Super Group

[Tiggerbee]

The company end-year result announced. Here is the summary extracted. A 1-for-1 bonus share is awarded.

(not vested)
----------
 FY13 revenue increased 7% YoY to S$557.0m on the back of growth in Branded Consumer and Food Ingredients sales
 FY13 net profit up 25% YoY to S$103.4m
 Final dividend of 7.0 SG cents per share, increasing total dividend for the year to 9.0 SG cents per share, an increase of 27% YoY
 The Company is proposing to undertake a bonus issue on the basis of 1 bonus share for every 1 existing share in the capital of the Company held by the shareholders

Ref: http://infopub.sgx.com/FileOpen/Super_Gr...eID=275751

Stripping out the other income gains (non recurring), operating profit is actually down 7.2% year on year. Selling and distribution expenses had been rising for the past few quarters on higher marketing and promotional costs. Revenue growth had almost stalled for 2 straight quarters.

I had been seeing Super's white coffee on promotional offers for the past few months to compete with the promotions by Nestle and Oldtown. That's probably why the above costs are persistently high and which may become a norm.

(Not vested and don't intend to vest)

The higher marketing and promotional costs were due to its rebranding activities with a new logo and packagings. The increased costs might not be persistent.

(not vested)

Every week, I will make it a point to check the instant coffee shelves in NTUC Fair Price. I'm vested in Oldtown plus I'm a coffee drinker. For the past 2-3 quarters, Super's white coffee products had been on promotional offer. It started with buy 2 get 1 free (for about $12+) when they launched their new logo and packagings. Later the offer was retracted for 1-2 months, before they launched the buy 2 for $10+ offer. OldTown and Nestle joined in the price war when they also launched the buy 2 for $10+ offer. Just last week, Super had re-launched the buy 2 get 1 free offer for $12+ again to boost sales. Ah Huat has just joined the price war with a $9.95 for 2 pack offer. I expect the price war to persist for some time as the major brands fight for market share. And with coffee and sugar prices on rising trend, Super will be coping with higher COGS and higher expenses for the next few quarters.

I used to be vested in Super but had exited about 6 mths back as the company was not able to grow their branded business at double digit growth rate and their raw materials biz growth engine was faltering. Their recent performance no longer justify the 20x PE they used to command. There are more headwinds for Super than tail winds. I'm vested in Oldtown, which had grown their FMCG biz more than 20% in 2013 (where Super only grew theirs by less than 10%).

And Oldtown had penetrated the Thailand market, which is Super's stronghold. It had also penetrated the Greater Asia markets of Taiwan, HK and China. All these were achieved in 2013.

[greengiraffe]

The company end-year result announced. Here is the summary extracted. A 1-for-1 bonus share is awarded.

(not vested)
----------
 FY13 revenue increased 7% YoY to S$557.0m on the back of growth in Branded Consumer and Food Ingredients sales
 FY13 net profit up 25% YoY to S$103.4m
 Final dividend of 7.0 SG cents per share, increasing total dividend for the year to 9.0 SG cents per share, an increase of 27% YoY
 The Company is proposing to undertake a bonus issue on the basis of 1 bonus share for every 1 existing share in the capital of the Company held by the shareholders

Ref: http://infopub.sgx.com/FileOpen/Super_Gr...eID=275751

Stripping out the other income gains (non recurring), operating profit is actually down 7.2% year on year. Selling and distribution expenses had been rising for the past few quarters on higher marketing and promotional costs. Revenue growth had almost stalled for 2 straight quarters.

I had been seeing Super's white coffee on promotional offers for the past few months to compete with the promotions by Nestle and Oldtown. That's probably why the above costs are persistently high and which may become a norm.

(Not vested and don't intend to vest)

The higher marketing and promotional costs were due to its rebranding activities with a new logo and packagings. The increased costs might not be persistent.

(not vested)

Every week, I will make it a point to check the instant coffee shelves in NTUC Fair Price. I'm vested in Oldtown plus I'm a coffee drinker. For the past 2-3 quarters, Super's white coffee products had been on promotional offer. It started with buy 2 get 1 free (for about $12+) when they launched their new logo and packagings. Later the offer was retracted for 1-2 months, before they launched the buy 2 for $10+ offer. OldTown and Nestle joined in the price war when they also launched the buy 2 for $10+ offer. Just last week, Super had re-launched the buy 2 get 1 free offer for $12+ again to boost sales. Ah Huat has just joined the price war with a $9.95 for 2 pack offer. I expect the price war to persist for some time as the major brands fight for market share. And with coffee and sugar prices on rising trend, Super will be coping with higher COGS and higher expenses for the next few quarters.

I used to be vested in Super but had exited about 6 mths back as the company was not able to grow their branded business at double digit growth rate and their raw materials biz growth engine was faltering. Their recent performance no longer justify the 20x PE they used to command. There are more headwinds for Super than tail winds. I'm vested in Oldtown, which had grown their FMCG biz more than 20% in 2013 (where Super only grew theirs by less than 10%).

And Oldtown had penetrated the Thailand market, which is Super's stronghold. It had also penetrated the Greater Asia markets of Taiwan, HK and China. All these were achieved in 2013.

Wah say... I must salute you. You are simply adding value to Peter Lynch's "One Up On Wall Street" - observed what you are investing in.

Peter Lynch's method is particularly useful for consumer product companies whereby one can easily conduct channel checks. However, I must qualify that Peter Lynch's method never seem to be applicable at Osim's outlet...

Anyway, well done TB

GG

[investor101]

I like OldTown White Coffee. Which counter is it listed under? KL stock exchange?

The company end-year result announced. Here is the summary extracted. A 1-for-1 bonus share is awarded.

(not vested)
----------
 FY13 revenue increased 7% YoY to S$557.0m on the back of growth in Branded Consumer and Food Ingredients sales
 FY13 net profit up 25% YoY to S$103.4m
 Final dividend of 7.0 SG cents per share, increasing total dividend for the year to 9.0 SG cents per share, an increase of 27% YoY
 The Company is proposing to undertake a bonus issue on the basis of 1 bonus share for every 1 existing share in the capital of the Company held by the shareholders

Ref: http://infopub.sgx.com/FileOpen/Super_Gr...eID=275751

Stripping out the other income gains (non recurring), operating profit is actually down 7.2% year on year. Selling and distribution expenses had been rising for the past few quarters on higher marketing and promotional costs. Revenue growth had almost stalled for 2 straight quarters.

I had been seeing Super's white coffee on promotional offers for the past few months to compete with the promotions by Nestle and Oldtown. That's probably why the above costs are persistently high and which may become a norm.

(Not vested and don't intend to vest)

The higher marketing and promotional costs were due to its rebranding activities with a new logo and packagings. The increased costs might not be persistent.

(not vested)

Every week, I will make it a point to check the instant coffee shelves in NTUC Fair Price. I'm vested in Oldtown plus I'm a coffee drinker. For the past 2-3 quarters, Super's white coffee products had been on promotional offer. It started with buy 2 get 1 free (for about $12+) when they launched their new logo and packagings. Later the offer was retracted for 1-2 months, before they launched the buy 2 for $10+ offer. OldTown and Nestle joined in the price war when they also launched the buy 2 for $10+ offer. Just last week, Super had re-launched the buy 2 get 1 free offer for $12+ again to boost sales. Ah Huat has just joined the price war with a $9.95 for 2 pack offer. I expect the price war to persist for some time as the major brands fight for market share. And with coffee and sugar prices on rising trend, Super will be coping with higher COGS and higher expenses for the next few quarters.

I used to be vested in Super but had exited about 6 mths back as the company was not able to grow their branded business at double digit growth rate and their raw materials biz growth engine was faltering. Their recent performance no longer justify the 20x PE they used to command. There are more headwinds for Super than tail winds. I'm vested in Oldtown, which had grown their FMCG biz more than 20% in 2013 (where Super only grew theirs by less than 10%).

And Oldtown had penetrated the Thailand market, which is Super's stronghold. It had also penetrated the Greater Asia markets of Taiwan, HK and China. All these were achieved in 2013.

[Tiggerbee]

I like OldTown White Coffee. Which counter is it listed under? KL stock exchange?

The company end-year result announced. Here is the summary extracted. A 1-for-1 bonus share is awarded.

(not vested)
----------
 FY13 revenue increased 7% YoY to S$557.0m on the back of growth in Branded Consumer and Food Ingredients sales
 FY13 net profit up 25% YoY to S$103.4m
 Final dividend of 7.0 SG cents per share, increasing total dividend for the year to 9.0 SG cents per share, an increase of 27% YoY
 The Company is proposing to undertake a bonus issue on the basis of 1 bonus share for every 1 existing share in the capital of the Company held by the shareholders

Ref: http://infopub.sgx.com/FileOpen/Super_Gr...eID=275751

Stripping out the other income gains (non recurring), operating profit is actually down 7.2% year on year. Selling and distribution expenses had been rising for the past few quarters on higher marketing and promotional costs. Revenue growth had almost stalled for 2 straight quarters.

I had been seeing Super's white coffee on promotional offers for the past few months to compete with the promotions by Nestle and Oldtown. That's probably why the above costs are persistently high and which may become a norm.

(Not vested and don't intend to vest)

The higher marketing and promotional costs were due to its rebranding activities with a new logo and packagings. The increased costs might not be persistent.

(not vested)

Every week, I will make it a point to check the instant coffee shelves in NTUC Fair Price. I'm vested in Oldtown plus I'm a coffee drinker. For the past 2-3 quarters, Super's white coffee products had been on promotional offer. It started with buy 2 get 1 free (for about $12+) when they launched their new logo and packagings. Later the offer was retracted for 1-2 months, before they launched the buy 2 for $10+ offer. OldTown and Nestle joined in the price war when they also launched the buy 2 for $10+ offer. Just last week, Super had re-launched the buy 2 get 1 free offer for $12+ again to boost sales. Ah Huat has just joined the price war with a $9.95 for 2 pack offer. I expect the price war to persist for some time as the major brands fight for market share. And with coffee and sugar prices on rising trend, Super will be coping with higher COGS and higher expenses for the next few quarters.

I used to be vested in Super but had exited about 6 mths back as the company was not able to grow their branded business at double digit growth rate and their raw materials biz growth engine was faltering. Their recent performance no longer justify the 20x PE they used to command. There are more headwinds for Super than tail winds. I'm vested in Oldtown, which had grown their FMCG biz more than 20% in 2013 (where Super only grew theirs by less than 10%).

And Oldtown had penetrated the Thailand market, which is Super's stronghold. It had also penetrated the Greater Asia markets of Taiwan, HK and China. All these were achieved in 2013.

Yup, it's listed in Bursa.

[retnuoc]

I have invested in Oldtown, and follow up Power Root (Ah Huat coffee maker) in Bursa. Coincidentally, 2 of them experience similar price weakness as Super. Is it mean that the overall market is changing their expectation toward coffee or F&B share valuation?

[Tiggerbee]

I have invested in Oldtown, and follow up Power Root (Ah Huat coffee maker) in Bursa. Coincidentally, 2 of them experience similar price weakness as Super. Is it mean that the overall market is changing their expectation toward coffee or F&B share valuation?

Oldtown stock price had already rebounded from a 1 year low of 1.82 to 1.97 today. It had clearly outperformed Super in the last 2 weeks. The stock had actually bottomed and rebounded after the release of its Q42013 earnings results. I had bought more when it dipped below 1.9.

[investor101]

I have invested in Oldtown, and follow up Power Root (Ah Huat coffee maker) in Bursa. Coincidentally, 2 of them experience similar price weakness as Super. Is it mean that the overall market is changing their expectation toward coffee or F&B share valuation?

Oldtown stock price had already rebounded from a 1 year low of 1.82 to 1.97 today. It had clearly outperformed Super in the last 2 weeks. The stock had actually bottomed and rebounded after the release of its Q42013 earnings results. I had bought more when it dipped below 1.9.

So did I. I bought into Oldtown. I like the concept of the local kopi drinking business, and want a piece of the action.

I wonder how Super would fare, if it also opened up coffee houses for its coffee and tea products, just like Oldtown did. Super is much bigger than Oldtown, and can afford to expand aggressively in this direction. It is also good publicity for their products.

[CityFarmer]

I have invested in Oldtown, and follow up Power Root (Ah Huat coffee maker) in Bursa. Coincidentally, 2 of them experience similar price weakness as Super. Is it mean that the overall market is changing their expectation toward coffee or F&B share valuation?

Oldtown stock price had already rebounded from a 1 year low of 1.82 to 1.97 today. It had clearly outperformed Super in the last 2 weeks. The stock had actually bottomed and rebounded after the release of its Q42013 earnings results. I had bought more when it dipped below 1.9.

So did I. I bought into Oldtown. I like the concept of the local kopi drinking business, and want a piece of the action.

I wonder how Super would fare, if it also opened up coffee houses for its coffee and tea products, just like Oldtown did. Super is much bigger than Oldtown, and can afford to expand aggressively in this direction. It is also good publicity for their products.

Interesting input. I don't know much about Oldtown, and its strategy of coffee houses. May be time to re-open the Super file and do a review.

(not vested in both Super and Oldtown)

[Tiggerbee]

I have invested in Oldtown, and follow up Power Root (Ah Huat coffee maker) in Bursa. Coincidentally, 2 of them experience similar price weakness as Super. Is it mean that the overall market is changing their expectation toward coffee or F&B share valuation?

Oldtown stock price had already rebounded from a 1 year low of 1.82 to 1.97 today. It had clearly outperformed Super in the last 2 weeks. The stock had actually bottomed and rebounded after the release of its Q42013 earnings results. I had bought more when it dipped below 1.9.

So did I. I bought into Oldtown. I like the concept of the local kopi drinking business, and want a piece of the action.

I wonder how Super would fare, if it also opened up coffee houses for its coffee and tea products, just like Oldtown did. Super is much bigger than Oldtown, and can afford to expand aggressively in this direction. It is also good publicity for their products.

Interesting input. I don't know much about Oldtown, and its strategy of coffee houses. May be time to re-open the Super file and do a review.

(not vested in both Super and Oldtown)

Oldtown rose 3 sen to $2.01 even though it's the XD date for 3 sen dividend today.

Some recent media news from their IR web site.

http://oldtown.irplc.com/medianews.htm?f...032014.pdf

http://oldtown.irplc.com/medianews.htm?f...032014.pdf

[Tiggerbee]

I have invested in Oldtown, and follow up Power Root (Ah Huat coffee maker) in Bursa. Coincidentally, 2 of them experience similar price weakness as Super. Is it mean that the overall market is changing their expectation toward coffee or F&B share valuation?

Oldtown stock price had already rebounded from a 1 year low of 1.82 to 1.97 today. It had clearly outperformed Super in the last 2 weeks. The stock had actually bottomed and rebounded after the release of its Q42013 earnings results. I had bought more when it dipped below 1.9.

So did I. I bought into Oldtown. I like the concept of the local kopi drinking business, and want a piece of the action.

I wonder how Super would fare, if it also opened up coffee houses for its coffee and tea products, just like Oldtown did. Super is much bigger than Oldtown, and can afford to expand aggressively in this direction. It is also good publicity for their products.

I think Super did open an Owl cafe in Star Vista. But aside from it, they do not have any plans to open more cafe outlets.