Super Group's Q3 earnings slip 26% YoY to $7.4m
Chalk it up to weak currencies, lack of product launches.
Super Group's net profit stumbled 26% YoY to $7.4m due to weak regional currencies along with a lack of new product launches, according to a report by Maybank Kim Eng. Branded Consumer (BC) sales dipped 4% YoY while Food Ingredients (FI) slipped 11%.
Maybank Kim Eng notes, though, that Myanmar delivered surprisingly strong results as it contributed around 20% of BC sales. This bunks expectations of poor results due to kyat depreciation. Bolstered by pre-winter stocking, the China contribution of 10% of BC sales also marked it as an outlier performer.
Super estimably sustained both volume growth and value growth in challenging markets like Myanmar and Thailand in Q3. Notably, this was achieved without new products or significant advertising and promotional spending.
With new coffee products such as Essenso and Owl Kopitiam Roast & Ground set to be launched across all markets by 1H16 combined with reduced currency volatility, significant recovery may be in the cards for the company, posits Maybank Kim Eng.