CHALLENGING CONDITIONS
Bidvest manages to lift interim revenue
The diversified industrial company says five of its seven core divisions maintained or increased margins
The Bidvest Group says it has delivered a satisfactory result in the six months to December 2016 against a backdrop of "significant and continuing market challenges". The diversified industrial company, which spun off its foodservice business as Bidcorp in May 2016, said five of its seven core divisions had maintained or increased margins through better efficiencies and cost control. Group revenue rose 4.1% to R36bn and the gross profit margin was stable. But Mark Hodgson, an analyst at Avior Capital Markets, said on Monday it was an "indifferent" performance by Bidvest that delivered marginally below real earnings growth. "A strong associate earnings performance offset a disappointing Bidvest Namibia contribution." Associate companies Adcock Ingram and Comair saw strong profit gains. Bidvest Namibia, though, was hit by a fall in fishing quotas and poor economic conditions in that country. However, Bidvest said domestic operations had delivered a good trading profit, up 6.2%, despit...
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