Bidcorp delivered an excellent performance for the year ended June 2024, against the backdrop of
a turbulent and challenging world, beset with anaemic, stagnant, and sometimes negative economic
growth. Our top line has grown by 15,1% (7,5% in constant currency) and after adjusting for our estimated
weighted food-basket inflation, we have achieved real organic volume growth of almost 6%. Almost every
business has improved its performance against their previous record achievements of F2023, and our
global teams are to be highly commended on continuing to successfully deliver on our strategy.
Headline earnings per share (HEPS) increased by 15,5% to 2 405,5 cents per share (F2023: 2 082,9 cents
per share), with basic earnings per share (EPS) increasing by 16,0% to 2 392,6 cents per share (F2023:
2 061,8 cents per share). Currency volatility positively impacted the rand-translated HEPS by 6,4%.
Europe delivered another record performance with almost every business growing well ahead of F2023.
While Australasia's revenue growth moderated in tough economic conditions, both Australia and New
Zealand delivered strong trading results. The UK weathered a challenging environment but delivered a
strong second-half to end flat on F2023. Good volume growth from contract wins and acquisitions
benefited profitability. Emerging Markets reflected mixed performances with a strong result out of our
South African businesses, which was offset by the weaker trading in Greater China.
Activity levels were weaker through the backend of H1, however, recovered into the latter part of H2
despite a very poor start to this year's Northern Hemisphere summer. Moderating food inflation throughout
the year and difficult economic conditions resulted in customers becoming more price sensitive as
competition increased. Our focus on improving the mix of sales particularly in the independent segments
assisted in protecting our gross margins. Cost inflation has eased from the prior year, however, wage
pressures remain as we build our workforce for stability and the increased scale of the business.
Investment activity has been robust as we expand our infrastructural capacity in many regions, particularly
Australia, the UK, and in Italy. Four small bolt-on acquisitions were concluded in the year.
Distribution
The board has declared a final cash dividend of 565,0 cents per share for the year ended June 30 2024
(F2023: 500,0 cents per share), a total dividend increase on prior year of 16,0% and representing
approximately 2,2 times HEPS cover, broadly in line with group policy.
Financial overview
Net revenue of R225,9 billion (F2023: R196,3 billion) rose by 15,1% (constant currency increase of 7,5%)
in an environment of rapidly moderating food inflation and weak consumer demand.
Gross profit percentage at 24,1% (F2023: 23,8%) improved as businesses continued to refine their sales
mix by focusing on the correct customer base. Declining food inflation reduced the occurrence of product
buying opportunities. Margins benefited from flexibility in managing the trading volatility which saw the
need to either sacrifice margin to maintain volumes, and vice versa.
The overall cost-of-doing-business increased slightly from 18,5% in F2023 to 18,7%, the largest input
being labour which accounts for around two-thirds of the cost base. Although cost inflation is decelerating,
the cost of new capacity, which takes time to reach scale and efficiency, has impacted negatively. Our
businesses are efficient and operate a high-service model, yet we remain alert to cost-saving opportunities,
particularly through the deployment of technology.
Group trading profit increased by 15,9% to R12,2 billion (F2023: R10,5 billion) and 9,4% in constant
currency. Trading profit margins improved to 5,4% (F2023: 5,3%), a good achievement considering the
more challenging trading conditions.
Net finance charges (excluding IFRS 16 charges) were higher by 14,2% at R580,6 million (F2023:
R508,6 million) as anticipated, driven by higher investments into working capital, expansionary facility
investments, and a higher interest rate environment across the globe.
Overall cash flow has been solid but impacted by the investment being made into the businesses. Cash
generated by operations before working capital was R15,4 billion, some 13% ahead of F2023. Although
we absorbed working capital of R1,6 billion, R1,2 billion more than F2023, all metrics were in line with
F2023. Average annual working capital days at 9,6 days were 1,6 days better than F2023 and
the working capital percentage to revenue at 3,2% (F2023: 3,0%) is well within our normalised target.
Gross capital investments in property, plant, and equipment of R6,0 billion (F2023: R4,4 billion) includes
R3,1 billion of expansionary investments in new capacity, the largest portion of which has been in Australia
and the UK.
Non-IFRS 16 net debt to EBITDA at 0,2 times is in line with F2023, better than expectations considering
the working capital and capital investments made. Interest cover is also similar to F2023 at 23,2 times,
both of these well within group covenants.
Strategy
Bidcorp's overall strategic focus remains on track in the wholesaling of food and allied products to
the eating-out-of-home market; through developing our own/house brand and imports; moving into
niche value-add manufacturing; focusing on growth through selling to the correct mix of customers;
serviced by well-located infrastructure; and enabled by world-class technology solutions. Growth is
further supplemented by in-territory bolt-on acquisitions to expand geographic reach and product
range, or via strategic acquisitions to enter new markets.
The interaction of these various components is what continues to propel our business forward, and those
businesses that get more of these components in sync are the ones that continue to perform strongest.
Each business is at differing stages of maturity and development along our foodservice continuum. We
encourage cooperation and sharing of ideas and learnings, recognising each business' autonomy and,
although we manage each independently, we aim to maximise the benefit of our global scale, experience,
expertise, and combined IP for the collective benefit of Bidcorp.
Prospects
The long-term growth fundamentals of the global foodservice industry remain positive although the
economic outlook for many of our jurisdictions is tougher in the short term. Food inflation has abated,
however, cost inflation, driven by elevated ongoing wage increases, is likely to remain sticky. Consumer
spend will remain under pressure until interest rates start to decline materially. Activity levels through July
and into August have held up reasonably well, considering the poor summer weather in many countries
in the Northern Hemisphere.
Investments into strategic distribution facilities to provide for future capacity and value-add manufacturing
have been budgeted for. While this investment comes at a cost and detracts from short-term performance,
they remain the correct long-term decisions to ensure the sustainability of the businesses. New technologies
for renewable energy, refrigeration, energy efficiency, and logistics optimisation in an environmentally and
cost-efficient way remains a strategic imperative to minimising our environmental impact.
Although only four bolt-on acquisitions were concluded in the past financial year, two more have been
done post-yearend, with a further one to complete in September. There appears to be a larger number
of opportunities currently presenting themselves, both in-country expansion as well as new geographies.
We are alert to these opportunities, however, the successful completion thereof cannot be guaranteed.
We are actively investigating AI solutions to maximise sales opportunities, margin optimisation, inventory
management, as well as operating efficiencies through utilising the collective knowledge of our businesses
operating in multiple geographies, as well as our significant data holdings. Continued investment is being
made into BidOne's ecommerce and customer relationship platforms to enhance customer experiences,
streamline operations and promote continuous improvement.
Despite the many negatives that pervade the global environment currently, our focus is as much as
possible on what we can control and not on what we cannot. We believe we have the right strategy,
the best management teams and people, and the business model to continue to perform, adapting
and maximising the opportunities which inevitably arise. One of our founding motto's was "we are not
participating in the recession" and therefore we are budgeting to once again deliver real growth in the
year ahead.
TRADING MARGIN
ANNUAL OPERATIONS RETURNS
HEADLINE EARNINGS PER SHARE
DIVIDEND PER SHARE (CENTS)
DIVISIONAL REVIEW
Australasia
Both Australia and New Zealand delivered strong trading results despite weaker economic conditions,
particularly in New Zealand. Growth in both revenue and trading profit was achieved off an incredibly
strong prior-year performance. Consumer sentiment in Australia and New Zealand was dampened by
the impact of ongoing inflationary and interest rate pressures, yet despite this revenue grew 5,5% to
R46,8 billion (F2023: R44,3 billion). Benefiting from excellent margin and cost management, trading profit
was up 12,9% to R4,0 billion (F2023: R3,5 billion). Management focused on growth opportunities working
closely with their customers to unlock mutually beneficial opportunities, creating value in the manufacturing
and procurement offering.
In F2023, Australia delivered a year of strong activity, achieving a record financial performance – F2023
was always going to be a hard act to follow and yet in F2024 the previous year's highs were exceeded.
Sales growth was modest, coming off a high base and impacted by a rapid fall-off in food inflation – from
16,7% in July 2023 to just 1,4% in June 2024. During this time, household expenditure was weak, it was
estimated that consumer confidence was at its lowest level in almost three decades.
Costs were well contained, particularly in light of soaring labour and energy costs, while record EBIT, both
in Australian dollar and percentage terms, was strong, achieving results that are double those of a decade
ago.
Foodservice maintained a healthy performance, navigating the cost-of-living crisis. Continued focus was
on the "right" customer, being the independent or freetrade operators. Supply Solutions (responsible for
sourcing imports) performed exceptionally well amid ongoing supply shortages. Simply Food Solutions
(our manufacturing arm) was another standout performer, benefiting from an enhanced range and greater
customer uptake. As in the prior year, liquor made a growing contribution.
Malaga (our second Perth facility) and Darwin (a replacement facility) were opened, and the Dubbo
acquisition (with effect from September 2023) was finalised. Depot expansions in Emerald and Toowoomba
(both in Queensland) were substantially completed in the year. This expansion phase has resulted in
elevated costs but is anticipated to be offset by the efficiencies as the new capacity is absorbed through
higher revenue generation.
Apart from an overall lacklustre economy, an abnormally wet summer and dampened consumer
confidence, challenges included labour shortages, in particular finding delivery drivers. Despite these
issues, opportunities abound. These opportunities include our ability to grow the light-manufacture issues
and embrace the efficiencies provided through technology, including AI.
Our ESG credentials are a competitive advantage as more and more customers question us about our
environmental and social impacts. We are doubling our scale in both Perth and the Northern Territory
but will experience only a negligible increase in energy consumption, such are the efficiencies created.
We increased our solar power generation with nine new solar installations, with more to come in F2025.
Market conditions are likely to remain very challenging in F2025, but we anticipate that our expansionary
capital investments of recent years, coupled with the abilities of our people and our environmental
initiatives, will continue to drive our record-breaking performance.
New Zealand started their year well, but tough economic conditions saw the hospitality and tourism
markets come under increasing pressure through the period. With the economy in recession, and interest
rates remaining high, consumer sentiment turned negative and while tourism numbers improved, they
remain well short of pre-COVID-19 levels. Against this backdrop, our team once again excelled under
difficult circumstances.
Sales were only marginally up, reflecting the challenging trading conditions. Volume decreases following
our exit from a large QSR customer in October 2022 were replaced and, in some cases, exceeded
previous levels. Margins though held up well, improving on the prior year, and expenses were well
controlled. Improved margins achieved in the year were attributable to our Own Brand range – both
imported and manufactured – making an increasingly significant contribution. Another success was the
continued growth in the alcohol category – although off a relatively low base.
Simply Food Solutions was a standout success, boosting revenue results and improving trading profit
margins. Driving these outcomes were our Own Brand range, growth in airline catering, and the
automation of some processing activities. Despite persistent supply-chain difficulties, imports returned
an excellent result. Simply Food Solutions was launched in the year as a separate brand and the meat
business was rebranded as Aspire Foods.
Labour costs and staff attrition, especially in the warehouse and distribution teams, are expected to ease
as the tough economic conditions dampen wage inflation. There is a heightened focus on training, and
boosting employees' skills is to be continued.
Facing growing capacity constraints, we commenced a long-term programme to invest in additional
capacity. In July 2024, a new site in Taupo in the centre of North Island was opened and construction
has started in Wellington for a new foodservice distribution centre, with an April 2025 completion date.
A further branch is planned for Waipapa (in the far north) with an October 2025 targeted completion date.
Approval was also granted for a new, much-needed, Christchurch processing facility for Aspire Foods,
which is expected to be completed by early 2026.
Difficult trading conditions are expected to persist well into F2025 as the economic sentiment remains
negative. However, we are confident that our business will remain strongly profitably and cash flow positive.
United Kingdon (UK)
Improvements in the UK, both in the economy and in our business are starting to appear. Consumer
sentiment is improving, despite a disappointing start to the summer. Food inflation continues to moderate,
with energy costs and interest rates stabilising. Despite these trading conditions, Bidfood UK grew revenue
24,4% to R63,9 billion (F2023: R51,4 billion). Trading profit, albeit flat in sterling terms, reflected a
much-improved H2, ending up at 9,6% at R2,1 billion (F2023: R1,9 billion).
The Wholesale business – accounting for 60% of activity – achieved an excellent top-line improvement.
A focus on growing market share was achieved by winning new accounts but sacrificing some margin
to achieve this growth. Successful price reviews were implemented, restoring wholesale customer margins
to more acceptable levels. Significant additional costs were incurred by investing in new depots and
infrastructure to meet increasing volumes, the benefits of which will become evident as these sites
become fully operational and efficient.
Caterfood Buying Group (CBG) benefited from the full contribution from the prior-year acquisitions
of Thomas Ridley and Harvest Fine Foods. Through developing and improving buying synergies, as well
as capturing resource and transport efficiencies, CBG's performance improved in H2 and into the 2024
summer, a trend that is expected to continue. A new acquisition, Turner Price, has been completed,
effective July 2024, further bolstering CBG's independent reach into the market.
Fresh's overall performance was broadly in line with that of the prior year in terms of both revenue
and profits. Costs were well contained, and the division's prospects remain positive. Manufacturing
was profitable although down off F2023 due to having to navigate some abnormal one-off costs.
Overheads were higher than the prior year, largely driven by an increase in headcount. This rise in
employment – and the need to reward staff for going above and beyond to deliver an outstanding
result under trying circumstances – translated into higher payroll costs. Management focused on the
programmes to support the wellbeing and skills levels of the team.
Bidfood UK's total asset base stands at over £1 billion, a 25% increase over four years, across a
considerably larger national footprint. Developing infrastructure – both new sites and renovations of
existing ones – continued during the year with the completion and activation of both the new Glasgow
and Bedford sites. This asset investment has created a sizeable capacity for additional volume growth
and greater market reach. Further investments are being planned.
Through digitising the operating environment with an advanced stock management solution being
deployed, enabled improving efficiencies across the service offering. Improving the customer experience,
featuring shared roadmap visibility on the ecommerce platform, as well as the activation of personal
recommendations and "fuzzy search" functionality was implemented.
The ESG team have published a series of communications to help create a better-shared understanding
of future plans and commitments – and what this means to our future success. Progress has been made
in the quantification and impact of supply chain scope 3 emissions. Investments continue to be made into
solar power generation and in improving on-site recycling. Our sustainability and profitability journey will
continue to be pursued with vigour.
Europe
Europe has been a star performer over the past two years, and continues to perform very well, just at a
much more normalised rate of growth. General trends we are seeing across Europe are sluggish demand,
rapidly declining food inflation and wage cost pressure. Revenue was up 17,9% to R82,0 billion (F2023:
R70,0 billion). Trading profit results were even better with a 21,6% increase to R4,5 billion (F2023: R3,7 billion).
The businesses navigated cost volatility and ongoing supply chain disruptions in both inventory and capital
products – yet still delivered a record performance.
Netherlands posted another excellent result, outstripping the record achievements of F2023 when
revenue exceeded €1 billion. National accounts delivered good results. Growth in the freetrade sector
was exceptional, with the catering and healthcare segments also contributing.
Gross margins were marginally higher while excellent cost management contributed to a strong result.
Energy and fuel costs remained elevated but were largely mitigated by efficiency improvements.
Depreciation costs also rose following the capital investments in F2023 (Zierikzee and Meppel).
Construction of a new property in The Hague continued with completion expected in March 2025.
Environmental issues occupied much of management's attention in preparation to meet the European
Union's Corporate Sustainability Reporting Directive requirements. This included establishing robust
benchmarks for the material issues identified in consultation with stakeholders.
Belgium had another solid year with revenue holding up well where mixed consumer sentiment and
strained circumstances facing the hospitality market. Trading profit benefited from lower inflation and
energy costs.
The exit of a low-margin logistics account in the Thuin operations in July 2023 improved its profitability.
Institutional sales in Kruibecke increased, benefiting from the focus on the customer profile. Performance
benefited from internal efficiencies. Expenses were well managed.
Capex was focused on investment in IT and trucks. 100% green energy went live at all six sites, with additional
investment in battery solutions envisaged. A sizeable acquisition is to be completed in September 2024.
Czech Republic and Slovakia reported robust results in the face of subdued domestic demand with
consumer sentiment remaining fragile. Inflation, which in the prior year was the highest in Europe, fell
sharply. Energy prices also eased, although remained elevated against historic norms. Boosting results
was a more normalised supply chain, while staffing remained a challenge with unemployment dipping
below 3%.
Manufacturing performed to high expectations, particularly in ready meals, sous-vide, and ice cream
categories. Investment into growing capacity in Slovakia continued and construction of a South Bohemia
depot began. Embedded solar generation increased with installations in six sites. With staff retention a
focus, investment in training and development was a priority. Prospects for the new year remain positive.
Poland succeeded in boosting sales and trading profit in an environment of slowing economic growth and
reduced consumer spending. Headwinds included steeply rising operating expenses, with little to no food
inflation, and an 18% increase in minimum wages in January.
Pleasingly, most of the business's growth came from the freetrade segment, with capacity created
following the exit of two low-margin national accounts. A new Wroclaw depot was opened, and work is
ongoing to implement a new, state-of-the-art warehouse management system. Further solar investments
into the Poznan depot, and additional green efficiency initiatives, were implemented.
DAC Italy continued to deliver good results, the business benefited from the overall cost-of-doing-business
easing. The new Rome depot became fully operational in Q4 – but its startup costs weighed on
profitability in the quarter.
Contributing to the F2024 performance was an increase in the customer base – notably in the horeca
sector, our group's "sweet spot" and an area in which DAC has traditionally excelled. All product categories
– ambient, chilled, frozen, and "non-food" contributed to profit growth although margins were impacted by
commodity price increases for products such as tomatoes, pasta, flour, and frozen seafood. This pleasing
outcome was underpinned by Italian's eat-out-of-home culture and by a strong tourism sector.
Spain experienced a return to economic growth with declining food inflation, but energy and wage
costs continued to escalate. All operations maintained the positive momentum of the prior year. Guzman
succeeded in consistently reporting monthly profits, increasing contributions from categories other than
fresh. Igartza continued its strong performance with a focus on cost containment in a tougher environment.
Euskopan, the new acquisition, contributed for a full year under our control and returned a strong EBIT
contribution. Capacity is being tripled in Barcelona, while growing the national reach with smaller, regional
players. Synergies between the three operations continue to be explored. At year end, several bolt-on
acquisitions were being pursued.
Portugal struggled slightly as people's propensity to eat-out-of-home was dampened by the rising
cost-of-living and high interest rates. The impact was heightened due to our national accounts' exposure,
which felt the economic pinch more than most. Despite these challenges, the business is focusing on
pricing strategies and market positioning. myBidfood went live and the sales force was expanded to
grow the freetrade sector. Construction of the new Sintra depot in Lisbon, delayed by legalities, is now
underway while capacity expansion is also being added to the Porto warehouse. Bolt-on acquisitions are
being considered.
Baltics' operations in Lithuania, Latvia, and Estonia all grew sales by double-digits in F2024, notably in the
independent segment, despite contracting GDP in all three countries. For the first time, revenue topped
€100 million. Winning market share, an expansion in the product range and embracing technology,
specifically myBidfood, was key to this success. An acquisition to grow the specialist product range
in Latvia was completed post-year end and further capacity expansion is being progressed.
Germany's results disappointed with sales and trading profit declining relative to the prior year. Margins
were lost in a pricing war in a declining market. Several remedial actions were taken, including an
operational team restructuring and a depot footprint restructuring to improve efficiencies and create a
base for growth. The (small) acquisition of a bakery specialist business is expected to create cross-selling
opportunities.
Emerging Markets
Emerging Markets delivered a positive overall performance, consolidating a mixed bag of results
across a diverse spread of economic market challenges. Revenue was up 7,0% to R33,2 billion
(F2023: R31,1 billion) and trading profits improved by 16,4% to R1,8 billion (F2023: R1,6 billion).
South Africa was a standout performer achieving over 20% profit growth. South America, although
struggling economically, delivered solid results, especially Argentina. The Middle East recovered well but
was impacted by the boycott of Western products. Türkiye, completing its investment phase, is set to
grow sales and profitability. Greater China's performance remains below par in a difficult environment.
Singapore is bedding down a new management team and Malaysia performed well.
Bidcorp Food Africa (BCFA), including Bidfood South Africa (BSA), Crown Food Group (CFG), and the
Chipkins Puratos JV posted outstanding results in an environment of limited economic growth, periodic
power outages, high unemployment, and ongoing pressure on consumer spending exacerbated by rising
interest rates. BCFA's growth prospects are promising.
BSA delivered a pleasing result, achieving sales growth above overall foodservice growth, particularly
in the street trade segment. Expenses were well contained and trading margins were maintained with
excellent return on funds employed achieved.
A new multi-temp facility (in Alberton, Johannesburg South) opened in the year. Solar projects were
advanced across a number of new and existing sites. A frozen foodservice business in the Eastern Cape
was acquired during the year.
CFG delivered an excellent performance, making up much of the ground lost in the prior year. Shortages
of raw material inputs were addressed and implementing a national pricing policy contributed. Managing
costs and inventory levels were areas of particular success. Competition to match CFG's hugely successful
Six Gun Grill spice intensified but the brand remains strong. Good growth was achieved in the wholesale,
out-of-home and dairy segments.
Chipkins Puratos (50% equity-accounted JV) grew trading profit through good margin expense
management.
Bidfood Middle East (BME) ended the year stronger than in the first half as sales and trading profits
recovered. Regional instability impacted supply chains – and costs – while boycotts of Western products,
particularly in Saudi, impacted trading volumes. Oman, Bahrain, and the UAE performed well, while Saudi
and Jordan disappointed. The UAE benefited from a product range diversification, bolstered by digitising
the customer experience through the myBidfood implementation, winning new customers.
Türkiye achieved record sales growth – doubling turnover in Turkish lira. However, this growth was
at lower gross margins and considerably higher operating expenditure as the depot rollout gained
momentum. A rapid increase in interest rates, extremely high inflation, higher wage costs, and the
depreciation of the local currency contributed to lower profitability.
Singapore had a challenging first half which was turned around as management changes were bedded
down. Bidfood Innovations (our bespoke production arm) delivered an outstanding performance in the
second six months. Tight margin management and a close focus on operating costs sustained profitability.
Closer collaboration between Bidfood, Gourmet Partner, and Bidfood Innovations sales teams gained
momentum.
Malaysia recorded very strong sales growth but competition forced us to sacrifice margins on many
lines. Despite this, keeping a close eye on operating expenses and working capital boosted profitability.
Consolidating local operations promises expansion of national reach. Skills scarcity and warehousing
capacity remain a challenge; the latter challenge being addressed with a significant new investment
in F2025.
Greater China (including Hong Kong) clawed back on a disappointing first half, returning an EBIT well
below that of F2023. The business struggled through weak economic growth. Inbound tourism to Hong
Kong continued at disappointingly low levels while the expatriate community continued to contract. In the
second half, margins improved in both regions while operating expenditure in China was particularly well
contained. Management continues to focus on winning market share and managing costs down. Some
small, adjacent businesses were disposed of and leadership moved to pivot to meet the increasing
demand for Asian foods.
Brazil's political climate hurt consumer spending, affecting the out-of-home market. Under trying
circumstances, Brazil continued to trade consistently profitably although sales were largely flat. Bolstering
the trading result was a close management of margins and operating expenses. Several marketing drives
were successfully implemented, focusing on the freetrade and SME/owner-run segments. The "Gourmet
Route", in which seasoned chefs visit potential client sites, was a particular success, translating into
sizeable new-business wins.
Chile improved its performance in a strengthening economy, as interest rate decreases spurred economic
activity. Customers exposed to the tourism sector fared better than most, boosting the operation's
branches. Success in growing the freetrade sector included a focus on smaller butcheries. Both sales
and trading profit improved. The business completed the latest phase of an extensive infrastructural
investment programme by opening a depot in Santiago for transfers, imports, and cross-docking. The
Viña del Mar depot was redeveloped. The outlook for F2025 is positive with continued growth and
subdued inflation figuring in most forecasts.
Argentina (46% equity-accounted) navigated political and economic upheaval very successfully,
continuing to trade profitably, despite periods of high inflation and extreme price and currency volatility.
New operations in Iguazú and Ushuaia were successfully bedded down. myBidfood uptake among
customers was a highlight and many IT improvements were implemented.
Corporate
The BidOne digital commerce system has been adopted by 23 businesses in the group, including, new
implementations this year for Pier7 (Germany), Bidfood Portugal, and the Cimandis and Elite Fine Foods
businesses in the UK. This year, customers placed 10,2 million digital orders – a million more than the
previous year.
Future plans include leveraging machine learning to further refine and exploring new ways in which AI
can transform business operations. Our customer relationship management platform, BidIQ, experienced
substantial growth. This tool will enhance customer experiences, streamline operations and promote
continuous improvement.
BPC sources a wide variety of quality, ethically produced food and non-food items from a wide number
of suppliers worldwide. F2024 was an exceptional year for BPC as the community grew its reach in
terms of the quantum and variety of products procured and the number of business units supplied.
BL Berson Chief executive officer
DE Cleasby Chief financial officer
DIVIDEND DECLARATION
In line with the group dividend policy, the directors declared a final cash dividend of 565,0 cents
(452,0 cents net of dividend withholding tax, where applicable) per ordinary share for the year ended
June 30 2024 to those members registered on the record date, being Friday, September 27 2024.
The dividend will be paid out of income reserves. A dividend withholding tax of 20% is applicable to all
shareholders who were not exempt.
Share code:
BID
ISIN:
ZAE000216537
Company registration number:
1995/008615/06
Company tax reference number:
9040946841
Gross cash dividend amount per share:
565,0 cents
Net dividend amount per share:
452,0 cents
Issued shares at declaration date:
335 404 212
Declaration date:
Wednesday, August 28 2024
Last day to trade cum dividend on the JSE:
Monday, September 23 2024
First trading day ex dividend on the JSE:
Wednesday, September 25 2024
Record date:
Friday, September 27 2024
Payment date:
Monday, September 30 2024
Share certificates may not be dematerialised or rematerialised between Wednesday, September 25 2024 to Friday, September 27 2024, both days inclusive.
COMMENT
Bidcorp delivered an excellent performance for the year ended June 2024, against the backdrop of a turbulent and challenging world, beset with anaemic, stagnant, and sometimes negative economic growth. Our top line has grown by 15,1% (7,5% in constant currency) and after adjusting for our estimated weighted food-basket inflation, we have achieved real organic volume growth of almost 6%. Almost every business has improved its performance against their previous record achievements of F2023, and our global teams are to be highly commended on continuing to successfully deliver on our strategy.
Headline earnings per share (HEPS) increased by 15,5% to 2 405,5 cents per share (F2023: 2 082,9 cents per share), with basic earnings per share (EPS) increasing by 16,0% to 2 392,6 cents per share (F2023: 2 061,8 cents per share). Currency volatility positively impacted the rand-translated HEPS by 6,4%.
Europe delivered another record performance with almost every business growing well ahead of F2023. While Australasia's revenue growth moderated in tough economic conditions, both Australia and New Zealand delivered strong trading results. The UK weathered a challenging environment but delivered a strong second-half to end flat on F2023. Good volume growth from contract wins and acquisitions benefited profitability. Emerging Markets reflected mixed performances with a strong result out of our South African businesses, which was offset by the weaker trading in Greater China.
Activity levels were weaker through the backend of H1, however, recovered into the latter part of H2 despite a very poor start to this year's Northern Hemisphere summer. Moderating food inflation throughout the year and difficult economic conditions resulted in customers becoming more price sensitive as competition increased. Our focus on improving the mix of sales particularly in the independent segments assisted in protecting our gross margins. Cost inflation has eased from the prior year, however, wage pressures remain as we build our workforce for stability and the increased scale of the business.
Investment activity has been robust as we expand our infrastructural capacity in many regions, particularly Australia, the UK, and in Italy. Four small bolt-on acquisitions were concluded in the year.
Distribution
The board has declared a final cash dividend of 565,0 cents per share for the year ended June 30 2024 (F2023: 500,0 cents per share), a total dividend increase on prior year of 16,0% and representing approximately 2,2 times HEPS cover, broadly in line with group policy.
Financial overview
Net revenue of R225,9 billion (F2023: R196,3 billion) rose by 15,1% (constant currency increase of 7,5%) in an environment of rapidly moderating food inflation and weak consumer demand.
Gross profit percentage at 24,1% (F2023: 23,8%) improved as businesses continued to refine their sales mix by focusing on the correct customer base. Declining food inflation reduced the occurrence of product buying opportunities. Margins benefited from flexibility in managing the trading volatility which saw the need to either sacrifice margin to maintain volumes, and vice versa.
The overall cost-of-doing-business increased slightly from 18,5% in F2023 to 18,7%, the largest input being labour which accounts for around two-thirds of the cost base. Although cost inflation is decelerating, the cost of new capacity, which takes time to reach scale and efficiency, has impacted negatively. Our businesses are efficient and operate a high-service model, yet we remain alert to cost-saving opportunities, particularly through the deployment of technology.
Group trading profit increased by 15,9% to R12,2 billion (F2023: R10,5 billion) and 9,4% in constant currency. Trading profit margins improved to 5,4% (F2023: 5,3%), a good achievement considering the more challenging trading conditions.
Net finance charges (excluding IFRS 16 charges) were higher by 14,2% at R580,6 million (F2023: R508,6 million) as anticipated, driven by higher investments into working capital, expansionary facility investments, and a higher interest rate environment across the globe.
Overall cash flow has been solid but impacted by the investment being made into the businesses. Cash generated by operations before working capital was R15,4 billion, some 13% ahead of F2023. Although we absorbed working capital of R1,6 billion, R1,2 billion more than F2023, all metrics were in line with F2023. Average annual working capital days at 9,6 days were 1,6 days better than F2023 and the working capital percentage to revenue at 3,2% (F2023: 3,0%) is well within our normalised target.
Gross capital investments in property, plant, and equipment of R6,0 billion (F2023: R4,4 billion) includes R3,1 billion of expansionary investments in new capacity, the largest portion of which has been in Australia and the UK.
Non-IFRS 16 net debt to EBITDA at 0,2 times is in line with F2023, better than expectations considering the working capital and capital investments made. Interest cover is also similar to F2023 at 23,2 times, both of these well within group covenants.
Strategy
Bidcorp's overall strategic focus remains on track in the wholesaling of food and allied products to the eating-out-of-home market; through developing our own/house brand and imports; moving into niche value-add manufacturing; focusing on growth through selling to the correct mix of customers; serviced by well-located infrastructure; and enabled by world-class technology solutions. Growth is further supplemented by in-territory bolt-on acquisitions to expand geographic reach and product range, or via strategic acquisitions to enter new markets.
The interaction of these various components is what continues to propel our business forward, and those businesses that get more of these components in sync are the ones that continue to perform strongest. Each business is at differing stages of maturity and development along our foodservice continuum. We encourage cooperation and sharing of ideas and learnings, recognising each business' autonomy and, although we manage each independently, we aim to maximise the benefit of our global scale, experience, expertise, and combined IP for the collective benefit of Bidcorp.
Prospects
The long-term growth fundamentals of the global foodservice industry remain positive although the economic outlook for many of our jurisdictions is tougher in the short term. Food inflation has abated, however, cost inflation, driven by elevated ongoing wage increases, is likely to remain sticky. Consumer spend will remain under pressure until interest rates start to decline materially. Activity levels through July and into August have held up reasonably well, considering the poor summer weather in many countries in the Northern Hemisphere.
Investments into strategic distribution facilities to provide for future capacity and value-add manufacturing have been budgeted for. While this investment comes at a cost and detracts from short-term performance, they remain the correct long-term decisions to ensure the sustainability of the businesses. New technologies for renewable energy, refrigeration, energy efficiency, and logistics optimisation in an environmentally and cost-efficient way remains a strategic imperative to minimising our environmental impact.
Although only four bolt-on acquisitions were concluded in the past financial year, two more have been done post-yearend, with a further one to complete in September. There appears to be a larger number of opportunities currently presenting themselves, both in-country expansion as well as new geographies. We are alert to these opportunities, however, the successful completion thereof cannot be guaranteed.
We are actively investigating AI solutions to maximise sales opportunities, margin optimisation, inventory management, as well as operating efficiencies through utilising the collective knowledge of our businesses operating in multiple geographies, as well as our significant data holdings. Continued investment is being made into BidOne's ecommerce and customer relationship platforms to enhance customer experiences, streamline operations and promote continuous improvement.
Despite the many negatives that pervade the global environment currently, our focus is as much as possible on what we can control and not on what we cannot. We believe we have the right strategy, the best management teams and people, and the business model to continue to perform, adapting and maximising the opportunities which inevitably arise. One of our founding motto's was "we are not participating in the recession" and therefore we are budgeting to once again deliver real growth in the year ahead.
TRADING MARGIN
ANNUAL OPERATIONS RETURNS
HEADLINE EARNINGS PER SHARE
DIVIDEND PER SHARE (CENTS)
DIVISIONAL REVIEW
Australasia
Both Australia and New Zealand delivered strong trading results despite weaker economic conditions, particularly in New Zealand. Growth in both revenue and trading profit was achieved off an incredibly strong prior-year performance. Consumer sentiment in Australia and New Zealand was dampened by the impact of ongoing inflationary and interest rate pressures, yet despite this revenue grew 5,5% to R46,8 billion (F2023: R44,3 billion). Benefiting from excellent margin and cost management, trading profit was up 12,9% to R4,0 billion (F2023: R3,5 billion). Management focused on growth opportunities working closely with their customers to unlock mutually beneficial opportunities, creating value in the manufacturing and procurement offering.
In F2023, Australia delivered a year of strong activity, achieving a record financial performance – F2023 was always going to be a hard act to follow and yet in F2024 the previous year's highs were exceeded. Sales growth was modest, coming off a high base and impacted by a rapid fall-off in food inflation – from 16,7% in July 2023 to just 1,4% in June 2024. During this time, household expenditure was weak, it was estimated that consumer confidence was at its lowest level in almost three decades.
Costs were well contained, particularly in light of soaring labour and energy costs, while record EBIT, both in Australian dollar and percentage terms, was strong, achieving results that are double those of a decade ago.
Foodservice maintained a healthy performance, navigating the cost-of-living crisis. Continued focus was on the "right" customer, being the independent or freetrade operators. Supply Solutions (responsible for sourcing imports) performed exceptionally well amid ongoing supply shortages. Simply Food Solutions (our manufacturing arm) was another standout performer, benefiting from an enhanced range and greater customer uptake. As in the prior year, liquor made a growing contribution.
Malaga (our second Perth facility) and Darwin (a replacement facility) were opened, and the Dubbo acquisition (with effect from September 2023) was finalised. Depot expansions in Emerald and Toowoomba (both in Queensland) were substantially completed in the year. This expansion phase has resulted in elevated costs but is anticipated to be offset by the efficiencies as the new capacity is absorbed through higher revenue generation.
Apart from an overall lacklustre economy, an abnormally wet summer and dampened consumer confidence, challenges included labour shortages, in particular finding delivery drivers. Despite these issues, opportunities abound. These opportunities include our ability to grow the light-manufacture issues and embrace the efficiencies provided through technology, including AI.
Our ESG credentials are a competitive advantage as more and more customers question us about our environmental and social impacts. We are doubling our scale in both Perth and the Northern Territory but will experience only a negligible increase in energy consumption, such are the efficiencies created. We increased our solar power generation with nine new solar installations, with more to come in F2025.
Market conditions are likely to remain very challenging in F2025, but we anticipate that our expansionary capital investments of recent years, coupled with the abilities of our people and our environmental initiatives, will continue to drive our record-breaking performance.
New Zealand started their year well, but tough economic conditions saw the hospitality and tourism markets come under increasing pressure through the period. With the economy in recession, and interest rates remaining high, consumer sentiment turned negative and while tourism numbers improved, they remain well short of pre-COVID-19 levels. Against this backdrop, our team once again excelled under difficult circumstances.
Sales were only marginally up, reflecting the challenging trading conditions. Volume decreases following our exit from a large QSR customer in October 2022 were replaced and, in some cases, exceeded previous levels. Margins though held up well, improving on the prior year, and expenses were well controlled. Improved margins achieved in the year were attributable to our Own Brand range – both imported and manufactured – making an increasingly significant contribution. Another success was the continued growth in the alcohol category – although off a relatively low base.
Simply Food Solutions was a standout success, boosting revenue results and improving trading profit margins. Driving these outcomes were our Own Brand range, growth in airline catering, and the automation of some processing activities. Despite persistent supply-chain difficulties, imports returned an excellent result. Simply Food Solutions was launched in the year as a separate brand and the meat business was rebranded as Aspire Foods.
Labour costs and staff attrition, especially in the warehouse and distribution teams, are expected to ease as the tough economic conditions dampen wage inflation. There is a heightened focus on training, and boosting employees' skills is to be continued.
Facing growing capacity constraints, we commenced a long-term programme to invest in additional capacity. In July 2024, a new site in Taupo in the centre of North Island was opened and construction has started in Wellington for a new foodservice distribution centre, with an April 2025 completion date. A further branch is planned for Waipapa (in the far north) with an October 2025 targeted completion date. Approval was also granted for a new, much-needed, Christchurch processing facility for Aspire Foods, which is expected to be completed by early 2026.
Difficult trading conditions are expected to persist well into F2025 as the economic sentiment remains negative. However, we are confident that our business will remain strongly profitably and cash flow positive.
United Kingdon (UK)
Improvements in the UK, both in the economy and in our business are starting to appear. Consumer sentiment is improving, despite a disappointing start to the summer. Food inflation continues to moderate, with energy costs and interest rates stabilising. Despite these trading conditions, Bidfood UK grew revenue 24,4% to R63,9 billion (F2023: R51,4 billion). Trading profit, albeit flat in sterling terms, reflected a much-improved H2, ending up at 9,6% at R2,1 billion (F2023: R1,9 billion).
The Wholesale business – accounting for 60% of activity – achieved an excellent top-line improvement. A focus on growing market share was achieved by winning new accounts but sacrificing some margin to achieve this growth. Successful price reviews were implemented, restoring wholesale customer margins to more acceptable levels. Significant additional costs were incurred by investing in new depots and infrastructure to meet increasing volumes, the benefits of which will become evident as these sites become fully operational and efficient.
Caterfood Buying Group (CBG) benefited from the full contribution from the prior-year acquisitions of Thomas Ridley and Harvest Fine Foods. Through developing and improving buying synergies, as well as capturing resource and transport efficiencies, CBG's performance improved in H2 and into the 2024 summer, a trend that is expected to continue. A new acquisition, Turner Price, has been completed, effective July 2024, further bolstering CBG's independent reach into the market.
Fresh's overall performance was broadly in line with that of the prior year in terms of both revenue and profits. Costs were well contained, and the division's prospects remain positive. Manufacturing was profitable although down off F2023 due to having to navigate some abnormal one-off costs.
Overheads were higher than the prior year, largely driven by an increase in headcount. This rise in employment – and the need to reward staff for going above and beyond to deliver an outstanding result under trying circumstances – translated into higher payroll costs. Management focused on the programmes to support the wellbeing and skills levels of the team.
Bidfood UK's total asset base stands at over £1 billion, a 25% increase over four years, across a considerably larger national footprint. Developing infrastructure – both new sites and renovations of existing ones – continued during the year with the completion and activation of both the new Glasgow and Bedford sites. This asset investment has created a sizeable capacity for additional volume growth and greater market reach. Further investments are being planned.
Through digitising the operating environment with an advanced stock management solution being deployed, enabled improving efficiencies across the service offering. Improving the customer experience, featuring shared roadmap visibility on the ecommerce platform, as well as the activation of personal recommendations and "fuzzy search" functionality was implemented.
The ESG team have published a series of communications to help create a better-shared understanding of future plans and commitments – and what this means to our future success. Progress has been made in the quantification and impact of supply chain scope 3 emissions. Investments continue to be made into solar power generation and in improving on-site recycling. Our sustainability and profitability journey will continue to be pursued with vigour.
Europe
Europe has been a star performer over the past two years, and continues to perform very well, just at a much more normalised rate of growth. General trends we are seeing across Europe are sluggish demand, rapidly declining food inflation and wage cost pressure. Revenue was up 17,9% to R82,0 billion (F2023: R70,0 billion). Trading profit results were even better with a 21,6% increase to R4,5 billion (F2023: R3,7 billion). The businesses navigated cost volatility and ongoing supply chain disruptions in both inventory and capital products – yet still delivered a record performance.
Netherlands posted another excellent result, outstripping the record achievements of F2023 when revenue exceeded €1 billion. National accounts delivered good results. Growth in the freetrade sector was exceptional, with the catering and healthcare segments also contributing.
Gross margins were marginally higher while excellent cost management contributed to a strong result. Energy and fuel costs remained elevated but were largely mitigated by efficiency improvements.
Depreciation costs also rose following the capital investments in F2023 (Zierikzee and Meppel). Construction of a new property in The Hague continued with completion expected in March 2025.
Environmental issues occupied much of management's attention in preparation to meet the European Union's Corporate Sustainability Reporting Directive requirements. This included establishing robust benchmarks for the material issues identified in consultation with stakeholders.
Belgium had another solid year with revenue holding up well where mixed consumer sentiment and strained circumstances facing the hospitality market. Trading profit benefited from lower inflation and energy costs.
The exit of a low-margin logistics account in the Thuin operations in July 2023 improved its profitability. Institutional sales in Kruibecke increased, benefiting from the focus on the customer profile. Performance benefited from internal efficiencies. Expenses were well managed.
Capex was focused on investment in IT and trucks. 100% green energy went live at all six sites, with additional investment in battery solutions envisaged. A sizeable acquisition is to be completed in September 2024.
Czech Republic and Slovakia reported robust results in the face of subdued domestic demand with consumer sentiment remaining fragile. Inflation, which in the prior year was the highest in Europe, fell sharply. Energy prices also eased, although remained elevated against historic norms. Boosting results was a more normalised supply chain, while staffing remained a challenge with unemployment dipping below 3%.
Manufacturing performed to high expectations, particularly in ready meals, sous-vide, and ice cream categories. Investment into growing capacity in Slovakia continued and construction of a South Bohemia depot began. Embedded solar generation increased with installations in six sites. With staff retention a focus, investment in training and development was a priority. Prospects for the new year remain positive.
Poland succeeded in boosting sales and trading profit in an environment of slowing economic growth and reduced consumer spending. Headwinds included steeply rising operating expenses, with little to no food inflation, and an 18% increase in minimum wages in January.
Pleasingly, most of the business's growth came from the freetrade segment, with capacity created following the exit of two low-margin national accounts. A new Wroclaw depot was opened, and work is ongoing to implement a new, state-of-the-art warehouse management system. Further solar investments into the Poznan depot, and additional green efficiency initiatives, were implemented.
DAC Italy continued to deliver good results, the business benefited from the overall cost-of-doing-business easing. The new Rome depot became fully operational in Q4 – but its startup costs weighed on profitability in the quarter.
Contributing to the F2024 performance was an increase in the customer base – notably in the horeca sector, our group's "sweet spot" and an area in which DAC has traditionally excelled. All product categories – ambient, chilled, frozen, and "non-food" contributed to profit growth although margins were impacted by commodity price increases for products such as tomatoes, pasta, flour, and frozen seafood. This pleasing outcome was underpinned by Italian's eat-out-of-home culture and by a strong tourism sector.
Spain experienced a return to economic growth with declining food inflation, but energy and wage costs continued to escalate. All operations maintained the positive momentum of the prior year. Guzman succeeded in consistently reporting monthly profits, increasing contributions from categories other than fresh. Igartza continued its strong performance with a focus on cost containment in a tougher environment. Euskopan, the new acquisition, contributed for a full year under our control and returned a strong EBIT contribution. Capacity is being tripled in Barcelona, while growing the national reach with smaller, regional players. Synergies between the three operations continue to be explored. At year end, several bolt-on acquisitions were being pursued.
Portugal struggled slightly as people's propensity to eat-out-of-home was dampened by the rising cost-of-living and high interest rates. The impact was heightened due to our national accounts' exposure, which felt the economic pinch more than most. Despite these challenges, the business is focusing on pricing strategies and market positioning. myBidfood went live and the sales force was expanded to grow the freetrade sector. Construction of the new Sintra depot in Lisbon, delayed by legalities, is now underway while capacity expansion is also being added to the Porto warehouse. Bolt-on acquisitions are being considered.
Baltics' operations in Lithuania, Latvia, and Estonia all grew sales by double-digits in F2024, notably in the independent segment, despite contracting GDP in all three countries. For the first time, revenue topped €100 million. Winning market share, an expansion in the product range and embracing technology, specifically myBidfood, was key to this success. An acquisition to grow the specialist product range in Latvia was completed post-year end and further capacity expansion is being progressed.
Germany's results disappointed with sales and trading profit declining relative to the prior year. Margins were lost in a pricing war in a declining market. Several remedial actions were taken, including an operational team restructuring and a depot footprint restructuring to improve efficiencies and create a base for growth. The (small) acquisition of a bakery specialist business is expected to create cross-selling opportunities.
Emerging Markets
Emerging Markets delivered a positive overall performance, consolidating a mixed bag of results across a diverse spread of economic market challenges. Revenue was up 7,0% to R33,2 billion (F2023: R31,1 billion) and trading profits improved by 16,4% to R1,8 billion (F2023: R1,6 billion). South Africa was a standout performer achieving over 20% profit growth. South America, although struggling economically, delivered solid results, especially Argentina. The Middle East recovered well but was impacted by the boycott of Western products. Türkiye, completing its investment phase, is set to grow sales and profitability. Greater China's performance remains below par in a difficult environment. Singapore is bedding down a new management team and Malaysia performed well.
Bidcorp Food Africa (BCFA), including Bidfood South Africa (BSA), Crown Food Group (CFG), and the Chipkins Puratos JV posted outstanding results in an environment of limited economic growth, periodic power outages, high unemployment, and ongoing pressure on consumer spending exacerbated by rising interest rates. BCFA's growth prospects are promising.
BSA delivered a pleasing result, achieving sales growth above overall foodservice growth, particularly in the street trade segment. Expenses were well contained and trading margins were maintained with excellent return on funds employed achieved.
A new multi-temp facility (in Alberton, Johannesburg South) opened in the year. Solar projects were advanced across a number of new and existing sites. A frozen foodservice business in the Eastern Cape was acquired during the year.
CFG delivered an excellent performance, making up much of the ground lost in the prior year. Shortages of raw material inputs were addressed and implementing a national pricing policy contributed. Managing costs and inventory levels were areas of particular success. Competition to match CFG's hugely successful Six Gun Grill spice intensified but the brand remains strong. Good growth was achieved in the wholesale, out-of-home and dairy segments.
Chipkins Puratos (50% equity-accounted JV) grew trading profit through good margin expense management.
Bidfood Middle East (BME) ended the year stronger than in the first half as sales and trading profits recovered. Regional instability impacted supply chains – and costs – while boycotts of Western products, particularly in Saudi, impacted trading volumes. Oman, Bahrain, and the UAE performed well, while Saudi and Jordan disappointed. The UAE benefited from a product range diversification, bolstered by digitising the customer experience through the myBidfood implementation, winning new customers.
Türkiye achieved record sales growth – doubling turnover in Turkish lira. However, this growth was at lower gross margins and considerably higher operating expenditure as the depot rollout gained momentum. A rapid increase in interest rates, extremely high inflation, higher wage costs, and the depreciation of the local currency contributed to lower profitability.
Singapore had a challenging first half which was turned around as management changes were bedded down. Bidfood Innovations (our bespoke production arm) delivered an outstanding performance in the second six months. Tight margin management and a close focus on operating costs sustained profitability. Closer collaboration between Bidfood, Gourmet Partner, and Bidfood Innovations sales teams gained momentum.
Malaysia recorded very strong sales growth but competition forced us to sacrifice margins on many lines. Despite this, keeping a close eye on operating expenses and working capital boosted profitability. Consolidating local operations promises expansion of national reach. Skills scarcity and warehousing capacity remain a challenge; the latter challenge being addressed with a significant new investment in F2025.
Greater China (including Hong Kong) clawed back on a disappointing first half, returning an EBIT well below that of F2023. The business struggled through weak economic growth. Inbound tourism to Hong Kong continued at disappointingly low levels while the expatriate community continued to contract. In the second half, margins improved in both regions while operating expenditure in China was particularly well contained. Management continues to focus on winning market share and managing costs down. Some small, adjacent businesses were disposed of and leadership moved to pivot to meet the increasing demand for Asian foods.
Brazil's political climate hurt consumer spending, affecting the out-of-home market. Under trying circumstances, Brazil continued to trade consistently profitably although sales were largely flat. Bolstering the trading result was a close management of margins and operating expenses. Several marketing drives were successfully implemented, focusing on the freetrade and SME/owner-run segments. The "Gourmet Route", in which seasoned chefs visit potential client sites, was a particular success, translating into sizeable new-business wins.
Chile improved its performance in a strengthening economy, as interest rate decreases spurred economic activity. Customers exposed to the tourism sector fared better than most, boosting the operation's branches. Success in growing the freetrade sector included a focus on smaller butcheries. Both sales and trading profit improved. The business completed the latest phase of an extensive infrastructural investment programme by opening a depot in Santiago for transfers, imports, and cross-docking. The Viña del Mar depot was redeveloped. The outlook for F2025 is positive with continued growth and subdued inflation figuring in most forecasts.
Argentina (46% equity-accounted) navigated political and economic upheaval very successfully, continuing to trade profitably, despite periods of high inflation and extreme price and currency volatility. New operations in Iguazú and Ushuaia were successfully bedded down. myBidfood uptake among customers was a highlight and many IT improvements were implemented.
Corporate
The BidOne digital commerce system has been adopted by 23 businesses in the group, including, new implementations this year for Pier7 (Germany), Bidfood Portugal, and the Cimandis and Elite Fine Foods businesses in the UK. This year, customers placed 10,2 million digital orders – a million more than the previous year.
Future plans include leveraging machine learning to further refine and exploring new ways in which AI can transform business operations. Our customer relationship management platform, BidIQ, experienced substantial growth. This tool will enhance customer experiences, streamline operations and promote continuous improvement.
BPC sources a wide variety of quality, ethically produced food and non-food items from a wide number of suppliers worldwide. F2024 was an exceptional year for BPC as the community grew its reach in terms of the quantum and variety of products procured and the number of business units supplied.
BL Berson
Chief executive officer
DE Cleasby
Chief financial officer
DIVIDEND DECLARATION
In line with the group dividend policy, the directors declared a final cash dividend of 565,0 cents (452,0 cents net of dividend withholding tax, where applicable) per ordinary share for the year ended June 30 2024 to those members registered on the record date, being Friday, September 27 2024.
The dividend will be paid out of income reserves. A dividend withholding tax of 20% is applicable to all shareholders who were not exempt.
Share certificates may not be dematerialised or rematerialised between Wednesday, September 25 2024 to Friday, September 27 2024, both days inclusive.
For and on behalf of the board
Johannesburg
August 28 2024