Our opinion on the current state of SANTOVA(SNV)Santova (SNV) is an international logistics company with a presence in 19 offices across 7 countries. The company goes beyond traditional logistics by offering comprehensive supply chain management services, which include the design, implementation, coordination, control, and monitoring of international supply chains. Through a virtual client-centric information system, Santova facilitates inventory management and provides enhanced tracking and tracing services.
Santova has a global reach, with offices in key regions: in the East (Thailand, Vietnam, Malaysia), Europe (Germany, the Netherlands, the UK), major cities in South Africa, as well as Mauritius and Sydney, Australia.
In its financial results for the year ending 29th February 2024, Santova reported revenue of R617.7 million, down from R654.4 million in the previous period. Earnings per share (EPS) was 111.81c, compared to 154.74c in the prior period. In a trading statement for the six months ending 31st August 2024, the company projected that headline earnings per share (HEPS) would decline by between 16.9% and 21.9%.
Technically, the share had been in a steady upward trend from May 2020, which ended in August 2023. The share price has since fallen to 720c per share, but it may now be at the start of a new upward trend. The stock is relatively well-traded, making it practical for private investors, and it stands to benefit from improvements in both the South African and UK economies.
Santova's global presence and ability to manage complex supply chains position it well for future growth, though it faces short-term pressures due to economic factors impacting revenue and earnings.
