<\/p>\n
Bidcorp, the global foodservice giant, in a trading update on Tuesday said constant currency headline earnings per share were up 10% for the period ending April 2025, showcasing resilience in a challenging economic landscape marked by subdued consumer spending and persistent inflationary pressures.<\/p>\n
The company reported a 10% year-to-date growth in constant currency trading profit, navigating near-zero food inflation and currency volatility that dented rand-translated results by 3.8%.<\/p>\n
The update highlighted a 10% increase in constant currency headline earnings per share (Heps), surpassing the record performance of the prior year. With more than 90% of operations outside South Africa, Bidcorp cited constant currency metrics as the true gauge of its performance. Revenues hit record levels, up 6.7% in constant currency from the stellar 2024 comparative, with organic growth at 4.6% and acquisitions contributing 2.1%.<\/p>\n
Despite a slow third quarter in the UK and Europe due to the Northern Hemisphere winter, April trading rebounded, buoyed by a late Easter and warmer weather. Australasia struggled, with Australia\u2019s demand lackluster and New Zealand\u2019s hospitality sector under strain. Emerging Markets showed resilience, though Greater China lagged. South Africa and South America posted positive results.<\/p>\n
Global consumer spending remains constrained by cost-of-living pressures and tariff uncertainties, with interest rate cuts failing to significantly lift sentiment. Core inflation, outpacing food inflation, and rising labor costs due to regulatory wage hikes continue to challenge operations. Bidcorp is countering these pressures by prioritising market share growth, even at the cost of margins, while maintaining high service levels and managing credit risk.<\/p>\n
Its revenues continue to set record levels to the end of April 2025, outperforming the comparative 2024 figures by 6.7% in constant currencies. Acquisitions contributed 2.1% to net revenue reflecting real organic growth of 4.6%, “a commendable achievement in an almost zero-food inflationary environment”, the group said.<\/p>\n
For the period to April 2025, the group’s Ebitda margin (before IFRS16) of 5.8% is around 20 basis points better than 2024 Ebitda.<\/p>\n
Net capital investments to April 2025 of R5.6 billion (2024: R5.1bn) reflect the creation of future capacity (R2.8bn) and the replacement of capital equipment, most notably delivery vehicles (R2.8bn).<\/p>\n
CEO Bernard Berson said, “I would like to acknowledge and thank our amazing teams who repeatedly deliver record results, driving our business forward with their enthusiasm and passion. Our people are our strongest and best asset – who are motivated by doing what they do best, delivering growth and returns”<\/p>\n
Looking ahead, Bidcorp remains optimistic for the rest of 2025 and into 2026, supported by a robust capital structure and a pipeline of acquisition opportunities. <\/p>\n
“Our pipeline of bolt-on acquisition opportunities to achieve geographic reach and new product opportunities is full, however, we continue to be disciplined in converting the right opportunities, at the right price. Our management is focused on integrating those acquisitions that have been completed to realise their growth potential and relevant synergistic benefits. Our appetite for the larger opportunities remains, even though these have been sparse in recent years. Our capital structure provides significant financial firepower for the right opportunities,” it said. | Visit: <\/span>www.businessreport.co.za<\/strong><\/p>\n BUSINESS REPORT<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" Bidcorp, the global foodservice giant, in a trading update on Tuesday said constant currency headline earnings per share were up 10% for the period ending April 2025, showcasing resilience in a challenging economic landscape marked by subdued consumer spending and persistent inflationary pressures. The company reported a 10% year-to-date growth in constant currency trading profit, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-241589","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n