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4 Useful Things An Investor Should Know About Super Group Ltd.

Super Group Ltd. (SGX: S10) reported its third quarter earnings recently. Super Group is a leading instant food and beverage brand owner with operations primarily in Asia. The company’s business can be segmented into branded consumer (BC) products and food ingredients (FI). You can read more about Super Group here.

Super Group is also one of the cool companies in Singapore which shares a webcast (the link is here) for the discussion of their financial results. Below are four useful (additional) things I learned from listening to Super Group’s webcast:

1. Despite the 6% year-on-year fall in sales at the BC segment, Super Group still considers the segment to be its main pillar of growth for the long term. The FI business exists to compliment the BC segment. Super Group is also reorganising its sales and marketing team around brand managers to drive growth for the future. Besides this, management is looking to expand the company’s BC segment to the Middle East and Eastern European countries.

2. Sales in Singapore dipped mainly due to the relocation of the Singapore packaging plant to Malaysia. This factory move also affected its export sales to other countries outside of Asia. We should observe to see if this is a one-off problem for the quarter.

3. As mentioned before, its FI segment enables Super Group to build and test taste profiles for its customers. The company’s management team also mentioned that the FI segment can shorten the development lead-time for new products, and allow them to be more “adventurous” in product development. In our previous Foolish visit to Super Group’s factory, they served coffee which tasted like potatoes.

4. The non-dairy creamer (NDC) piece of the FI business segment grew revenue by 18% year-on-year in the recent quarter. Within NDC, liquid glucose syrup solids (LGSS) is a raw material which makes up 60% of its cost. This is the reason why Super Group has constructed a LGSS plant in China to bring the manufacture of key raw ingredients in-house.

Foolish takeaway

To buy and hold a company for the long term also means keeping up with developments in the company. The access to management teams via webcast gives the Foolish investor a fair chance to judge for themselves on whether they would like to be invested alongside the management teams that they have chosen. It also helps us put together a more complete thesis around the company and keep up with developments in its industry.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong owns shares in Super Group.