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Executive chairman’s report
Overview
Bidcorp’s successful unbundling from Bidvest has given our newly
listed company a platform for sustained growth within a clear area of
focus – food and foodservices. Market excitement around our JSE
debut on May 30 was early confirmation that the potential for strategic
growth within the global foodservice industry is considerable.
Our business already has substantial scale and is represented in key
markets around the world. This creates a springboard for further
expansion now that our independent status gives us clear direction
across well-defined parameters.
Considerable momentum was already evident across our business as
teams achieved organic growth in the course of 2016 and made solid
gains in local currency terms.
It was satisfying to see our businesses achieve higher growth levels
than competitors as we continued to invest, to innovate and to
implement plans for the long term.
Results
We delivered a pleasing set of results as we embarked on our
new journey as a listed company in the JSE’s “Food Retailers and
Wholesalers” category.
Our pro forma headline earnings per share (HEPS) rose 32,5% to
1 080,0 cents (PF 2015: 815,2 cents) while pro forma basic earnings
per share (EPS) rose 26,1% to 1 034,0 cents (PF2015: 819,8 cents).
Double success
Two factors underpinned the unbundling and separation from Bidvest:
the desire to unlock value for shareholders and the need to provide for
succession.
Enhancement of shareholder value was evident from the outset as
the combined value of Bidvest and Bidcorp shares climbed steadily
above the price prevailing on February 8, the time of announcing
the unbundling.
Succession planning at Bidcorp appears to have received a similar
boost.
Even on the run-in to separation, it was clear that new thinking, new
direction and new enthusiasm were having a dramatic effect on our
foodservice operations.
Tight focus is not restrictive. It has created space for ambitious growth
by every executive, manager and team member. This was rapidly
realised. In 2016, the dynamic, confident approach of revitalised
management teams contributed to significant progress in every
Bidcorp geography as our businesses achieved growth in difficult
trading conditions.
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Our unbundling from Bidvest gives a solid base for focused growth
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Value unlocked for shareholders
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Succession planning re-energises the business
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Space for ambitious growth by every manager and team member
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Bidcorp businesses well positioned relative to competitors
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Sustained growth is the 2017 target
Brian Joffe
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| Bidcorp Limited Annual integrated report 2016