Bidvest has announced its unaudited financial results for the six months ending 31 December 2023, showcasing a robust performance despite challenging market conditions. The company also declared an interim dividend, underscoring its commitment to shareholder value.
Bidvest reported a revenue of R62.2 billion, marking an increase of 8.8% compared to the same period last year. The trading profit surged by 11.8% to R6.5 billion, driven by strong organic growth, effective gross margin management, and expense control measures. Notably, five out of seven divisions recorded double-digit trading profit growth.
The company’s operational efficiency is evident in its improved trading profit margin of 10.5%. Moreover, Bidvest nearly doubled its cash generated by operations to R3.7 billion, despite a significant investment of R4.5 billion in working capital.
| Metric | Value | Change |
|---|---|---|
| Revenue | R62.2 billion | +8.8% |
| Trading Profit | R6.5 billion | +11.8% |
| Trading Profit Margin | 10.5% | Improvement |
| Cash Generated by Operations | R3.7 billion | Doubled |
| HEPS | 987.9 cents | +5.3% |
| Normalised HEPS | 1 051.3 cents | +6.9% |
| Final Dividend | 467 cents | +6.9% |
Bidvest’s strategy of expanding its geographic footprint and enhancing its product and service offering through acquisitions has yielded positive results. The company successfully concluded numerous acquisitions in South Africa, Australia, the United Kingdom, and Singapore during the reporting period. These acquisitions bolstered Bidvest’s position in hygiene services, facilities management, and other sectors.
Despite the challenging economic environment characterized by high inflation and interest rates, Bidvest remains committed to sustainable growth. The company aims to create employment opportunities, invest in skills and technology, and reduce its environmental footprint while contributing to the development of South Africa.
Looking ahead, Bidvest is optimistic about its growth prospects. The company is focused on seizing opportunities in sectors such as travel and tourism while maintaining financial discipline. Management remains vigilant about margin and expense management amid market pressures.
In line with its dividend policy, Bidvest’s directors declared an interim gross cash dividend of 467 cents per ordinary share for the six months ended 31 December 2023. The dividend will be payable to shareholders registered on the record date, 28 March 2024.
The contents of this announcement have been approved by Bidvest’s board of directors and comply with regulatory requirements. Investors are encouraged to review the full announcement for comprehensive financial details, available on Bidvest’s website and the JSE’s platform.
The financial results have not been audited or reviewed by the company’s auditors but have been prepared under the supervision of the Chief Financial Officer, MJ Steyn, BCom CA (SA).
Bidvest’s strong financial performance and dividend declaration underscore its resilience and strategic foresight amid challenging market conditions. With a focus on sustainable growth and value creation, Bidvest remains well-positioned to navigate uncertainties and capitalize on emerging opportunities in the global market.
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