Super Group will announce the outcome of the SG Fleet shareholder meeting in Australia to consider a proposal regarding the disposal of Super Group's equity interest in SG Fleet, on or about April 8, 2025.
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Super Group, the global logistics and mobility business, is facing significant challenges in its European markets and has decided to sell its InTime courier and freight business in that region.
The group reported a 7.6% decline in revenue on Tuesday to R23.67 billion for the six months to December 31, driven mainly by weaker performances in the UK Dealerships and Supply Chain Africa commodity businesses.
Earnings before interest, tax, depreciation, and amortisation fell 5.2% to R1.85 billion and operating profit fell 13% to R959.8 million. Headline earnings a share were 24.2% lower at 104.8 cents.
Nevertheless, the share price gained 3.43% to R28.34 on the JSE Tuesday afternoon, up from R25.71 a year ago.
The Supply Chain Europe division, particularly InTime, saw a big drop in auto parts distribution volumes and substantial margin erosion due to reduced vehicle manufacturing volumes across Germany. The European time-critical sector also remains in decline.
CEO Peter Mountford said in light of these challenges, it was decided to seek a buyer for InTime, and this disposal process was “well advanced.” The goal was to find a buyer who could leverage InTime’s strong network and capabilities while aligning the business with future growth opportunities, he said.
He said the group's management expected to be able to report better earnings in the second half, in spite of the tough trading conditions in Southern Africa and Europe.
This depended on a stronger performance from the Southern African commodity supply chain businesses, particularly copper exports, and the rationalisation of the UK dealership operations.
The consumer supply chain and fleet leasing businesses were expected to perform satisfactorily, while Dealerships South Africa was anticipated to continue outperforming the local market, he said.
The entry of new Chinese-manufactured vehicle brands has negatively affected the market share of traditional and legacy vehicle brands and impacted later model pre-owned and demo vehicle sales and margins. However, the group was well represented with these brands, with one Chery, three Haval, Jetour, and GWM dealerships, and four Foton dealerships.
Meanwhile, the disposal of the equity interest in SG Group in Australia was poised to significantly enhance the group’s financial position.
Shareholders approved the disposal of the 53.58% equity interest in SG Fleet on February 25, 2025, at a meeting. This transaction would reduce group gearing from 221% to an estimated 24%.
The transaction was also expected to return about R16.30 per share to shareholders via dividend. “The group anticipates this move will further enhance its financial flexibility as it continues to focus on organic growth and stability,” Mountford said in a statement.
He said once the SG sale was completed, Super Group would be better positioned as a focused, diversified logistics and mobility solutions provider in Sub-Saharan Africa, Europe, and the UK, with a strengthened financial profile and better cash generation capacity.
“The simplified structure of the group will improve visibility for investors and allow management to focus on growth opportunities in its Supply Chain, Fleet Africa, and Dealerships divisions,” he said.
The outcome of the SG Fleet shareholder meeting to approve the transaction will be announced on or about April 8.
“The balance sheet remains robust, and operating cash flow is expected to remain satisfactory. The disposal of SG Fleet, coupled with the ongoing initiatives across the business, positions the group optimally for improved financial performance over the next six months,” Mountford said.
BUSINESS REPORT