Annual integrated report 2018

We take a positive view and see a world of opportunity. Dangers exist, but the group has the capacity to manage them, thanks to our broad geographical spread, closeness to individual markets and the experience of local teams. Difficulties may arise in the short term, but experience tells us our teams have the knowledge and talent to successfully address them. All about the food Bidcorp is all about the food and this was reflected by dedicated operational focus in a year notable in many quarters for distractions and peripheral noise. The world may be more uncertain and weather patterns more extreme, but this merely underlines the benefit of working hard on those things you can control, rather than those you cannot. Bidcorp certainly derived benefit by addressing its own priorities while increasing operational efficiency. Progress was evident worldwide, largely because we concentrated on executing our proven strategy of building responsive, efficient foodservice businesses that partner with an increasing number of independent customers in the freetrade channel. Freetrade has become the central pillar of our business. Penetration of this sector varies across regions. In view of our decentralised business model, this is to be expected. However, the overall trend is plain. The contribution of low-margin large-scale business is gradually being reduced while freetrade continues to grow. Bidcorp’s ‘all about the food’ philosophy adds substantial value for these customers. Here, we provide solutions and develop products that address specific needs among independent operators who have an entrepreneurial mindset that is similar to our own. Engagement is greater. Margins are higher. Risks are lower. Volumes in this segment are not only growing because we win more and more independent customers, but because we help existing customers grow their businesses. A spirit of partnership is natural when you and your customers are all about the food. 2018 all about steady growth Group figures for continuing operations confirm sustained organic and acquisitive growth. Pleasing growth driven by our ‘all about the food’ focus Expansion into Germany, Austria, Portugal and Vietnam Freetrade strategy a platform for sustained gains Greater collaboration across national teams Trading profit 8,7% higher at R6,0 billion Net revenue from continuing operations up 8,0% at R119,4 billion Ecommerce underpins solid gains Food safety awareness built into culture Chief executive’s report 16 Bid Corporation Limited Annual integrated report 2018 Bernard Berson Chief executive