| Bidvest Group Limited: Results for the year ended 30 June 2024 |
| Salient features for the year ended 30 June 2024: |
- R122.6 billion revenue, +6.7%
- R12.4 billion trading profit, +8.5%
- R14.0 billion cash generated by operations, +15.3%
- ROFE 37.3%
- Basic EPS 1 873.8 cents, +6.6%
- HEPS 1 912.6 cents, +6.6%
- Normalised HEPS 1 964.8 cents, +4.3%
- Total dividend of 914 cents, +4.3%
|
| Leading services, trading and distribution Group, Bidvest has delivered a solid performance for the year ended 30 June 2024, with the underlying themes demonstrating the Group’s coveted attributes of consistency in performance, strong cash flow and growth. |
| Trading profit grew by 8.5% to R12.4 billion, with acquisitions boosting growth by 2.9%. The trading profit margin improved slightly to 10.1% (FY2023 10.0%). |
| The Group declared a final dividend of 447 cents per share, bring the year’s total to 914 cents, which is 4.3% higher than last year. |
| Bidvest Chief Executive, Mpumi Madisa commented, “This year’s result is characterised by increased innovation and technology deployment across all our operating regions. Our considered and focused corporate action execution has resulted in our maiden hygiene services entry in the Asia-Pacific market and the doubling of our Australian facilities management operations”. |
| Despite the pressure points of volume contraction in renewables and new vehicles, the overall results are a testament to the value of Bidvest’s diversified portfolio. |
| Five out of the seven divisions reported profit growth with four delivering impressive double-digit increases. Two divisions, Commercial Products and Automotive, faced headwinds due to the high renewables base and a declining new vehicle market. |
| We remain confident in our growth strategy and ability to create sustainable value. To ensure a strong pipeline, Bidvest deployed almost R5.0 billion on eleven acquisitions and growth capital expenditure, both domestically and offshore. These investments added to the Group's geographic footprint (Consolidated Property Services in Australia, RHS in Singapore), further diversified the portfolio (Interloc Freight Services, Green Home Products, Brandability), and augmented key offerings through additional scale (Robinson Services, OSS Contracts, Principal Hygiene, Synergy Waste, Pure Hygiene, Roan Systems). |
| Madisa added, “Strong cash generation and conversion in the second half allowed us to reduce gearing from the interim stage, and to end in line with the prior year. And yet again, we delivered an excellent value-adding return for shareholders”. |
| Following a portfolio review, Bidvest has made a significant strategic decision to dispose of Bidvest Bank and FinGlobal, thereby positioning these businesses for their next phase of sustainable growth, whilst recycling capital for the Group. The remaining short-term insurance businesses, whose focus is primarily vehicle insurance cover and related value-added products, transferred to Automotive effective 1 July 2024. |
| Highlights: |
| Group revenue grew 6.7% to R122.6 billion (FY2023: R114.9 billion), with acquisitions boosting the growth rate by 2.9%. In largely stagnant markets, price inflation, a weaker rand against major currencies, and new business gains were the key growth drivers. |
| Top-line growth together with vigorous gross margin management and excellent expense control culminated in Group trading profit increasing 8.5%. |
| Cash flow from operating activities grew strongly by 18.7%, which is more than double net income growth, after paying more to equity and debt capital providers. The Group’s cash conversion after working capital investment and capital expenditure improved markedly from 76.4% to 83.4%. |
| Madisa said, “Cash generated by operations was excellent, increasing 15.3% to R14.0 billion”. |
| HEPS and Normalised HEPS1, a measurement used by management to assess the underlying business performance, grew by 6.6% and 4.3%, respectively. As a result of the growth capex and working capital investment, the Return on Funds Employed (ROFE) moderated from 38.3% at year-end to 37.3%. Return on Invested Capital (ROIC) of 16.1% compares to 17.3% in the prior year. The spread over the weighted cost of capital was maintained. |
| For the full report click the link below:
The Bidvest Group Limited |
