Bidvest Group: Strong Growth and Generous Dividend Announcement

  • Strong Financial Performance: Bidvest Group reported a 15% increase in revenue, with a 17.6% rise in trading profit for 2023.
  • Resilience Amid Challenges: The company's disciplined margin management and normalized HEPS growth of 17.7% underscore its resilience.
  • Generous Dividend Declaration: Bidvest declared a 20.6% higher cash dividend, reflecting its confidence in future prospects.

The Bidvest Group Limited has unveiled its audited financial results for the year ending June 30, 2023, and announced a generous cash dividend. The company’s performance reflects resilience and growth in a challenging economic environment, driven by strategic investments and disciplined financial management.

Impressive Financial Highlights

Bidvest reported robust financials with several key highlights that underscore its financial strength and resilience in a challenging economic landscape:

Metric2023 ResultsChange vs. 2022
Revenue (R)R114.9 billion+15.0%
Trading Profit (R)R11.4 billion+17.6%
Cash Generated from Operations (R)R12.2 billionN/A
Return on Funds Employed (ROFE)38.3%+0.7%
Basic Earnings Per Share (EPS)1,757.3 cents+17.8%
Headline Earnings Per Share (HEPS)1,794.8 cents+24.5%
Normalized HEPS (excludes acquisition costs)1,884.7 cents+17.7%
Final Dividend (cents)439 cents+20.6%

Bidvest’s revenue surged to R114.9 billion, reflecting a substantial 15.0% year-on-year growth. This growth was matched by an impressive trading profit of R11.4 billion, demonstrating a 17.6% increase. The company also excelled in generating cash from its operations, with R12.2 billion in cash generated during the year.

Business Performance Highlights

Bidvest’s success can be attributed to its strong performance across various business divisions:

  • Organic Growth: The Group witnessed excellent organic growth, largely driven by increased demand for renewable energy products and travel and tourism services.
  • Financial Services: The recovery in the Financial Services division surpassed expectations, showcasing its resilience and adaptability in the face of economic challenges.
  • Services South Africa: This division reported revenue exceeding one billion rand, underlining its significant contribution to the Group’s success.
  • Freight: The Freight division delivered trading profit exceeding R2.0 billion, doubling its contribution from just three years ago.

Navigating Economic Challenges

Bidvest’s success in a challenging economic environment was due, in part, to its disciplined approach to financial management:

  • Margin Management: The company placed a strong emphasis on margin management in light of persistent inflation and operational challenges, especially in international markets. Despite these challenges, the trading profit margin improved by 22 basis points to reach 10.0%.
  • Normalized HEPS: A key performance metric, Normalized HEPS (which excludes acquisition costs), saw an impressive 17.7% growth, reflecting the underlying strength of Bidvest’s core business operations.
  • Return on Funds Employed (ROFE): Bidvest’s ROFE improved further, reaching 38.3%, demonstrating the efficient use of capital.
  • Return on Invested Capital (ROIC): Despite higher interest rates, Bidvest maintained a healthy ROIC of 17.3%, well above the Group’s weighted cost of capital.

Promising Prospects

Looking forward, Bidvest remains optimistic about its growth prospects, even in the face of various macroeconomic factors. The company identifies key sectors that will drive its growth:

  • Renewable Energy: While not expecting the same frenetic pace seen in the past year, Bidvest anticipates robust activity in the renewable energy sector.
  • Mining and Agriculture: Bidvest foresees growth opportunities in mining and agriculture, essential industries for the South African economy.
  • Tourism: As a vital contributor to the South African economy, tourism is expected to see increased activity, bolstering Bidvest’s position in this sector.
  • Infrastructure: Basic infrastructure development remains a priority, and Bidvest is well-positioned to capitalize on opportunities in this space.

While remaining optimistic, Bidvest acknowledges challenges in discretionary spending and heightened competition. However, the company’s commitment to disciplined cash generation and margin management sets it on a favorable trajectory. Furthermore, Bidvest has an exciting acquisition pipeline ready for execution.

Generous Dividend Declaration

In line with its dividend policy, Bidvest declared a final gross cash dividend of 439.00000 cents per ordinary share for the fiscal year ending June 30, 2023. This dividend represents a 20.6% increase compared to the previous year. Shareholders will receive a net dividend amount of 351.20000 cents per share after withholding tax, which applies to non-exempt shareholders.

  • Share Information:
    • Share Code: BVT
    • ISIN: ZAE000117321
    • Issued Shares at Declaration Date: 340,274,346
    • Declaration Date: Monday, September 4, 2023
    • Last Day to Trade Cum Dividend: Tuesday, September 26, 2023
    • First Day to Trade Ex-Dividend: Wednesday, September 27, 2023
    • Record Date: Friday, September 29, 2023
    • Payment Date: Monday, October 2, 2023

It’s important to note that share certificates cannot be dematerialized or rematerialized between September 27 and September 29, 2023, inclusive.

Audit Opinion and Regulatory Compliance

The auditors, PricewaterhouseCoopers Inc., have issued an unmodified audit opinion on Bidvest’s consolidated financial statements for the fiscal year ending June 30, 2023. The audit was conducted in accordance with International Standards on Auditing. The audited consolidated financial statements and the auditor’s report are available on the company’s website (

Bidvest emphasizes that all investment decisions made by investors and shareholders should be based on a careful consideration of the audited consolidated financial statements.

Board Appointment

In compliance with Section 3.59 of the Listing Requirements of the JSE Limited, Bidvest announced the appointment of Mr. Khumo L Shuenyane as an independent non-executive director and member of the Audit and Acquisition Committees, effective September 4, 2023. Mr. Shuenyane brings a wealth of experience to the Board, having previously served as the chairman of Investec Group and currently holding non-executive director roles at Ninety One and Vodacom Group.



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