Super Group reports growth despite higher interest rates
JSE-listed transport and logistics company Super Group showed solid growth in its interim results but higher interest rates put pressure on the bottom line.
Revenue for the six months that ended in December went up by 8percent from R5.8billion to R6.3billion.
The company reported a 12percent increase in operating profit to R503.9million.
According to Larry Lipschitz, Super Group's chief executive, the improved earnings are attributable to the realisation of supply-chain efficiencies within Super Group's businesses and additional investments in higher-margin businesses.
But higher financing costs brought the overall profit, after tax, down for the period.
Net profit was down to R226.8million from R227.3million in the previous corresponding period.
Lipschitz said performance was countered to some extent by slowing consumer spending and changing dynamics within the dealerships and fast-moving consumer goods industries.
He said: "The past six months was a difficult time for us.
"We had solid performance despite higher interest rates, economic downturn and the National Credit Act."
The industrial products business generated particularly strong revenue growth of 66percent and its subsidiary, Mica, benefited from new store openings, increased membership and exclusive brand loyalty.
Super Group invested a further R80million in new Mica member store partnerships and in developing its new central distribution centre.