FOOD SERVICE AND TECHNOLOGY Bidcorp produces another solid performance in global food service and technology

BIDCORP produced another solid performance from its global food service and technology in the year to June 30 and headline earnings per share (HEPS) increased by 9.6% to 2,635.8 cents per share.

- EDWARD WEST

CEO Bernard Berson said he was “very happy” with the results as most global consumer spending markets were generally lacklustre. Revenue grew 6.8% in constant currency, and after adjusting for bolt-on acquisitions and food-basket inflation, the top line grew by 4.5%.

Some 94% of the revenue base is outside of South Africa, so constant currency measures are the truer reflection of actual performance. In rand-translated results, HEPS grew by 6.5% to 2 562.7 cents per share, reflecting the impact of the stronger rand.

Group trading profit increased by 6.4% to R12.9 billion and 9.3% in constant currency. Basic earnings per share (EPS) increased by 1.8% to 2435.3 cents per share, primarily due to the non-cash losses incurred in the exit of the German operation. Bidcorp’s European businesses delivered double-digit growth in revenues and trading profits in home currencies despite difficult macro conditions.

Other than Portugal, which was in an investment phase, all businesses delivered a stronger result.

The UK delivered an improved performance and also benefitted from an acquisition. Emerging Markets was buoyed by an “excellent performance” from the South African businesses.