Super Group posts 6% rise in Q4 net profit, proposes bonus issue

Instant food and beverage maker Super Group saw its net profit for the fourth quarter rise 6 per cent to $22.6 million, compared with a year ago.

The company also proposes a one-for-one bonus issue to reward shareholders for their loyalty and continuing support.

The higher profit was mainly due to higher gross profit margin and and higher other income.

Sales slipped 1 per cent to $153.3 million for the three months to Dec 31, mainly due to to lower food ingredients sales, but partially offset by higher branded consumer sales.

Food ingredients sales fell mostly because the group restructured its distribution network in China to better position itself for future growth, leading to lower sales in the China market.

Branded consumer sales increased due mainly to higher sales in the South-east Asia, China and Mongolia markets.

The group saw net profit rise 26 per cent to $99.9 million for the 12 months to Dec 31, while revenue grew 7 per cent to $557 million.

This was driven by the group's dual engine of growth, which are branded consumer sales and food ingredients sales.

Higher branded consumer sales in South-east Asia and China contributed, while food ingredients sales grew thanks to a demand from South-east Asia and maiden sales in new markets such as the Middle East and Europe.

Earnings per share for the quarter was 4.05 cents, up from 3.81 cents a year earlier, while net asset value was 83.74 cents, up from 71.55 cents.

It proposed a final dividend of seven cents a share, taking its full year payout to nine cents. This is 27 per cent higher than the payout for the year ended Dec 31, 2012.

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