Foodservice group Bidcorp posts revenue surge of 33.4% in the fiscal year 2023
SOUTH AFRICA – Bidcorp, an international broad-line foodservice group, has posted a 33.4% revenue increase for the fiscal year 2023 due to a favorable business environment.
The revenue took a jump from R147.1 billion in the previous fiscal year to R196.3 billion. The trading profit also saw a substantial rise of 38.4%, from R7.6 billion in 2022 to R10.5 billion in 2023.
In terms of earnings, the headline earnings per share surged by 35.4% to 2,082.9 cents, up from 1,538.3 cents in 2022.
Commenting on the latest results, Bidcorp CEO Bernard Berson said: “The financial performance has been excellent. The strategic focus implemented by our experienced global teams within our entrepreneurial and decentralized operating model has contributed to this very successful result. “
“This was achieved in an environment where management teams were able to maximize the trading opportunities created by resurgent demand across the broader food service markets and higher inflation.”
He added that the activity levels in every market showed real growth and market share gains. However, the rate of growth moderated in the second half of the financial year, as businesses cycled through the buoyancy seen in the latter part of the 2022 financial year.
The group results show that Australasia performed well in terms of revenue growth and operating margins. Normal seasonality returned to Europe after the problems of COVID-19 and then the Russia-Ukraine conflict, with all businesses improving.
The company’s management also pointed out that the group’s UK businesses benefited from winning new contracts and acquisitions, achieving good growth, albeit at lower margins. Emerging markets delivered real top-line growth, but ‘growing pains’ in several businesses impacted profitability.
“Gains achieved from the current inflationary environment were offset to a small extent by strategic decisions to sacrifice margin to maintain volumes, some discounting of overstocked positions, and some pressure from the exposure to national customers where there has been a timing lag in repricing contracts,” said Berson.
Shaun Murison, senior market analyst at IG Markets, explained that the financial results strongly underline the company’s growth trajectory and its ability to generate shareholder value in a challenging market environment.
He added that it highlights Bidcorp’s strategic approach to seizing trading opportunities and its adept financial management.
Berson notes that several acquisitions are under consideration in geographic expansion and value-add product development opportunities.
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