Supply Chain

Peter Mountford (Group CEO)


Operational footprint map

R’000  Change %  Year ended 
30 June 
Year ended 
30 June 
Revenue    10 342 101  9 421 638 
Supply Chain Africa  4.0  8 344 186  8 021 631 
Supply Chain Europe  Nm  1 997 915  1 400 007 
EBITA    676 631  648 015 
Supply Chain Africa  (3.2) 482 163  497 905 
Supply Chain Europe  Nm  194 468  150 110 
Operating profit    568 686  555 398 
Supply Chain Africa  (2.3) 448 528  459 056 
Supply Chain Europe  Nm  120 158  96 342 
Operating margin (%)      
Supply Chain Africa    5.4  5.7 
Supply Chain Europe    6.0  6.9 
Profit before tax    491 770  457 869 
Supply Chain Africa  6.0  413 665  390 154 
Supply Chain Europe  Nm  78 105  67 715 
Net operating assets    5 796 941  5 922 863 
Supply Chain Africa  5.9  3 455 840  3 263 231 
Supply Chain Europe  (12.0) 2 341 101  2 659 632 

Nm: Not meaningful


Supply Chain Africa

The Supply Chain Africa Division delivers an end-to-end supply chain solution through the integration of its multiple business units. Its services include supply chain optimisation, consulting, technology, procurement, third-party distribution, transport, multi-temperature controlled product distribution, bulk raw material transportation, warehousing, inbound and outbound freight forwarding, customs clearing, import and export consolidation, international airfreight services and bonded cross-border transport. Supply Chain Africa has diversified its service offering to include, among other things, brand management, sales and merchandising and integrated distribution to the national convenience market.

The business combines the skills of a team with many years of supply chain experience with assets such as the Super Park distribution hub and world-class technology to drive efficiencies for clients within a multidisciplinary environment. For example, it is able to aggregate loads across customers and manage backhaul capacity to optimise route networks and reduce supply chain system costs.

The Supply Chain Africa business comprises the following main underlying businesses:

  • SG Consumer 
  • SG Convenience 
  • SG Mobility
  • SG Freight (incl. SG Bulk)
  • Super Rent
  • Digistics
  • SG Coal
  • Phola Coaches 
  • Legend 
  • VSc Solutions 
  • SG Agility \SG Gateway Services
  • Super Group Brands
  • African Logistics

SG Consumer provides end-to-end supply chain solutions for the FMCG industry. The business specialises in the primary and secondary distribution, warehousing and debtors administration of products ranging from foodstuffs, personal hygiene, detergents, plastic ware and beverage and confectionery type products. Core services entail primary transport from factory through to full warehousing functionality and distribution to customers. These services are performed whilst utilising state-of-the-art warehouse management, route planning and vehicle monitoring technologies.

SG Convenience is the largest player in South Africa’s convenience distribution market, distributing to over 23 000 outlets nationwide. The Group has a 20 000m2 distribution centre at Super Park in Johannesburg and a 16 000m2 warehouse in Cape Town. The Port Elizabeth, Durban, Nelspruit and George distribution centres have sufficient space to meet current demand. The business spread of SG Convenience is as follows: 54% to retail forecourt stores, 18% to convenience stores, 12% to the hospitality industry, and 16% to other entities such as schools, hospitals, gyms and golf clubs. SG Convenience is the only true multi-temperature convenience distributor in South Africa, offering clients frozen, chilled and ambient temperature categories in one delivery. The SG Convenience service also includes the distribution of liquor to hotels, restaurants and retail liquor chains and stores. Together with SG Gateway Services, SG Consumer and Super Group Brands, SG Convenience provides an integrated national logistics service to its customers.

SG Mobility is a niche supply chain management company focused on providing clients with fully integrated supply chain solutions that can respond quickly to the changing demands of the marketplace. It specialises in the management of the warehousing and outbound distribution of parts and accessories for clients in the automotive, IT, mining and pharmaceutical sectors.

SG Freight (including SG Bulk) is a freight, dry bulk powder and liquids distribution business. SG Freight provides a national primary haulage service across the country with deliveries also being made into Botswana, Namibia and Mozambique. 80% of all tonnage moved is through long-term contracts across a bluechip customer base. Market sectors include paper and pulp, packaging, building materials, food and plastics industries. It also provides short and long haul tanker transportation to clients in the civil engineering, construction, mining and cement industries.

Super Rent is the Group’s truck hire business with a national footprint covering all major centres across South Africa. Super Rent operates over 1 700 vehicles with a wide range of vehicles available for short- medium- or long-term hire from light utility vehicles to panel vans to trucks. The fleet includes a unique range of specialist commercial vehicles for hire including refrigerated trucks, crane trucks and passenger busses. The business also provides FML, outsourced distribution services and can assist with professional drivers and van assistants.

Digistics is a procurement and food distribution business, distributing multi-temperature controlled product portfolios for McDonalds, KFC, King Pie, Corner Bakery, Pizza Hut and other QSR’s. Super Group had a controlling 55% interest in Digistics as at 30 June 2017. Subsequent to year end, the 45% minority interest was acquired.

SG Coal is a logistics services company that provides the hauling of dry bulk goods such as coal, chrome and “run of mine minerals” in tipper trucks. SG Coal is a business built on more than 60 years of practical experience. The company has one of the biggest fleets of coal haulage trucks in Africa. The greatest advantage the company has in the market is its “end-to-end” supply of road maintenance vehicles, loaders and other yellow equipment. In this way it supplies in the total demand of a coal mine’s coal haulage needs.

Phola Coaches is a leading provider of passenger transport solutions and bus charter services. The company’s core business is focused on long-term passenger transport contracts in the construction, mining, power generation and higher education sectors. Super Group has a controlling 75% interest in Phola Coaches.

Legend is a logistics services company that provides the hauling of coal for coal mines. Super Group has a controlling 75% interest in Legend.

VSc (Virtual Supply Chain) Solutions is a global supply chain consulting and technology company. The business focuses exclusively on best practices in the design, implementation and ongoing management of consulting and technology solutions across the supply chain.

SG Agility is a freight forwarding and clearing agent that focuses on diversified industrial customers. It ensures that goods get from their point of departure to their destination in the most cost and time effective manner, and in their original condition. SG Agility helps importers to enhance product lifecycles, reduce inventory costs, and achieve greater returns on working capital. SG Agility is a joint venture between Super Group (55%) and Agility (45%).

SG Gateway Services is a company that offers some Super Group customers a one-stop-solution regarding the distribution of their convenience products.

Super Group Brands provides an end-to-end brand solution where it represents brands in the retail market on behalf of their owners. Clients of this business are international manufacturers or producers that require a local brand manager. Super Group has a controlling 50.1% interest in Super Group Brands.

African Logistics is the Group’s sub-Saharan African transport business, operating primarily between South Africa, Zimbabwe, Zambia, Malawi, DRC and Mozambique. Over 70% of its volumes come from commodity-related transport. It moves mining equipment and supplies north to the Zambian and DRC copper belt and transports mining products south for export. The balance of the volumes come from transporting agricultural products and aids for governments and multinational Non-Governmental Organisations.

Supply Chain Europe

SG IN tIME is a German-based logistics company and headquartered in Germany. SG IN tIME has 17 operating branches across Germany, Sweden, Hungary, Romania, the Czech Republic and Poland. It operates in the niche logistics sector of time-critical delivery services across 18 countries in Europe. Customers are in the automotive, electronics, hazardous goods, life sciences, pharmaceutical, temperature controlled, emergency blood and medical service industries. SG IN tIME owns proprietary dispatching software that optimises transport capacity utilisation. Super Group has a 75% equity interest in SG IN tIME.

Results for 2017

Supply Chain Africa

Revenue increased by 4.0% to R8 344.2 million (June 2016: R8 021.6 million) with EBITA and operating profit down by 3.2% to R482.2 million (June 2016: R497.9 million) and 2.3% to R448.5 million (June 2016: R459.1 million), respectively. The operating profit margin declined to 5.4% from 5.7% in the previous year. Profit before tax increased by 6.0% to R413.7 million (June 2016: R390.2 million).

The majority of Supply Chain Africa’s businesses delivered satisfactory performances with the exception of SG Consumer, SG Convenience and African Logistics. Both SG Consumer and SG Convenience reported a decline in revenue and profits on the back of lower volumes, primarily due to the consumer being under pressure, as well as the competitive environment. In addition, SG Convenience’s results were negatively impacted by the loss of the Monster energy drink distribution contract in July 2016 as a consequence of The Coca-Cola Company investing in Monster USA. African Logistics performed poorly as a direct result of the loss-making SuperLinks business, which was closed in 4Q2017.

SG Coal delivered a significantly improved performance compared to the prior year. VSc Solutions performed very well over the reporting period. SG Freight, Super Rent, SG Mobility, Digistics and Phola Coaches reported reasonable results under challenging trading conditions. Despite the competitive environment and challenging trading conditions.

Supply Chain Africa managed to secure a number of contracts across its businesses, however, margin pressure is being experienced when tendering for new or even existing contracts.

During the year, Super Group acquired the 49.2% minority interest in SG Coal for R167.3 million.

Supply Chain Europe

The results are not comparable as only eight months’ results were included for the year ended 30 June 2016. The results were acceptable given the market conditions. SG IN tIME managed to secure new contracts during the year. Revenue was R2.0 billion (June 2016 - eight months: R1.4 billion), EBITA was R194.5 million (June 2016 - eight months: R150.1 million), operating profit was R120.2 million (June 2016 - eight months: R96.3 million) and profit before tax was R78.1 million (June 2016 - eight months: R67.7 million). The operating profit margin declined to 6.0% from 6.9% in the previous year.

SG IN tIME’s results were negatively impacted by the strengthening of the Rand against the Euro on profit before tax to an amount of R7.5 million. In Euro-terms, SG IN tIME reported good growth on the back of a sales volume increase of 7.2% in the 2H2017. The amortisation of PPA intangibles for the period amounted to R74.3 million.

Risks and Opportunities

Supply Chain Africa

The risks identified are as follows:

Material risks  Management of these risks 
Competitive trading - undercutting prices on new contracts 
  • Identify new contracts
  • Not accepting loss-making contracts 
Fuel price fluctuations 
  • Changes in fuel prices are passed onto the customer 
Staff retention 
  • Payment of market-related salaries and meaningful performance-related incentives 
Foreign exchange fluctuations 
  • Invoicing in the same currency that the majority of costs are incurred 
Commodity prices - unstable 
  • Diversifying types of loads and transport routes 
African risk - political 
  • Appropriate ownership structures are in place 

The opportunities identified are as follows:

  • The economic pressure experienced by smaller supply chain operators is creating attractive acquisition opportunities in various areas of the supply chain.
  • Pursue selected logistics business proposals in and outside of sub-Saharan Africa.

Supply Chain Europe

The risks identified are as follows:

Material risks  Management of these risks 
Volkswagen recovery much slower than anticipated 
  • Securing new contracts
  • Cost cutting initiatives 
Brexit uncertainty renegotiations of trade agreements between Eurozone countries and the UK 
  • Developments in terms of timing and the renegotiation of trade contracts will be monitored closely by the Group 

The opportunities identified are as follows:

  • Continue to explore new business opportunities, particularly in the Southern and Eastern European environments.

Sustainability initiatives

Supply Chain Africa

Sustainability Committee

The Supply Chain Africa businesses continued to implement sustainability initiatives during the year under the guidance of the Sustainability Committee.

All businesses adhered to the Supply Chain Africa Code of Conduct, which details the principles and values of the Division when dealing with colleagues, customers and suppliers. This Code of Conduct encompasses Super Group’s expectations and requirements with regard to environmental and business sustainability issues.

For a comprehensive list of community involvement and activities, refer to the Sustainability Report.


Since setting its initial targets in 2010, Supply Chain Africa reduced emissions by a total of 5% (2016: 5%). Installation of low-energy lighting across the Group’s South African warehouses reduced electrical consumption in these facilities sites by more 50% and provided a 12-month payback on the capital expenditure. Supply Chain Africa is exploring further electrical savings across all operations.

Industry associations

  • Road Freight Association
  • Motor Industry Bargaining Council
  • Consumer Goods Council

Outlook for 2018

The outlook for the Supply Chain Division, especially for Supply Chain Africa, remains cautiously optimistic. This Division is core for Super Group and forms an essential component of the Group’s strategy. The strategic vision for Super Group is to create a focused supply chain business with above-average growth and margins, generating solid returns on invested capital.

Supply Chain Africa

Supply Chain Africa’s focus remains in line with its stated strategy of pursuing selected opportunities in higher growth niche markets. The Group will focus strongly on retaining its existing client and customer base as well as securing new long-term contracts. The new contracts secured, by particularly SG Consumer, during the financial year ended 30 June 2017 will contribute to this business’ growth going forward. The Group remains well positioned for any recovery in the African commodities business.

Supply Chain Europe

Subsequent to year-end, SG IN tIME acquired an 89.5% interest in Ader, a Spanish courier and express transport operator, for €11.6 million. Ader, founded in 1992, has 17 offices throughout Spain and 15 operations in the Eurozone. Ader specialises in the provision of dedicated and exclusive transport and logistics solutions. SG IN tIME was encouraged by a large OEM to establish a direct presence in Spain in order to service the increase in locally manufactured parts volumes in the Iberian environment. Ader has been SG IN tIME’s local network partner in Spain for 15 years.