32 / 166
Bidfood United Kingdom
Product segmentation Market segmentation
2017
2017
Frozen
Chilled
Ambient
Non-food
2017
33%
29%
30%
8%
2016
33%
28%
30%
9%
Logistics
Chain
Independent
Retail/other
2017
41%
34%
25%
0%
2016
42%
37%
21%
0%
Trading profit
R1,3bn
2016: R1,5bn
Revenue
R50,0bn
2016: R61,0bn
Bidfood UK
delivered pleasing trading
performance underpinned by an excellent
fourth quarter. Trading profit was up strongly
and exceeded expectations in an economy
that achieved only marginal growth.
British employment is at record levels, but
disposable income is under pressure, driven
by higher inflation.
Overall sales growth was constrained by
the strategic exit of a number of large,
unprofitable contracts. However, free trade
volume growth of 8% was achieved.
Margins were well managed and expenses
contained, despite rising wages, fuel prices
and other overheads. Continued focus was
given to overall cost control and reduction of
support costs. Cash flow remained robust
and investment in the business continued,
with fleet vehicle renewal a focus area.
Rebranding to Bidfood was warmly received
by the market.
In line with the overall growth strategy, the
free trade sales mix showed continued
Revenue declined 18,0% to R50,0 billion
(2016: R61,0 billion). However, excluding the
effects of a strengthening rand, revenue
increased 1,9% in constant currency. Trading
profit decreased by 9,6% to R1,3 billion
(2016: R1,5 billion). Excluding the currency
effects profitability was up 12,4%.
improvement with a benefit to total margins.
National account margins were well
managed while significant new contracts
supported fourth quarter volumes.
Own-brand growth was strong across all
categories of business.
IT infrastructure was moved in-house and
the transfer of data centre hosting to a new
service provider was completed. Migration of
e-commerce solutions was finalised early in
the new period. All IT activity proceeded to
plan without business disruption. Ongoing IT
cost savings are envisaged.
The specialist focus areas of wine and meat
achieved pleasing gains in volume and profit.
Across the wider business, ongoing growth
is projected on the back of continued close
alignment with Britain’s growing free trade
sector. Margin management and cost
efficiency remain focus areas. We continue
to investigate opportunities for acquisitive
growth.
Bidfresh
results saw good revenue growth
with only a small growth in profit largely due
to margin issues across the fresh categories.
Performance was assisted by the acquisition
of R Noone & Son (Noone), a Manchester
fresh produce supplier to the catering
industry, and Wynne-Williams, a butchery
business based in Flint, Wales, both of which
performed as expected since the acquisition.
Significant product cost inflation caused by
farm gate inflation and adverse exchange
movements put pressure on margins across
DIVISIONAL REVIEWS
Annual integrated report 2017
Bid Corporation Limited
28