Super Group’s Record Dividend Stuns, but Revenue Pressures Keep Share Price at Bottom
Super Group delivered a landmark payout in H1 2025, but the market reaction highlighted lingering concerns over profitability and...
Quick overview
- Super Group declared a special dividend of R16.20 per share for H1 2025, significantly exceeding its current share price.
- The sale of SG Fleet improved the company's balance sheet by unlocking R7.47 billion in capital and reducing debt.
- Despite the positive financial maneuvers, revenue and profits declined, raising concerns about ongoing operational challenges.
- Management emphasized a focus on high-growth opportunities to navigate global uncertainties and improve investor confidence.
Super Group delivered a landmark payout in H1 2025, but the market reaction highlighted lingering concerns over profitability and operational performance.
Dividend Overshadows Share Price
Super Group declared a special dividend larger than its current share price, paying R16.20 per share for H1 2025. Despite this eye-catching return, investors remained cautious, leaving the stock trading near the bottom at around R14.00.
Financial Health vs. Operational Strain
The results painted a mixed picture. On one hand, the sale of SG Fleet unlocked capital, reduced debt, and strengthened the balance sheet. On the other, revenue and profits came under pressure, highlighting the operational challenges that continue to weigh on the group.
SPGJ Chart Weekly – Buyers Remain Weak
Super Group H1 2025 Earnings: Special Dividend Boosts Balance Sheet
Dividend Payout
- Declared a special dividend of R16.20 per share, driven mainly by the sale of SG Fleet in Australia.
- Total payout: R5.54 billion, compared with just 60 cents a share a year earlier.
- The dividend exceeded Tuesday’s share price of R14.12, which is far below the R24.15 level of a year ago.
- No ordinary dividend was declared at the results release.
Impact of SG Fleet Sale
- Sale unlocked R7.47 billion in capital.
- Enabled repayment of R1.96 billion in interest-bearing debt.
- Net gearing reduced dramatically to 20.6% from 136.3%, strengthening the balance sheet.
Financial Performance
- Revenue: down 1.4% to R44.51 billion.
- EBITDA: down 2.4% to R3.68 billion.
- Operating profit: down 8.9% to R1.87 billion.
- Headline EPS: down 1.2% to 239.8 cents.
- Net tangible asset value per share: up 281.4% to R26.32.
Divisional Breakdown
- Revenue from continuing operations fell 1.4% to R44.51 billion.
- Contribution by division:
Supply Chain: 46.4%
Dealerships: 50.8%
Fleet Solutions: 2.8%
- UK Dealerships and Supply Chain Africa Commodity businesses weighed on results.
Strategic Divestitures
Chairman Valentine Chitalu and CEO Peter Mountford called the year “transformative.” Key divestitures — notably the sale of SG Fleet in Australia and the inTime business in Germany — not only streamlined operations but also improved financial flexibility. These moves underscore the group’s intention to refocus resources on higher-growth areas.
Navigating Global Challenges
Directors highlighted the company’s resilience and adaptability amid global uncertainty. Commodity industries still face macroeconomic and infrastructure obstacles, but management emphasized that targeted capital allocation and a focus on high-growth opportunities have helped offset these headwinds.
Conclusion: Super Group’s H1 2025 was defined by a balance of strength and strain. The extraordinary dividend and lower debt reflect a stronger financial foundation, while underperforming segments continue to test investor confidence. Looking forward, the group’s ability to execute in its core divisions and leverage a streamlined structure will determine whether this reset truly delivers long-term, sustainable growth.
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