commodity business for Supply Chain Africa in which SG Coal and Legend experienced a significant increase in volumes whilst the African Logistics business benefited from improved transport rates. A further contributing factor was the inclusion of Ader, a Spanish courier and express transport operator, from July 4, 2017. Operating profit for the segment increased 38.8% YoY to R789.1m which was positively impacted by the inclusion of R28m partial impairment of the Phola Coaches’ goodwill.

Total operating profit increased by 15.1% to R2.4bn with a slight decrease in operating profit margin from 7.1% to 6.9%. The main reason for the softening of the margin was due to the acquisition of lower margin businesses, namely SMC and Ader. The acquired businesses contributed 3.5% to operating profit growth.

Source: Super Group

*ZAR = $0.0703 / €0.0604