2 Key Insights to Learn from the Management Team of Super Group Ltd

Super Group Ltd (SGX: S10) is a leading instant food and beverage (F&B) brand owner with operations primarily in Asia. Perhaps best known in Singapore for its namesake Super-branded instant coffee products, Super Group has two main business segments: Branded Consumer (BC) sales and Food Ingredient (FI) sales.

A few years back, the father and son duo of David Teo and Darren Teo, Super Group’s chairman and assistant general manager, respectively, were featured in an interview series by International Enterprise Singapore.

The interview might not be the most recent, but I thought it contained good insights about Super Group which may help investors better understand the company. Here are two:

Perseverance for growth

“In China, we made losses for four to five years before we could turn the business around. We also have a lot of other business and products in other countries which support that.

You can’t shut a business down just because it failed in the first few years, it could break even in the third year and start making money in the fourth.”

In the quote above, David Teo highlighted the importance of perseverance when it comes to venturing overseas by pointing out that Super Group had taken a few years to get its China business on track. He also touched on the importance of having different businesses in multiple geographies to keep the company afloat as it pursues future growth.

Super Group currently has its business spread out across multiple countries within Asia such as Singapore, Malaysia, Thailand, China, Myanmar, the Philippines, and more.

The importance of reputation

“Having a strong manufacturing presence in China benefited Super when the country was rocked by a food scandal in 2008 in which local milk powder products were found to be laced with the industrial chemical melamine.

Super’s reputation for manufacturing products under stringent quality control “gave Super the chance to expand in our ingredients business as firms shied away from China”, Mr Darren Teo said.”

Perseverance in China appears to have paid off for Super Group when China was rocked by the melamine scandal. The company’s reputation for stringent quality control could have benefitted from this event, as Darren Teo pointed out. You can see from the graph below that Super Group’s business in East Asia (which includes China) had grown over the past few years:

super group revenue country segment
Source: Super Group’s Earnings Report

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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.