Struggling Super Group losing out in the battle for Asian consumers

It can’t gain market share from Nestlé.

Super Group needs to develop new products fast if it wants to gain market share from food and beverage giant Nestlé.

According to a report by RHB, Super Group is struggling with the triple whammy of intense competitive pressure, weak sales, and thinning profit margins due to higher costs.

“We believe competitive pressure, especially from market leader, Nestle, remains intense in its key branded consumer markets. With a lack of growth in mature core markets such as Singapore and Malaysia, players are likely to continue jostling for market share,” said the report. 

Meanwhile, weak regional currencies will continue to pull down the group’s revenue and margins, which are reported in Singapore dollars.

“Without a breakthrough in major new products or markets, substantial profit growth is unlikely to materialize at this stage. In the near-term, investment costs to promote its new Essenso MicroGround Coffee may put pressure on margins,” said RHB.