African and European logistics provider Super Group reported a mixed set of results for the year ended June 30, 2017.
Its Supply Chain Africa division, which is overwhelmingly exposed to South Africa, reported revenues of R8,344m, an increase of 4.0% year-on-year. Its businesses serving the South African consumer/retail sector apparently struggled on the back of lower volumes, “primarily due to the consumer being under pressure”. They also lost a drinks distribution contract from Monster in July 2016. However, the South African coal logistics business performed well, while VSc Solutions (supply chain consulting and technology) reported “solid” results.
The results of SG Freight (road freight and contract logistics), Super Rent (truck hire), SG Mobility (contract logistics) and Digistics (procurement and food distribution) were described as “reasonable”, under challenging trading conditions.
The Supply Chain Europe division, which comprises the activity of the German express provider IN tIME, reported full-year revenues of R1,998m. Given that the company was acquired in November 2015, a full year-on-year comparison is not provided, but for the second half of the financial year ended June 30, 2017, IN tIME’s revenues increased by 7.2%.
Subsequent to the end of the financial year, IN tIME acquired an 89.5% interest in Ader, a Spanish courier and express transport operator, for €11.6m. Ader, founded in 1992, has 17 offices throughout Spain and 15 operations in the Eurozone.
Ader specialises in the provision of dedicated and exclusive transport and logistics solutions. SG IN tIME was encouraged by a large OEM to establish a direct presence in Spain in order to service the increase in locally manufactured parts volumes in the Iberian environment. Ader has been SG IN tIME’s local network partner in Spain for 15 years.
Looking forward, Super Group has stated that it will explore similar opportunity to Ader across Europe.
Its outlook for the Supply Chain Africa business was more circumspect. It stated: “Supply Chain Africa continues to focus on retaining its existing client and customer base, as well as securing new long-term contracts at acceptable margins. Given the competitive trading environment, this is one of the major challenges faced by this business. African Logistics has been streamlined and although it remains a tough environment, it is well positioned for any growth going forward.”
Source: Super Group
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