Super Group's profit up; proposes bonus issue

SUPER Group, whose stock is now trading at $3.90, has proposed a one-for-one bonus share issue to boost trading liquidity. The reasons the maker of instant beverages cited for the move include boosting trading liquidity and reflecting growth and expansion of its business.

The group yesterday posted a 6 per cent increase in net profit for its fourth quarter ended Dec 31, 2013, on the back of a stronger gross profit margin, forex gains and a disposal gain. Net profit for the quarter was $22.6 million, up from $21.2 million from a year ago, the company said yesterday. This translated to earnings per share of 4.05 cents, up from 3.81 cents a year ago. Revenue was almost flat, with sales for Q4 at $153 million, against $155 million a year ago.

The group saw a 3 per cent lift in sales of products such as coffee and cup noodles to $91.3 million, though this was more than offset by the 7 per cent decline in sales of food ingredients such as non-dairy creamer to $62 million. Gross profit was up 8 per cent at $57.7 million, thanks to cost management.