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17 February 2013 | Adam Leach
Strike action by lorry drivers in South Africa meant profits at the supply chain division of logistics and fleet company Super Group were 5 per cent lower than expected, according to the company’s interim results.
In its results for the six months to the end of 31 December 2012 published this week, the South African business reported a 27.7 per cent increase in group-wide profits to R2.5 billion ($284 million). The supply chain division of the company, which incorporates Supply Chain South Africa and African Logistics, also reported an increase in profit for the period, up from R126 million ($14.3 million) in the same period of 2011 to R172 million ($19.5 million).
However, this rise was limited as a result of strike action called by the Road Freight Association, which the company said had affected profits by 5 per cent. In September last year 20,000 truck drivers stopped work in protest at what they saw as unfairly low wages across the logistics industry.
“Disruptions to Super Group’s supply chain business as a result of the Road Freight Association strike in September 2012 resulted in a 5 per cent reduction in divisional revenue and profit for the period,” the results said.
The group also identified lower than expected mining activity in the Democratic Republic of Congo, also partly down to labour unrest, which caused further disruptions that reduced profits.