Nov 25, 2011
Group posts reasonable results amid economic challengesBack
David Cleasby|Port|Africa|Angliss Greater China|Angliss Singapore|Bidvest Australia|Bidvest Group|Bidvest New Zealand|Industrial|Ports|Road|Roads|System|Transnet|Africa|Asia|Europe|Chile|Egypt|South Africa|Food Service Product Distribution|Logistics|Product|Transport|David Cleasby|Rail|Asia Pacific
© Reuse this
The group, which follows a decentralised business model, reported a 7.9% increase in revenue to R118.5-billion for the 2011 financial year, compared with R109.8-billion earned the year before.
This is despite prevailing tough trading conditions in most economies it operates in.
Cleasby says that, while Bidvest was impacted on by the economic uncertainty, it was able to capitalise on its global structuring. “Because we are a decentralised company operating in many different economies, we are only marginally impacted on by regional economic instabilities.”
The group has operations in Southern Africa, Europe and the Asia Pacific region. Cleasby says operating in well-performing economies, such as those in Asia, has helped to ease the pressure experienced by companies based in countries that are in significant financial crises.
Bidvest operates food service product distribution companies in the Asia Pacific region, namely Bidvest Australia, Bidvest New Zealand, Angliss Singapore and Angliss Greater China.
Revenue in the Asia Pacific region grew by 11.5% to R19.6-billion, while trading profit increased by 14.2% to R833.1-million in the 2011 financial year.
Further, Bidvest’s European businesses are experiencing economic pressure but continue to perform fairly well. Bidvest believes trading conditions in this region will improve over time.
Meanwhile, as part of the group’s diversification and decentralisation strategy, it is in the process of acquiring businesses in Egypt and Chile. “At Bidvest, we will continue to bolt on markets and enlarge the company’s food services footprint,” concludes Cleasby.
This results in congestion on the roads and at ports, affecting delivery times.
Cleasby says Bidvest is aware of the promise by government to improve the railway system, adding that it would welcome this. “Industrial bulk commodities should be transported by rail, so we would appreciate government’s investment in railway resuscitation.”
In October, State-owned freight logistics group Transnet announced that it had brought forward R6.1-billion in capital expenditure previously earmarked for the tail-end of its five-year rolling budget into the next two years to improve rail and port efficiencies.
Edited by: Chanel de Bruyn© Reuse this Comment Guidelines (150 word limit)
Other Corporate Profiles News
Giving Industry Air To those who use it, compressed air is a vital cog in their business. Whether in a factory, a hospital, a mine or any other environment, no matter how much compressed air is used, it’s always a critical commodity. “And that’s why our...
Goscor Power Products (GPP) has built an enviable reputation across a wide range of sectors, including construction, agriculture, mining and general industry where it distributes world-class products including pumps, generators, welders, firefighters, engines,...
When it comes to Mobile Elevating Work Platforms (MEWPs) there is little doubt about the professionalism and expertise of Goscor Hi-Reach MD George Landsberg and his team. “Since inception, our goal has been to be the preferred supplier of MEWPs in Southern Africa...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...
Next ArticleFlagship subsidiary experiences exceptional growth