Record Profits and Dividend Surge: Bidcorp Dominates 2023

  • Bidcorp Achieves Record Performance: Bidcorp reports a remarkable fiscal year ending June 30, 2023, with a 33.4% rise in revenue and 38.4% increase in trading profit.
  • Strong Cash Generation: Cash generated by operations surges by 66.0%, reflecting Bidcorp's ability to convert profit into cash flow.
  • Generous Dividend Increase: Bidcorp declares a final gross cash dividend of 500.0 cents per share, up 34.3% from the previous year.
Bidcorp Limited

Bid Corporation Limited, commonly known as Bidcorp has announced its exceptional financial results for the fiscal year ending June 30, 2023. The company’s management has skillfully leveraged resurgent demand within the broader foodservice sector and higher inflation to achieve record-breaking performance. This success is reflected in key financial metrics, including revenue, trading profit, and cash generation.

Impressive Financial Highlights

Bidcorp’s financial results for the year have undoubtedly captured attention. The company reported a staggering revenue of R196.3 billion, marking a remarkable 33.4% increase from the previous fiscal year’s R147.1 billion. This substantial growth is indicative of Bidcorp’s ability to capitalize on renewed market demand and adapt to evolving economic conditions.

The trading profit, another crucial indicator of Bidcorp’s robust performance, stood at R10.5 billion, demonstrating a notable surge of 38.4% compared to the previous fiscal year’s R7.6 billion. This increase underscores the efficiency of the management’s strategies in navigating the dynamic foodservice landscape.

Cash Generation and Dividend Declaration

One of the standout achievements of Bidcorp’s financial year has been its strong cash generation. The company generated an impressive R13.2 billion in cash from its operations, marking a significant 66.0% increase from the previous fiscal year’s R8.0 billion. This impressive cash generation highlights Bidcorp’s ability to convert its trading profit into tangible cash flow, reinforcing its financial stability and growth trajectory.

Bidcorp’s commitment to rewarding its shareholders is also evident through its dividend distribution policy. In line with this commitment, the company’s directors have declared a final gross cash dividend of 500.0 cents per ordinary share for the fiscal year ending June 30, 2023. This represents a 34.3% increase from the previous year’s 700.0 cents per share. The net dividend amount after accounting for withholding tax stands at 400.0 cents per share.

Earnings Per Share and Shareholder Value

Bidcorp’s shareholders are set to benefit from the company’s impressive financial performance. The company reported a headline earnings per share (HEPS) of 2,082.9 cents, marking a notable 35.4% increase from the previous fiscal year’s 1,538.3 cents. Moreover, the earnings per share (EPS) also witnessed substantial growth, reaching 2,061.8 cents, a significant 42.8% increase from the previous year’s 1,444.3 cents. These metrics reflect Bidcorp’s commitment to enhancing shareholder value through consistent growth.

Shareholders’ net asset value also witnessed a substantial rise, reaching R39.8 billion, which signifies a remarkable increase of 21.1% from the previous fiscal year’s R30.8 billion. This increase demonstrates Bidcorp’s ability to not only deliver strong financial performance but also to create lasting value for its investors.

Dividend Timeline and Investor Impact

Bidcorp’s dividend declaration follows the company’s established policy and is a testament to its commitment to its shareholders. The final gross cash dividend of 500.0 cents per ordinary share will be payable to registered members on the record date, set as Friday, September 29, 2023. For investors interested in the dividend, it’s important to note that the last day to trade cum-dividend is Tuesday, September 26, 2023, while the first day to trade ex-dividend is Wednesday, September 27, 2023. The payment date for the dividend has been scheduled for Monday, October 2, 2023.

Expert Opinion and Audited Results

Bidcorp’s audited financial results for the fiscal year ending June 30, 2023, have been reviewed by PricewaterhouseCoopers Inc., who have provided an unmodified audit opinion. This endorsement adds a layer of credibility to Bidcorp’s remarkable performance and solid financial health. Investors and industry experts alike are closely observing the company’s trajectory, as it continues to assert its leadership in the foodservice market.

Looking Ahead

Bidcorp’s outstanding financial performance for the fiscal year ending June 30, 2023, is a testament to the company’s strategic agility, strong management, and ability to seize market opportunities. As the South African foodservice industry evolves, Bidcorp remains at the forefront, showcasing its capacity to deliver sustained growth and shareholder value.

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