41 / 166
Chief executives
also achieved strong growth. Shenzhen
enjoyed continued year-on-year growth on
the back of firm demand in the restaurant
and foodservice channels. Sales of President
products assisted overall performance.
Singapore’s
trading profit and revenue
growth continued as the company gained
further traction following its transition from a
business largely engaged in trading activities
to one with a core foodservice focus.
The Foodservice division was the standout
performer, registering good growth in key
customer categories. Pleasing growth was
seen across beef, poultry and butchery lines.
Sales remain under pressure at the
Consumer, Marine and International Trading
divisions. Working capital slipped. This will
require focus in the period ahead. Post year-
end, a further investment has been made into
Malaysia through the acquisition of a majority
stake in Aeroshield, a distributor of quality
chocolate, pastry and bakery products.
Brazil
achieved excellent revenue and
trading profit growth, despite the challenges
of low consumer spending and deflation,
assisted by the acquisition of Mariusso, a
foodservice distributor based in the greater
São Paulo area.
The core business, Irmãos Avelino,
continued to strengthen the sales function,
while modernisation of the vehicle fleet drove
distribution efficiency.
Continued growth is projected as the
national economy is expected to recover
somewhat and we see growth potential in
the frozen and chilled segments. In addition,
opportunities exist to grow volumes across
our existing retail customer base.
Further growth on the back of the Mariusso
acquisition is also expected. In the coming
year, Mariusso will launch telesales off the
back of the Irmãos Avelino model.
Chilean
business registered pleasing trading
profit and revenue growth, despite continued
deterioration of the national economy. Overall
margins were well managed.
Santiago foodservice branch sales were
especially strong. Processed meat volumes
were significantly higher, with solid sales
success recorded in the fast-food channel.
The new seafood category presents an
exciting opportunity.
Puerto Montt branch volumes were up, but
below expectation. Margin improvement was
evident as a result of the growing free trade
focus.
Concepción branch volumes doubled from
a low base, following the establishment of a
local branch and our acquisition of a small
foodservice distributor.
Continued growth is forecast, though tough
trading conditions will persist. Debtors
management has become a key focus
area. However, good momentum has been
built. A new branch at Viña del Mar became
operational post year-end.
Middle East
division performed well,
improving both revenue and trading profit
significantly. Sales were up, gross margins
improved and expense control was rigorous
across the value chain.
Revenue ticked higher at Horeca UAE, but
failed to reach anticipated levels following
a slowdown in hotel occupancy combined
with the muted trading effects of the holy
month of Ramadan late in the fourth quarter.
Retail operations have been significantly
downscaled.
In Saudi Arabia, Al Difaya’s revenue was
below expectation, but up on prior year.
Margins were well managed and trading
profit improved. Further expansion of the
distribution footprint will open up more of the
remote areas of the country, with significant
growth in hotel occupancies in major cities
anticipated through to 2020.
Horeca Oman recorded excellent sales,
despite a slowdown in the economy.
Performance was driven by a new brand
introduction and continuing growth of
the customer base. Horeca Bahrain grew
on the back of aggressive promotional
activity. Beverage marketing benefited from
collaboration with Al Difaya.
Aktaes Turkey
achieved revenue growth,
but trading losses persisted. Operating
expenses moved higher, but were broadly
in line with management forecasts.
The Turkish economy rebounded in 2017,
but uncertainty remains and hotel occupancy
rates for most of the year remained low.
1.
4.
2.
5.
3.
6.
6.
Johnny
Kang
Angliss Asia
Nedim
Makzume
Aktaes Turkey
Antonio
Celso Dias Avelino
Irmaos Avelino Brazil
Hisham
al Jamil
Horeca Trade
Middle East
Gabriel
Abramovicz
Bidfood Chile
Klaas
Havenga
Bidcorp Food Africa
Nigel
Phillips
Chipkins Puratos
Brent
Varcoe
Bidfood SA
John
Morris
Crown Food
37
Annual integrated report 2017
Bid Corporation Limited