JSE-listed Bidcorp reported a 32.5% year-on-year increase in its headline earnings a share to R10.80, while basic earnings a share increased by 26.1% year-on-year to R10.34 for the year ended June 30.
The company, which was spun out of Bidvest and listed on the JSE in May, announced a 20.8% year-on-year increase in revenue to R140.5-billion for the year under review, owing to the contributions from the UK and Europe, reflecting organic growth and currency effects.
“Bidcorp’s businesses continue to perform well across the world, with solid organic growth in home currencies in very low inflation environments, benefiting from market share gains and margin improvement,” said CEO Bernard Berson.
Gross profit percentage increased to 20.8%, reflecting the benefit of the strategy of focusing on the correct mix of business.
Group trading profit increased by 26.1% to R5.2-billion and the trading margin increased to 3.7%, reflecting the operational focus of growing the independent trade and rebalancing the customer portfolio in many geographies.
Growth in out-of-home eating, where customers’ seek quality products, differentiation of service and innovative solutions, is expected to continue. Our philosophy remains exploiting the service element by remaining close to our customers, evolving the product range and offering high levels of service.
DIVISIONAL BREAKDOWN
Bidcorp Food Africa’s sales and trading profits exceeded budget, as did trading profits; however, margin pressure intensified in highly competitive trading conditions and cost pressures were evident owing to high inflation and exchange rate fluctuations.
Net sales growth exceeded food inflation, driven by pleasing gains at Bidcorp Food Ingredients (BFI) across independent channels and Bidcorp Foodservice (BFS) in the independent and national account channels.
Bidcorp Bakery Solutions (BBS) continued its penetration of the retail and franchise sector, while Bidcorp Food Exports (BFE) achieved substantial growth in Zambia.
“BFS’s growth was all organic. The independent and national account segments both achieved double-digit growth, which was enhanced by a focus on developing our ecommerce platform and sales of private label products,” Berson said, adding that the company opened a new KwaZulu-Natal depot.
BFI drove growth by focusing on its own manufactured lines and product brands and strong growth was realised in almost all product categories through the trading operations.
BBS had a good year, with focus on innovation and product development across its own manufactured products.
Almost all trading branches performed well and the factory achieved efficiency improvements, building momentum in the last quarter.
BFE made market share gains in sub-Saharan Africa.
Strong performance by the Zambian operation is expected to continue.