Super Group adds up the cost of Covid


Super Group adds up the cost of Covid

Published Date: 2020-11-18 | Source: Stephen Gunnion | Author: Stephen Gunnion

Super Group adds up the cost of Covid

The logistics, supply chain and dealership group expects a big recovery this year if there are no further lockdowns.

Super Group estimates that Covid-19 cost it R5.2 billion in revenue in the year to end-June - and stripped R932 million from operating profit and R613 million from headline earnings.

With the local economy already constrained before the outbreak of the pandemic in March, the logistics, supply chain and motor dealerships group said the economic and social environment because even more demanding and uncertain. Its operations in Australia, German, Spain and the UK were also disrupted by lockdowns, severely impacting trading between March and June. The majority of its Supply Chain operations and Fleet Africa were designated as essential service providers during the lockdown.

Revenue fell 8.7% to R34.6 billion, mainly due to the tough operating conditions, while operating profit decreased by 41% to R1.58 billion. The estimated impact of Covid-19 on operating expenses included retrenchment costs of around R31.4 million and the cost of compliance to Covid-19 health and safety protocols of about R22.3 million. It swung to a loss of 52.1c per share from earnings of 360.8c last year while headline earnings per share decreased by 60% to 151.2c. Like last year, it hasn't declared a dividend.

The group said it expected a recovery in Supply Chain Africa's industrial and consumer businesses this year, while Supply Chain Europe's businesses were already starting to see the benefits of efforts to streamline their operations. High levels of fleet extensions in the past two quarters and growing consumer interest levels positioned SG Fleet well too.

Its shares fell 1.7% to R21.44 yesterday. The results were released after the close of trade.

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