Cash-rich Super Group poised for acquisition spree, say analysts

Its net cash stands at $116m.

The supermarket chain may be up for more acquisitions to drive its growth, as it is currently sitting on hefty net cash, according to reports.

According to a report by Maybank Kim Eng, it has a net cash of $116m and generates more than $60 m in operational cashflow as well as $20m in capex a year.

“While we see no catalysts yet, cash-rich Super is attractive as an acquisition target, or it could use its cash to acquire growth or capability,” the report noted.

Meanwhile, its rising hefty net cash only masks its lacklustre growth. “Branded Consumer (BC) fell 8% YoY as Super supported its long-time Myanmar distribution partner with lower prices following the Kyat’s drop. Myanmar was the biggest underperforming 2Q market, down an estimated 22% YoY,” the report added.