Diversified industrial group Bidvest on Monday reported a rise in normalised earnings for the six months to December 2012; however, a one-off profit from the partial sale of Bidvest’s investment in Mumbai International Airport dragged down earnings for the period.
Normalised headline earnings a share (HEPS) reached 725.1c during the period under review, an 18.2% increase compared with the normalised HEPS of 613.4c a share recorded in the interim period ended December 2011.
The JSE-listed group achieved 24.5% higher normalised basic earnings a share (EPS) at 724.4 c, compared with normalised EPS of 581.8c reported in the corresponding period in the prior year, Bidvest CEO Brian Joffe said.
Incorporating the R399.1-million sale, HEPS fell 2.3% from the 742.3c recorded in the six-month period to December 2011, while basic EPS rose 1.9% from 710.8c in the corresponding period in 2011.
Bidvest achieved revenue of R75.4-billion during the first half of the year – up 11.9% from the R67.3-billion reported in the six months to December 2011.
Profit during the period rose by 1.1% from R2.35-billion in the six months to December 2011, to R2.37-billion in the period under review.
Trading profit increased by 8.3% to R3.6-billion during the first half of 2012, from R3.3-billion achieved in the corresponding period the year before.
The company’s trading margin decreased to 4.7% in the 2012 interim period, from the 4.9% reported in the first half of 2011. Bidvest attributed this to a relative increase in the contribution of lower margin activities, such as forwarding and clearing and automotive retailing, as well as a decline in trading profits in certain operations.
“Our financial position remains strong and the group is well-capitalised. Bidvest’s attitude to gearing remains conservative and the group retains adequate borrowing capacity,” Joffe commented.
Bidvest declared a gross cash dividend of 324c for the interim period.