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Tuesday, July 23, 2024

Super Group earnings expected to drop sharply due to the coronavirus pandemic

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Super Group, a leading transport logistics company providing end-to-end supply chain management solutions, said on Tuesday that earnings before interest, taxation, depreciation and amortisation (Ebitda) for the financial year to June 30 for the transport and logistics group was expected to fall by between 32 percent and 34 percent from R3.7 billion reported the prior year, due to the impact of lockdowns in South Africa, Australia, Germany, Spain and the UK.

The transport logistics company said in a trading statement that the Covid-19 pandemic had resulted in an even more demanding and uncertain social and economic environment in South Africa, and the lockdowns in various countries had created significant business disruptions.

It said revenue was expected to be between 8 percent and 10 percent below the previous year’s R37.9 billion.

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The carrying values of certain goodwill, intangible assets and properties had been impaired, mainly against Supply Chain Europe of R599 million, Dealerships SA of R184 million and Supply Chain Africa of R112 million. Provisions for potential bad debts of about R174 million were raised.

Operating profit was expected to be down by between 70 percent and 75 percent from R2.6 billion in the prior year, with the major contributors to this negative variance being Dealerships SA and UK, SG Fleet and the Supply Chain Europe businesses, worsened by the impairments and bad debt provisions.

The overall financial position, however, remained “robust” and net debt to equity, excluding IFRS 16, was held at about 24.1 percent.

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