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Bidfood Australasia
Product segmentation Market segmentation
2017
2017
Frozen
Chilled
Ambient
Non-food
2017
37%
26%
34%
3%
2016
38%
26%
33%
3%
Logistics
Chain
Independent
Retail/other
2017
5%
20%
73%
2%
2016
10%
18%
70%
2%
Trading profit
R2,0bn
2016: R1,8bn
Revenue
R29,4bn
2016: R30,3bn
The region continues to make a substantial
contribution to the group. Revenue decreased
following the strategic exit of low-margin
contracts by 2,9% to R29,4 billion (2016:
R30,3 billion). Trading profit rose 9,8% to
R2,0 billion (2016: R1 ,8 billion), which when
translated in constant currency reflects a
12,0% increase. The successful strategic focus
on the free trade sector is reflected in these
results and management remain committed to
keeping it “all about the food”.
Australia
reported a great finish to the year
which took trading profit 8,7% higher in a
national economy that showed subdued
consumption growth and almost zero food
inflation. Net revenue fell 5%; however,
this was expected as we continued to exit
the low-margin Logistics business. Overall
margins rose, mainly a function of the
changing business mix.
Free trade sales – our main area of strategic
focus – were up a pleasing 5%. Growth has
come from new and existing business, and
has been driven by hard working sales teams
and focused initiatives.
In a year of significant change, the exit of
some logistics contracts led to the closure
of two sites. We relocated the Adelaide
branch to a new purpose-built facility, and
consolidated the Perth Fresh business into
the Perth Logistics site. We opened a new
branch in Port Melbourne, opened a new
purpose-built branch in Yatala, Queensland
and opened a new branch in Truganina,
Victoria. The Sydney Support office was
moved to a new facility in Botany that will
also operate as a foodservice branch.
Three small, bolt-on foodservice acquisitions
were made in Launceston, Tasmania, in
Cairns, Queensland, and in Port Macquarie,
NSW. Expansion is motivated by the
strategic imperative for continued growth in
the free trade market.
DIVISIONAL REVIEWS
Annual integrated report 2017
Bid Corporation Limited
24