This article first appeared on GuruFocus.
Release Date: September 08, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Revenue from continuing operations increased by 6.2% to ZAR45.83 billion, with EBITDA up 15.5% and operating profit up 26.6%.
Headline earnings per share from continuing operations surged 36% to ZAR3.346, and net cash from operating activities rose 24.3% to ZAR2.44 billion.
Strong market share gains in the UK, with new car sales volumes up 22.1% versus national growth of 6.4%, driven by Chinese brands like Omoda, Jaecoo, and Chery.
Exceptional turnaround at ADA in Spain, with EBITDA up 162.1% to ZAR183.4 million, supported by growth in home delivery and industrial logistics.
The acquisition of DIG Fleet Solutions contributed ZAR103.9 million in operating profit in just four months, boosting the Fleet Solutions division's operating profit by 54.3%.
Return on net operating assets improved to 9.2% from 7.3%, nearing the strategic target of 10.4%.
Challenging retail trading conditions in South Africa led to reduced margins and volumes at Lieben Logistics, impacting the refrigerated transport and convenience businesses.
The average price mix of vehicles sold declined due to a shift toward lower-priced Chinese and Indian brands, pressuring dealership operating margins.
Net gearing increased from 20.6% to 27.4%, reflecting higher capital expenditure and the consolidation of DIG, which may raise financial risk.
The Group continues to face macroeconomic volatility in Southern Africa and Europe, with a marked drop in automotive parts distribution volumes in the industrial operations.
Discontinued operations, including the closure of UK Hyundai and Suzuki dealerships and the sale of AMCO, indicate ongoing portfolio restructuring and potential asset write-downs.
Free cash flow after expansionary capital expenditure was only ZAR399 million, limited by significant investment in new warehouses, vehicles, and pallets.
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Q: What drove the significant improvement in the UK dealerships' performance, and how is the shift towards Chinese brands impacting the market?A: Peter Mountford (Group CEO) explained that the UK dealerships delivered a substantially improved performance, with new car sales volumes increasing by 22.1% compared to the national passenger market growth of 6.4%. This was driven by a 228.5% increase in sales from Omoda and Jaecoo dealerships and the introduction of three Chery branded outlets. Chinese brands now represent 24.9% of total new vehicle sales volumes, up from 15.7% in the prior year. Omoda and Jaecoo achieved a combined market share of 4.6% in the UK passenger market in the first half of 2026, compared to 1.5% previously, while Chery grew its market share to 1.8% in June 2026. The UK Vehicle Emissions Trading Scheme is also driving electric vehicle sales growth, with the target increasing from 28% in 2025 to 33% in calendar 2026.
Q: Can you provide more details on the DIG Fleet Solutions acquisition and its contribution to the Fleet Solutions division?A: Peter Mountford (Group CEO) stated that the acquisition of a 70% stake in the DIG Group was concluded on March 1, 2026, for an initial consideration of ZAR448 million plus a deferred contingent purchase consideration of up to ZAR160 million. DIG is a well-established plant and equipment hire business operating across 19 mining sites in South Africa. In the four months to June 2026, DIG contributed an operating profit of ZAR103.9 million. The agreement also includes a minority put option to acquire the remaining 30% shareholding after five years. This acquisition was a primary driver of the Fleet Solutions division's revenue increase of 30.1% and operating profit increase of 54.3%.
Q: What were the key drivers behind the Group's overall financial performance for the year to June 2026?A: Peter Mountford (Group CEO) highlighted that the Group reported excellent results across all key markets. Revenue from continuing operations increased by 6.2% to ZAR45.83 billion, EBITDA increased by 15.5% to ZAR4.16 billion, and operating profit rose by 26.6% to ZAR2.37 billion. Headline earnings per share from continuing operations increased by 36% to ZAR3.346. The strong performance was supported by market share gains in consumer-focused and industrial supply chain operations, solid performance from fleet solutions and dealerships, and the four months of revenue from the newly acquired DIG business. The Group's return on net operating assets improved to 9.2% from 7.3% in the prior year.
Q: How did the Supply Chain division perform, and what were the specific highlights and challenges?A: Peter Mountford (Group CEO) noted that Supply Chain revenue increased by 6.1% while operating profit increased by 20.8%. The Southern African commodity transport businesses performed strongly, with significantly improved trading profits from both coal and copper transport operations. The cross-border transport business delivered a significant turnaround due to improved transport rates and stronger copper trading profitability. The ADA operations in Spain were an exceptional performer, with EBITDA increasing by 162.1% to ZAR183.4 million, driven by growth in home delivery, commercial, and logistics segments. However, the refrigerated transport and convenience businesses faced challenging retail trading conditions, with Lieben Logistics experiencing a significant reduction in retail distribution margins and volumes.
Q: What is the status of the Group's discontinued operations and strategic portfolio review?A: Peter Mountford (Group CEO) provided an update on the discontinued operations. The disposal of SG Fleet was finalized in the previous financial year, and the sale of inTime was concluded in July 2025. The UK Hyundai and Suzuki dealerships have been closed, and the UK Kia dealerships remain classified as assets held for sale. The Group sold its 75% shareholding in its passenger bus services business on April 21, 2026, for ZAR15 million. During the year, the Group resolved to dispose of its 78.82% interest in AMCO, and in June 2026, received an offer for its interest, with the share sale agreement currently being finalized. These actions align with the Group's strategy of focusing on core operations and reviewing businesses that are not meeting asset return requirements.
Q: How did the South African dealership operations perform, and what is the strategy for emerging brands?A: Peter Mountford (Group CEO) reported that revenue in the Dealerships South Africa division increased by 12.3%, driven by a 21.5% increase in new car sales volumes and a 15.8% increase in used sales. Growth in new car sales volumes exceeded the NAAMSA dealer market growth by 4.3%. The division's new car sales volumes in emerging Chinese and Indian brands grew by 91% over the prior year and now represent 33.8% of total new vehicle sales volumes. Super Group added 11 new dealerships during the year, including representation of Chery, Geely, GWM, Jetour, and other brands, bringing the total to 31 operations representing emerging Chinese and Indian brands. The operating margin decreased marginally to 3.5% from 3.7% due to the higher proportional contribution from new vehicle sales activities.
Q: What is the Group's outlook and strategic focus for the financial year to June 2027?A: Peter Mountford (Group CEO) stated that the Group is well positioned to deliver improved earnings in the forthcoming financial year despite challenging trading conditions across Southern Africa and Europe. The consumer supply chain and fleet lease businesses are expected to perform strongly, supported by new customer onboarding and expanded service offerings. The South African dealership operations are expected to sustain their strong performance, driven by the continued expansion of the emerging brands portfolio. In the UK, the benefits of realigning dealership brand representation and the reduced operational cost base will continue to support improved earnings. The Group remains focused on capitalizing on high-growth organic and strategic opportunities while responding effectively to macroeconomic volatility.
Q: Can you elaborate on the Group's cash flow generation and capital allocation during the year?A: Colin Brown (Group CFO) explained that net cash generated from operating activities increased by 24.3% to ZAR2.44 billion. Operating cash flow before working capital movements was ZAR4.3 billion, with a net working capital outflow of ZAR96.3 million. The
For the complete transcript of the earnings call, please refer to the full earnings call transcript.