Bidvest

  • 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.

Bidvest