33 / 170
We opened a new branch in Concepción
and acquired a small Concepción-based
distribution business. We disposed of our
Santiago fresh bakery operation.
Santiago branch opened new sales channels
and grew profit. The Puerto Montt operation
grew its customer base.
Greater China
Despite a fiercely competitive market, a
slowing national economy and pressures on
the tourist industry, profit growth exceeded
expectation. Sales were 4,2% higher, while
expenses were controlled well, which resulted
in trading profit increasing by 20,8%.
Hong Kong
Pleasing annual profit growth was achieved.
Gourmet Cuisine did well on the back of
strong promotional support while natural and
organic food lines maintained good growth
momentum. In Macau, solid sales were
seen across the meat, dairy and seafood
categories.
Continued momentum is expected in the
coming year. Sales growth is expected from
newly launched operations (Wine and Mastery
Butchery). Continued growth of the natural
foods product catalogue is planned.
China
Mainland operations put in another pleasing
performance, with volumes and profits well
ahead of projections.
Dairy and meat volumes to hotel and
restaurant customers in Shanghai show
continued growth. Strong supermarket
demand underpinned gains in Beijing while
bakery, retail and foodservice lines did
well in Guangzhou. Sales in the Shenzhen
foodservice and restaurant channels showed
improvement. The President Products brand
was the star performer.
Business growth continued in second-tier
cities such as Changsha, Xian, Sanya and
Wuhan.
Continued growth is projected for 2017. New
product lines are being introduced.
Singapore
The business showed evidence of a
turnaround, with profit in line with expectation
while expenses were rigorously managed.
Sales volumes fell, however, in line with
the ongoing transition to a fully fledged
foodservice operation.
Low-margin operations were either closed or
scaled back.
The largest division, Foodservice, continued to
grow, supported by strong penetration of the
restaurant industry. Gourmet lines performed
strongly.
The Export division was reorganised into two
businesses. PastryGlobal Singapore was
integrated into Foodservice and Gourmet
Partner.
Middle East
Regional growth remained sluggish. However,
pleasing sales and trading profit growth was
delivered, with strong contributions from UAE
and Saudi Arabia. Cash generation remained
strong. Improved supply chain management
drove substantial inventory management
improvements. Working capital was well
managed.
Horeca UAE reported solid year-on-year
growth in sales and trading profit, despite
a disappointing fourth quarter that was
impacted by pressure on the tourism sector.
Competition increased. However, the retail
channel secured pleasing revenue gains.
Al Diyafa (Saudi Arabia) enjoyed pleasing sales
and trading profit growth. Retail achieved
good momentum following additions to the
range and increased promotional activity. Meat
was added to the category mix and three new
brands were introduced.
F&B Partners (Lebanon) delivered a solid
volume increase on the prior year, but losses
persisted. Bidcorp disposed of its interest in
F&B at the end of May.
BPC
Improved foreign exchange management
and significant demand from other Bidcorp
businesses resulted in BPC’s first operating
surplus. The product mix was further widened
and the number of supplier countries grew.
Buying of seafood products from Asia
represents an area of opportunity. Growth
here will be energetically pursued in 2017.
Investment in new systems is under
consideration.
5 326
2015:
5 991
Total employees for 2016
Distribution vehicles
757
Total water usage – kilolitres
Fuel usage – kilolitres
Diesel (excl biodiesel) usage
2016:
6 022
2015:
6 974
Gasoline (petrol) usage
2016:
2 045
2015:
1 602
Product segmentation
Frozen
41%
Chilled
21%
Ambient
35%
Non-food
3%
42
26
13
16
66
5
28
4
32
26
43
42
15
38
4
32
34
13
21
9
57
29
5
41
21
28
64
8
35
3
Market segmentation
Logistics
0%
Chain
28%
Independent
64%
Retail/other
8%
42
26
13
16
66
5
28
4
32
26
43
42
15
38
4
32
34
13
21
9
57
29
5
41
21
28
64
8
35
3
2016:
R18,2 bn
2015:
R15,6 bn
Pro forma revenue
2016:
R934,4 bn
2015:
R703,6 bn
Pro forma trading profit
Total
80
m
2
243 924
Distribution centres
2016:
368 165
2015:
376 383
Divisional reviews
Bidcorp Limited Annual integrated report 2016 |
Page 29