Bidcorp

Bidcorp Europe

Reaching over 10 countries across Europe, Bidcorp businesses comprise leading foodservice distributors of prestigious brands. Supplying premium brands across a wide range of product lines, and a significant presence of own brand manufacturing and distribution, Bidcorp in Europe is the leading foodservice distributor to the Horeca sector. Bidcorp has a world-class service offering and a diverse product range that meets the needs of its vast customer base. Its innovations in product and menu development, allows Bidcorp to live up to its reputation of delivering smart solutions from a responsive foodservice partner, thereby creating opportunities to add value for both customer and supplier.

Netherlands

Turnover showed the first growth since 2013, buoyed by good performance in the hospitality sector which offset the continued decline in the institutional segment. Trading profit was ahead of budget. Institutional business decline appears to have bottomed out but remained under pressure, though catering sales moved higher.

Catering performance was driven by new contract gains and growing demand from existing customers.

National account volumes rose as a result of an uptick in out-of-home eating, with margins improving as marginal customers were exited. In the hospitality sector, the business made continued market share gains while maintaining margins.

Belgium

The economy slowed down in the second half and tourism came under pressure following the terror attacks in March. Horeca sales into Brussels were hard hit for a time. However, our teams put in a robust performance and both revenue and trading profit were ahead of forecasts while margins were largely maintained.

Teams sought sales growth with focus on the development of high-value categories.

Catering showed good growth, supported by the renewal of a significant contract with a large catering group. Horeca volumes were slightly down, though trading profit growth was achieved. Good growth was seen in the institutional channel and within the logistics business.

Further tender gains in the new year for the institutional team bode well for the business going forward.

Czech Republic and Slovakia

The Czech Republic’s economy returned to growth and our industry benefited from a growing influx of holiday visitors. Our operations maximised these opportunities and we achieved excellent revenue and trading profit growth.

Sales teams performed strongly and results were lifted by a good ice cream season. The past summer has been one of the hottest in 10 years and high ice cream volumes were helpful in margin management.

The Czech division achieved a sales rise of 11,5%, with strong contributions from Foodservice and Retail. The export department achieved a 30% sales rise. Overall costs were well, other than wages which are under pressure as improved economic activity increased demand for warehousing and distribution staff.

Slovakia’s sales were up by more than 21%, with both Foodservice and Retail strong contributors.

Meat production from the Kralupy operation contributed to the strong overall result while trading profit from Opava production (ice cream, frozen vegetable, ready meals and potato products) was maintained.

Newly acquired MPD (providing cold storage capacity in Plzen) also made a positive start and met expectations.

Italy

Gradual improvement in the Italian economy is under way, though deflation is cause for concern.

Pleasing results were achieved, with revenue and trading profit above both budget and prior year. Expenses were impacted by the costs of operating the new Rome warehouse, but overall were well managed.

Sales of ambient and frozen products continue to grow as a result of strong penetration of the “street market”. This element of the mix now accounts for about 60% of sales. The growth drive in the “single customer” channel will be maintained.

Cash generated by operations remained healthy as working capital was well controlled.

Going forward, slower growth in the national foodservice market is projected. To accelerate the rate of our own growth, DAC will pursue acquisition opportunities, with strong focus on central Italy and the south.

Poland

The national economy continued on the growth path, and our business recorded strong sales growth, with a particularly impressive performance in the wholesale segment of the market due to good volume increases. No significant contracts were lost while some key national accounts were extended for a further two years.

Trading profit was well ahead of the prior year and overheads were well controlled. Cash flow remained robust despite an investment into working capital for growth.

Construction on the new central warehouse was completed during the year. It went into full operation in October.

Baltics

Overall sales in Lithuania, Latvia and Estonia achieved solid growth. The main driver of higher volumes was the foodservice segment as retail exposure declined.

Sales of chilled, frozen and ambient product ranges show good growth, while fresh fish sales have enjoyed impressive gains. Retail sales have been under pressure, however. Foodservice sales to independent foodservice clients remain the core focus of the businesses.

Spain

The Spanish economy sent mixed signals as uncertainty set in following robust growth in the first quarter of calendar 2016. Annual sales rose, but failed to meet budget and a small loss was again recorded. Expense management remains a challenge.

Growth potential has been identified in the fresh produce category and the hotel channel. Efforts will be stepped up in these areas in 2017.

Turkey

Economic growth continued unabated, underpinned by solid consumer spending, though concern is growing around a fall-off in revenues from tourism.

Total sales moved higher, supported by strong growth in the foodservice segment. Terror attacks have impacted tourism and out-of-home eating in Istanbul, where our operations are mainly centred.