Bidvest Chief Executive Lindsay Ralphs. (Photo: Bidvest)
Fisheries quotas in Namibia affect Bidvest's earnings
(SOUTH AFRICA, 8/29/2017)
Distribution, trading and services South African Group Bidvest has managed to obtain increased headline earnings by 6.2 per cent, to ZAR 3.7 billion (USD 283 million) for the financial year ended June 30 despite the lack of economic growth, declining consumer spend as well as significant business and political uncertainty.
“We are evolving successfully following last year’s unbundling of the food service businesses. The benefits of our diversified portfolio and the quality of the underlying businesses are evident in the performance of the trading operations where five of Bidvest’s seven divisions, as well as Bidvest Properties, delivered growth in trading profit,” pointed out Bidvest Chief Executive Lindsay Ralphs.
The firm’s South African operations delivered improved trading results in most divisions, with trading profit increasing by 6.4 per cent against revenue growth of 3.5 per cent.
The firm informed that its branch in Namibia continued to be impacted by limited fishing quota allocation, higher quota buy-in prices and a recessionary macroeconomic environment in Namibia and that numerous strategic options are being considered.
The Group revenue increased by 4.0 per cent to ZAR 71 billion (USD 5.4 billion) compared to ZAR 68.2 billion (USD 5.2 billion) achieved last year, with a stable gross profit margin at 29.1 per cent.
During the analysed financial year, Bidvest acquired 100 per cent of Brandcorp and 100 per cent of Iris and UK-based facility management services and solutions provider Noonan.
The Group believes that with a continued strong focus on expense control and asset management, they can ensure sustainable growth.
In addition, the company says that it will continue to explore acquisitive opportunities in local and international markets with the intent of complementing their core product and service offerings.
“We maintain a sound financial position and a strong balance sheet with adequate headroom to support growth aspirations”, concluded Ralphs.
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Information of the company:
Address:
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Bidvest House 18 Crescent Drive Melrose Arch, Melrose
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City:
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Johannesburg
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State/ZIP:
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(2196)
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Country:
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South Africa
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Phone:
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+27 11-7728700
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Fax:
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+27 11-7728970
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