Bidvest Boosts Earnings Outlook: Strong Growth in FY2023

  • Bidvest Group projects robust earnings growth for FY2023, with HEPS expected to increase by 22-26%.
  • Normalised HEPS anticipated to grow by 15-19%, excluding certain costs and reflecting operational strength.
  • Group EPS forecasted to rise 15-19%, showcasing prudent financial management despite specific events in the base year.
Bidvest Group

Bidvest Group Limited (“Bidvest”) has just released its trading statement for the fiscal year ending June 30, 2023. As required by the Johannesburg Stock Exchange (JSE) Listings Requirements, Bidvest is presenting this statement due to a projected variance of at least 20% in its financial results compared to the corresponding period in the previous year.

The announcement is generating significant interest as it paints a picture of robust growth and strategic resilience amidst a challenging economic environment. Bidvest’s projection of improved earnings is a testament to its adaptability and the effectiveness of its strategies, positioning it for a favorable outcome in the current fiscal year.

Key Highlights of the Trading Statement:

MetricPrevious Year (FY2022)Projected Range for FY2023Growth Percentage
Group Headline Earnings Per Share (HEPS)1,442.0 cents1,759 cents – 1,817 cents22% – 26%
Normalised HEPS1,601.5 cents1,842 cents – 1,906 cents15% – 19%
Group Basic Earnings Per Share (EPS)1,492.2 cents1,716 cents – 1,776 cents15% – 19%

The projected growth in these key metrics signifies Bidvest’s commitment to value creation for its shareholders, despite the complexities of the current economic landscape. The positive trajectory is expected to stem from a range of factors, including strategic investments, operational efficiencies, and prudent financial management.

Unpacking the Numbers:

  1. Group Headline Earnings Per Share (HEPS): The Group is expecting a substantial increase of 22% to 26% in HEPS compared to the prior fiscal year. This translates to a projected range of 1,759 cents to 1,817 cents. The previous year’s HEPS stood at 1,442.0 cents. This anticipated growth is indicative of Bidvest’s ability to capitalize on market opportunities and manage its operations effectively.
  2. Normalised HEPS: Normalised HEPS, which excludes certain costs, is projected to grow by 15% to 19%. This projection places the range between 1,842 cents and 1,906 cents, up from 1,601.5 cents in FY2022. This measure provides a more accurate reflection of the Group’s underlying operational performance, discounting specific financial events that may not be indicative of ongoing business activities.
  3. Group Basic Earnings Per Share (EPS): Bidvest expects its EPS to be 15% to 19% higher compared to the 1,492.2 cents reported in the prior year. This translates to a projected range of 1,716 cents to 1,776 cents. The anticipated increase is attributed to specific financial events that occurred in the base year, demonstrating Bidvest’s ongoing commitment to prudent financial management.

The Path Forward:

It is important to note that the financial information forming the basis of this trading statement has not undergone review by the Group’s auditors. However, the statement offers investors, analysts, and stakeholders an early glimpse into Bidvest’s performance for the fiscal year ending June 30, 2023. The eagerly awaited audited results will be officially released via the Stock Exchange News Service (SENS) on September 4, 2023.

This announcement comes at a time when South Africa’s economic landscape is marked by both challenges and opportunities. Bidvest’s projection of enhanced earnings reflects its agility and strategic acumen, positioning it to navigate the dynamic business environment effectively.

Implications and Market Response:

The announcement is likely to have a positive impact on Bidvest’s market performance in the short term. Investors and analysts are expected to closely monitor the official release of the audited results in September, seeking further insights into the factors that contributed to this projected growth. Bidvest’s proactive approach to enhancing shareholder value is poised to resonate well with the investment community.

Bidvest’s trading statement for the fiscal year 2023 paints a promising picture of growth and strategic resilience. The projected increase in key financial metrics underscores the Group’s ability to adapt to changing market dynamics and its commitment to creating value for its shareholders. As South Africa’s economic landscape evolves, Bidvest’s performance is likely to be closely watched as a barometer of economic recovery and business success.

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