TRADE OF THE MONTH: Bidvest vs Bidcorp
Bidcorp is on a high — and nowhere near running out of steam
Bidvest or Bidcorp? It’s a choice investors have been confronted with since Bidvest unbundled the international food services business on May 30 last year. The answer seems cut and dried on the growth prospects of the two companies: go long on Bidcorp and short on Bidvest. Bidvest founder Brian Joffe left little doubt about his view when he opted to become Bidcorp’s executive chairman. "It’s my baby," Joffe said at the presentation to analysts of Bidcorp’s results for the six months to December. It should come as no surprise. When Joffe founded Bidvest in 1989 armed with R8m capital, he chose food services as the foundation of a corporate empire that today weighs in with a combined market capitalisation of R143bn. Bidcorp accounts for R89bn of that.
Size-wise, Bidcorp is a very big baby. With operations in 34 countries on five continents, the R140bn annual revenue company serves more than 300,000 customers through 260 warehouses with a combined floor space of 1.3m m². It is th...
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