JSE-listed Bid Corporation (Bidcorp), the food services unit that was unbundled from international services, trading and distribution firm Bidvest last year, delivered a distribution of 250c a share for the six months to December 31.

The reported financials show “very pleasing” results for the first half of the year under review in relation to the comparable half-year, largely on account of Bidcorp's unbundling from Bidvest in May 2016 and subsequent JSE listing.

During the six months under review, basic earnings and headline earnings a share increased by 20.7% and 20.3% respectively to 600.3c apiece.

Bidcorp’s trading profit increased by 15.7% to R2.8-billion during the first half of the financial year and the trading margin improved from 2.6% in the corresponding six months the year before to 4.2% in the six months to December 2016, owing to an operational focus on growing independent trade and rebalancing the customer portfolio.

The gross profit percentage also ticked up to 21.4%, reflecting the benefit of focusing on the correct mix of business.

The group’s overall half-year net revenue of R67.8-billion, a contraction on the R68.2-billion reported in the pro forma corresponding prior period, was impacted by the ongoing “deliberate and planned exit” of some large contract businesses in various geographies.

“Bidcorp's businesses continue to perform well across all geographies, driven by good organic growth in home currencies and benefiting from market share gains,” the company said in the financial update to shareholders.

In addition, a number of smaller bolt-on acquisitions, totalling R495.8-million, were concluded in Australia, Brazil, Belgium, Italy and the UK, with Bidcorp now keeping a firm eye on opportunities through further bolt-on acquisitions to expand geographic reach and product range extension, complemented by organic growth through a focus on the appropriate business mix.

“Our financial position is strong, cash generation is expected to remain robust, and we retain significant headroom to accommodate expansion opportunities, both acquisitive and organic,” the company said, adding that larger acquisitions could be considered to unlock entry into new markets.

“Bidcorp's focus remains on realising the potential that exists in its current foodservice operations, as well as acquisitive growth opportunities.”

In line with this, Bidcorp kicked off a global rebranding exercise, trading as ‘Bidfood’, to reinforce its image as "value-add food people”.

“Our foodservice businesses worldwide are executing on the strategy of rebalancing the exposure between contract, national and independent customers in their respective markets. We see our future as a foodservice provider, as opposed to a logistics operator,” Bidcorp concluded.