Bidcorp reports increase in four-month trading profit

Bidcorp’s 2025 financial year constant currency results to end-October reflect trading profit growth of about 10%, the group said on Tuesday.

This was achieved amid low food inflation, the international broad-line food service group said in a statement.

Constant currency headline earnings per share (HEPS) for July to October showed growth of about 8%.

The group said, however, that currency volatility had resulted in its rand-translated results being 3% lower.

With the group having more than 90% of its operations located outside SA, management continued to evaluate the constant currency performance of the businesses as the correct measure of performance, it said.

The group noted that consumer demand remained subdued as the cost-of-living crisis continued to affect spending in most countries. Though there had been interest rate cuts in many markets, consumer behaviour and sentiment had not improved yet.

“Observations from large retailers in many markets note that tough economic conditions are driving their customers to spend more in-home and are not eating out as much,” it said.

The group said shipping disruptions and supply chain difficulties remained.

Group revenues continued to reach record levels into the first week of November, increasing 7% in constant currency terms against the record performance in the comparative 2024 period.

For the four months to end-October, Australia’s trading profits were up “satisfactorily” on a 3% revenue increase. New Zealand’s start to the financial year represented one of the most challenging environments the group operated in. The wider hospitality market was under extreme pressure, with sales and trading profits largely flat.

Both the Australian and New Zealand businesses were starting to see some strong benefits from their manufacturing and import activities.

In Europe, sales increased by about 10% in constant currency despite the poor weather during the northern hemisphere summer and general economic pressures. Widespread flooding in Eastern Europe in September affected operations in the Czech Republic and Poland, but management was able to enact their disaster recovery plans, which limited the downside effect.

All businesses traded in line with expectations except for Germany, which struggled in an economy that was recessionary.

UK sales grew at 8% in constant currency, however, trading conditions were challenging with both an unseasonably wet summer and economic uncertainty after the elections in July, both of which affected footfall on the high streets, the number of consumers eating out, and spending on leisure and hotel stays.

“Notwithstanding the difficult environment, we have seen a meaningful improvement in gross margins and trading profits over the comparative [2024 financial year],” it said.

The group’s emerging markets region delivered “an overall solid” sales performance in the four months to end-October, growing 5% in constant currencies.

“SA again delivered an excellent all-time high performance,” it said. “The positive election outcome and uninterrupted electricity supply have lifted the mood in the country.”

In greater China, consumer spending remained under pressure and an increase in tourism had not materialised. Though sales had declined, cost saving initiatives implemented by management had limited the downside effect on the business.

In Brazil, sales and profits improved slightly, however, the food service market remained constrained by the slow economy. Chile delivered an improved performance, and the Middle East was growing despite the effect of the broader regional conflict.

The group’s operating costs as a percentage of net revenue increased to 18.8%, about 40 basis points (bps) higher than a year ago, mainly due to increased labour cost pressures.

“Despite the challenging macroeconomic environment experienced in the first four months of [the 2025 financial year], we are growing in line with our expectations in economically tough, stagnant and zero-inflation markets,” it said.

“There remains a promising pipeline of future opportunities, both organic and acquisitive, affirming the effectiveness of our long-held strategic approach.”

mackenziej@arena.africa