HY 2021
- Bidvest, the diversified industrial holding company, reported a sparkling set of operating and financial results for the six months to December 2021.
- The group is optimistic that an economic recovery is taking hold. Bidvest has been known to be a bell weather for South Africa, and it appears to be experiencing an uptick following a relaxation of Covid pandemic regulations. The company recorded a double-digit trading profit of 24.8%, with loss-making operations now turning profitable due to proactive restructuring initiatives.
- The Freight division was the star performer on the back of record maize exports volumes, and buoyant commodity demand. And Bidvest is expecting a strong second half for exports. The branded and commercial products businesses also both showed strong growth in trading profits.
- The services division, of which hygiene is a major profit center, is benefiting from the re-opening of the hospitality sector well as from people returning to their offices.
- Bidvest is a large-scale supplier to the mining industry in SA, with a positive outlook for the year ahead.
- Four acquisitions in the UK and Ireland have continued to build critical mass on established operations, mainly in the niche area of hygiene services and products. Offshore operations made a positive contribution to group profits.
- The company says that it has a strong pipeline for facilities management and hygiene in the year ahead, with the continuous focus on the capital light aspects of these operations. Cash generated from operations was a sturdy R7 bn before investments of R3 bn in working capital.
- Group HEPS increased by 37% to 852.9c with the interim dividend rising by 31% to R3.80, a testament to consistent delivery to shareholders. The diversity of the business model is a positive aspect in times of global volatility.