29 / 166
The Classic Meats business showed pleasing
trading profit growth, though some was
attributable to the reallocation of meat sales
from Brisbane Foodservice to Classic Meats
Brisbane. Continued organic and acquisitive
growth is planned.
Only one standalone Logistics business
remains (in Perth) and the overall rebalancing
of the customer portfolio is substantially
complete.
Across the Australian business, significant
progress was made with the strategy of
creating a sustainable base that will foster
continued growth in the free trade space
and enable us to entrench our image as food
people, not carton-movers. We are excited
by positive change and the opportunity to
achieve continued growth in our desired
target market.
New Zealand
delivered a strong fourth
quarter which created the platform for 22,6%
trading profit growth on prior year. Double-
digit profit growth was secured by most of
the business units.
Nationally, the key growth driver was tourism,
which offset a softening in some parts of
the domestic economy. Weaker results in
manufacturing and mining had little impact
on a buoyant hospitality market.
Food prices rose sharply, with dairy, meat
and fresh produce leading the way. A tight
labour market created challenges and
contributed to rising expenses. Margins
were well protected, resulting in improved
profitability in all divisions.
Gains were underpinned by a particularly
strong performance by Foodservice. This
division recorded 10% sales growth and
benefited from improved buying and margin
management. Imports had an outstanding
year.
Free trade remained the key Foodservice
focus area, though a high level of contract
retention contributed to the strong divisional
performance.
Fresh performed strongly, expenses were
well controlled and margins were well
protected.
Logistics division was bolstered by a good
result at Auckland and an excellent one at
the Christchurch branch.
Processing put in a stellar performance.
Higher branch network volumes enabled the
business to generate efficiencies. Improved
buying created price stability and supported
margins.
Across the business, returns improved,
driven by excellent working capital
management. Investment in fixed assets
continued. Three new distribution centres are
nearing completion.
Foodservice division put in another strong
performance, despite increasingly intense
competition as new players enter this market.
We now have 36 foodservice operations,
most of which performed well. Perth put
in a particularly strong performance as the
resources sector showed signs of a slight
recovery. Further foodservice growth is
projected for the year ahead, with the new
branches positioned to contribute fully to
continued momentum.
Imports division had a great year. The pace
of new product development was maintained
and the number of products in our home-
brand basket continued to grow.
Fresh had a better year and returned a
meaningful trading profit. However, more can
be done to unlock the undoubted potential
in this sector. Management changes were
made in Sydney and Adelaide. Competition
is intense, but a base on which to build has
now been established.
Chief executives
Rachel
Ruggiero
Bidfood Australia
Phil
Struckmann
Bidfood New Zealand
25
Annual integrated report 2017
Bid Corporation Limited