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Chief executive’s report
Bidcorp’s reach is substantial from day one as an independent
company. We are represented in every continent except North
America. Such wide-ranging geographic diversification spreads
risk and reduces negative impacts.
The value of diversification was underlined in a year when Brexit shook
confidence in the UK, political uncertainties mounted in Brazil and
terror attacks rocked jurisdictions as far apart as Turkey and Belgium.
Every event was significant locally, but the overall impact on Bidcorp
performance was relatively modest and our long-term growth trajectory
remains on track.
Pro forma comparisons show Bidcorp revenue rose 21% year-on-year
while trading profit topped 26%. Headline earnings were up by nearly a
third at R3,6 billion.
Amicable separation
Unbundling from the Bidvest industrial services group created
understandable excitement, both internally and externally.
The investment community – in South Africa and offshore – welcomed
the launch of the foodservice operations as a distinct listed entity.
Subsequent to our May 30 listing, Bidcorp shares were actively traded
and unlocked significant shareholder value.
Share performance to date – ours and that of our old parent, Bidvest
– indicates that one of the key objectives of the unbundling, this
unlocking of shareholder value, was quickly realised.
Unbundling was expected to proceed without serious difficulties.
In fact, the process proved to be even smoother than anticipated.
This was primarily a function of the decentralised Bidvest model and
longstanding operational autonomy. The process was also assisted
by goodwill and good personal relationships. Leading figures on both
sides have worked well together for many years. This helped to ensure
an amicable separation.
Relationships remain positive and we wish our Bidvest colleagues
every success in the years ahead.
Overview
Bidcorp marked its emergence as a separately listed company with
a strong set of results and pleasing performance by teams in every
geography. The confident start underlined our status as a respected
global player in the foodservice industry and an exciting new
contributor to the JSE’s Top 40 index.
Economic conditions varied enormously in every market in which we
are represented. The only uniform factors were the hard work of our
people and the ability of the Bidcorp business model to deliver solid
gains irrespective of macro factors.
Bernard Berson
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Strong results mark Bidcorp debut as a JSE-listed company
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Global diversification supports pleasing overall performance
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Bidcorp investors welcome unbundling
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Pro forma headline earnings up by 32,5%
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Excitement across all teams as Bidcorp achieves independence
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Strategic rebalancing adds value and momentum
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South African commitment remains strong
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Base established for further growth, organic and acquisitive
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| Bidcorp Limited Annual integrated report 2016