Our opinion on the current state of SUPRGRP(SPG)Super Group (SPG) is a large international logistics group offering transportation to the industrial sector. The company has a policy of not paying dividends, preferring to undertake share buy-backs and investing in organic and acquisitive growth. Its policy of diversifying outside South Africa has paid off with as much as 51% of operating profit now coming from non-South African sources. This reduces the company's exposure to the strength of the rand and to the relatively depressed economic conditions which exist in SA at the moment.
The company may have lost as much as R100m during the civil unrest. This is usually a profitable company which generates strong free cash flows. On 19th July 2023, the company announced that it had acquired 78,82% of CBW Group in the UK for GBP30,3m (R700m).
In its results for the six months to 31st December 2024, the company reported revenue down 7,6% and headline earnings per share (HEPS) down 24,2%. The company said the fall was, "...primarily due to weaker performance in the UK Dealerships and Supply Chain Africa Commodity businesses. Operating profit fell by 13.0% to R959.8 million, with the overall operating margin decreasing slightly to 4.1% from 4.3%. This was largely attributed to margin pressure in the Supply Chain Africa Commodity businesses and UK Dealerships. Fleet Africa, however, saw an improvement in operating profit margins."
At the current price of 2760c and on a P:E of 7,8, it looks reasonably valued. It has strong support at around 2500c per share and may bounce off this lower level. On 25th November 2025, the company published a cautionary announcement which caused the share price to jump. An Australian company offered A$3.50 per share for all the shares of Supergroup Fleet. This caused the share price to jump.
