Trade, distribution and services group Bidvest has reported a 15% jump in revenue to R153.4-billion for the financial year ended June 30. Profit for the year was up 6.6% at R5.05-billion.

Bidvest Europe and Bidvest Asia Pacific made the biggest contributions to these positive numbers, on the back of organic and acquisitive growth. The weak rand also assisted.

Bidvest derived 38.8% of its trading profit from outside South Africa.

The group’s trading margin declined to 5%, down from 5.3%, on higher contribu- tions from lower-margin businesses, such as automotive retailing, and the marked decline in trading profit at some foreign operations.

Net debt increased to R4.5-billion, up from R3.6-billion.

In its results statement, Bidvest says it delivered “solid trading results . . . against a backdrop of challenging trading environments in many geographies”.

Bidvest South Africa’s results are viewed as “pleasing” despite competitive markets and subdued economic activity, notes CE Brian Joffe.

Revenue increased 10.5% to R69.3- billion, with trading profit up 10.5% to R4.2-billion.

In the automotive industry, Bidvest exited what it termed the nonperforming Peugeot, Citroen and Volvo franchises.

Bidvest Asia Pacific achieved revenue growth of 21.8% to R28.6-billion. Trading profits increased by 21.1% to R1.2-billion.

Bidvest Europe delivered a 17.1% increase in revenue to R48.2-billion. Trading profit increased 2.6% to R936.2-million.

Bidvest Namibia recorded a small decline in trading profit as a result of the uncertain market conditions in its fishing operations.

Revenue rose to R3.6-billion, up from R3-billion. However, trading profit fell 7.1% to R592.2-million.

Bidvest says the economic confidence in many of the geographies within which it operates is fragile, with investors becoming risk averse to emerging markets.

In South Africa, the group’s operations “remain positive”, with innovation and continued diversification key drivers for growth.

“Weakness in the rand and the likely spike in inflation may present some cost pressures, but these pressures also give rise to trading opportunities,” comments Joffe.

“Our divisional teams continue to seek out acquisitive opportunities . . . and Bidvest continues to use its South African businesses as a base to harness product- related opportunities into Africa. Further progress in expanding our African footprint is expected.”

In the Asia Pacific region, there are further consolidation opportunities, which are being aggressively pursued.

In Europe, despite the low growth environment, further opportunities to add new product ranges and expand local footprints through organic and acquisitive growth remain a focus across all Bidvest businesses.

Bidvest Namibia will continue to pursue strategic growth across the commercial and fishing businesses.

Generally speaking, Joffe says, Bidvest has ample capacity to fund both organic and acquisitive growth.

Bidvest declared a final gross cash dividend of 396 c per ordinary share for the year ended June 30.