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Divisional reviews
Bidcorp Emerging Markets
Food Africa (BFA)
BFA returned excellent results, despite macro-
economic challenges and heightened credit
risk. Exchange rate fluctuations and inflation
created trading opportunities. Sales exceeded
budget, as did trading profits. However,
margin pressure intensified.
Net sales growth exceeded food inflation,
driven largely by pleasing sales gains at Food
Ingredients (BFI) across the independent
channels and Foodservice (BFS) in the
independent and national account channels.
Bakery Solutions (BBS) continued to grow its
penetration of the retail and franchise sector.
Food Exports (BFE) achieved substantial
growth in Zambia.
BFS’ excellent growth was all organic. The
independent and national account segments
both achieved double-digit growth. The
independent or street trade channel now
accounts for more than half of sales.
A major contract win was recorded in the
catering sector in the first half. Growth was
also driven by the online ordering platform and
private label product lines.
BFI drove growth by focusing on its own
manufactured lines and product brands.
Volume growth was recorded across most
sectors and categories. The butcheries
segment made impressive gains, as did
casings (natural and artificial), additives and
spices, condiments and packaging.
All Crown trading operations reported
solid growth.
BBS had an excellent year, with focus on
innovation and product development across
its own manufactured products while strong
growth was seen in the confectionery and
sugar and syrup categories.
All trading branches built momentum on the
back of a strong fourth quarter.
BFE made market share gains. Strong
performance by the Zambian operation is
expected to continue.
With geographic footprint over four continents, this division includes Bidcorp operations in Africa, South
America, Asia and the Middle East. African operations manufacture and distribute meat, poultry, dairy and
general food ingredients as well as baking ingredients and equipment and a multi-temperature foodservice
offering of a full range of ambient, chilled and frozen food products. Asia and the Middle East distribute high-
end speciality products into the western styled food market with supply exclusivity in many global brands. South
America sources and distributes frozen, chilled and ambient local product into the independent street market
across both Chile and Brazil.
While Bidcorp has grown into a substantial international business, it remains true to its South African heritage
and the JSE listing is an exciting platform to share the next chapter in this success story. The focus as a
standalone foodservice company will strengthen management’s determination to continue generating and
enhancing sustainable, long-term returns for all stakeholders.
Brazil
Trading challenges mounted in a year of
political and economic crisis. Foodservices
were not hit as severely as some sectors of
the economy, but out-of-home eating declined
by an estimated 30%. In this environment, the
business did well to maintain sales volumes
while minimising the impact on trading profit.
Bad debt levels were well managed and
expenses well controlled. The implementation
of new IT systems contributed to routing and
distribution efficiencies. Further improvements
were evident following the opening of our new
warehouse late in the second quarter. New
trucks were purchased.
Regional reorganisation in the new year will
ensure major benefits of improved cost of
sales and better customer service.
The first supplies from Bidcorp Procurement
Company (BPC) contributed to improved
performance by our procurement department.
A new branch was opened in Santa Catarina.
Better growth is projected for 2017.
Acquisition opportunities will be pursued.
Chile
Our growth strategy was impacted by the
slowdown of the national economy and belt
tightening by consumers. Despite marketplace
pressures, year-on-year sales and trading
profit growth were achieved.
Performance was underpinned by new
business gains, robust cross-selling and
the introduction of meat to the product
mix. The focus on collections and debtors
management was tightened up and contract
terms were renegotiated in some instances.
Business casualties in the customer mix
became cause for concern. Foodservice
teams performed well.
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| Bidcorp Limited Annual integrated report 2016