Super Group

Super Group: to lift halt at 1.30pm. 1Q13 revenue at $132.4m, +9% yoy. Food ingredients (29% of revenue) was the main driver, up 33% yoy to $38.5m, boosted by increased pdtn capacity and strong demand for soluble coffee powder and non-dairy creamer from the Asia mkts, namely Indonesia and Taiwan. Branded consumer sales (remaining 71% of revenue) was flat, as improvements in Thai, Philippines and China market were offset by lower sales into other SE Asia mkts. Net profit at $22.1m, +25% yoy, on the back of a 3 ppt boost in gross margin to 37%, thanks to effective costs mgt and operational efficiencies arising from increased pdtn capacity. In line with the group’s strategy to focus on its core business, Super announced 6 May, that it will dispose its 35.3% stake in Sun resources, an associated co engaged in property devt. The total consideration amounts to $26m and will result in a gain of approx $16m upon completion. Mgt believes its rebranding initiatives will help it to stay relevant to consumers and elevate Super as a leading brand in the competitive Asia mkts. Adds it is familiar with raw material costs and currency fluctuations and will take appropriate actions to mitigate their impact on the group’s businesses. The stock trades at 28.8x annualized 1Q13 P/E. This compares with VizBranz’s 14.4x P/E, and Food Empire’s 14.0x.