Mixed results for Bidvest as acquisitions pave the way for future business success

BIDVEST’S international services, trading and distribution group operations reported mixed results from its various divisions, but “a great deal of execution went into the year” to June 30, and benefits from this will mate-rialise in coming years, CEO Mpumi Madisa said Monday.

- EDWARD WEST

The group did 9 acquisitions through the year, concluding a two-year spate of 24 acquisitions and disposals. Madisa said in an online presentation they had executed almost all transactions in their proactively built pipeline, and the focus now was to ensure these businesses delivered on potential and generated strong cash flow. “We will be driving growth across all 11 territories,” she said.

The share price fell 5.67% to R223.46 on the JSE by yesterday midday, a price about 27% lower than the price a year ago.

Included in the acquisitions was Citron, which provided a platform for hygiene services growth in North America, Bidvest’s first entry into that market. The award of a new 25-year terminal concession in Richards Bay was announced, the value potential of which would be made available once the assets were built.

The group saw a stronger year-on-year performance in the second half, backed by good cash generation, and in spite of lower bulk commodity handling profits and renewable energy sales.