Super Group doubles Q2 net profit to $36.5 million on strong food ingredient sales

SUPER Group, famous for its three-in-one instant coffee beverage, has doubled its second quarter net profit to $36.5 million from $17.5 million.

Revenue for the three months to June 30 rose by 23 per cent to $138.3 million.

Food ingredient sales continued to lead the charge by registering a 65 per cent increase to $46 million, from increased production capacity and robust demand for the group's food ingredients in the Asia markets, namely Indonesia, Taiwan and the Philippines.

Branded consumer sales increased by 10 per cent to $92.4 million, due mainly to higher sales into the Southeast Asia markets, particularly Myanmar, Malaysia and the Philippines.

The increase in net profit was due mainly to the higher sales revenue, higher gross profit margin and higher other income.

Gross profit margin increased by 3 percentage points to 39 per cent, due mainly to effective cost management and operational efficiencies arising from increased production capacity.

Super increased its production capacity for spray-dried soluble coffee powder by an additional 5,000 metric tonne in November to 15,000 per annum in view of strong demand for the food ingredient.

Earnings per share swelled to 6.55 cents from 3.14 cents previously while net asset value per share firmed to 78.71 cents compared to 71.55 cents as at Dec 31.

An unchanged interim dividend of two cents a share was declared.