Bidcorp records R73m damages from recent riots
South Africa's Bid Corporation (Bidcorp) has taken a hit of about R73-million from recent riots that damaged its inventory, infrastructure and vehicles, the food service company said on Friday.
Several businesses, especially in the provinces of KwaZulu-Natal and Gauteng, bore the brunt of last month's unrest that was triggered by the jailing of former President Jacob Zuma for contempt of court.
Bidcorp's Cornubia site outside Durban that houses Bidfood South Africa (BFSA), Crown Food Group (CFG) and Chipkins Puratos (CP) distribution facilities were looted and badly damaged, Chief Executive Bernard Berson said on a conference call.
Two of CFG's retail factory marts were also vandalised, while distribution vehicles parked on site were either damaged, burned or stolen.
The estimate excludes the loss of profits. Bidcorp is adequately insured with Sasria, a state-owned insurer covering political violence, for asset damage and has a separate policy for loss of profits, Berson said.
The impact on sales for July in the KwaZulu-Natal and Gauteng provinces has been estimated at R16-million for BFSA and R10-million for CFG as customers were impacted and did not trade, but the overall impact for the 2022 financial year is not likely to be material.
After market close on Thursday Bidcorp said it expects its headline earnings per share from continuing operations to rise by between 13% and 21% in the year ended June 30.
The company said on Thursday that it had uncovered fraud involving manipulation of accounts and misappropriation of inventories in Miumi Hong Kong by the 10% minority shareholder of that business, certain employees and third party service providers.
Berson said on Friday the company had beefed up its surveillance in other businesses.
At 0755 GMT shares were trading 2.19% lower.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation