Volumes recovering faster than thought, Bidcorp says
Group sales have been hit by the Covid-19 pandemic, but is optimistic about a recovery in the food services sector
Bidcorp, the global food services company spun off from Bidvest in 2016, said the post-Covid-19 recovery had been faster than expected, and it was somewhat more optimistic about the next 12-18 months.
The group, which delivers to the food services industry, said its initial assessment was that activity levels would return to between 75% and 85% of pre-Covid-19 levels over the next year or so, but that “we now believe this number will be higher and hopefully sooner.”
“We believe that there will not be any fundamental shift in consumer behaviour of eating-away-from-home, and early anecdotal evidence suggests that human muscle memory in respect of socialisation remains an important component of the consumers existence,” the group said in a trading update.
“Our businesses are preparing to ride out the next phase of the economic recovery with these activity levels in mind,” the update reads.
Bidcorp said group sales for the week ended April 5 had reached a low of 37% of the corresponding week in 2019, but had recovered to about 65% in the week ended May 31.
For the week ended June 14, sales had improved to 67% year on year, the group said.
Bidcorp said headline earnings per share for its year to end-June were expected to be at least 20% lower than the prior comparative period, but that it may issue a more detailed trading update in coming weeks.
In morning trade Bidcorp’s share price was down 2.25% to R257.56, having fallen 22% so far in 2020.