Bidcorp reports record results despite currency volatility

Bid Corporation has reported record results for the year to date, despite currency volatility, which has negatively affected its rand-translated results.

“We have very pleasingly delivered record results to April 2025, and we look to the future with quiet confidence as we aspire to achieve continued real growth,” said CEO Bernard Berson.

The group, which has a June year-end, said in a market update on Tuesday that year-to-date constant currency results to end-April reflected the positive momentum reported for the first half, with trading profit growth of about 10%, achieved in an almost zero food inflationary environment across its basket.

Constant currency headline earnings per share (HEPS) for the 10 months to end-April have shown growth of about 10%, surpassing the record comparative trading period.

Currency volatility has had a 3.8% adverse effect on group rand numbers. The group has more than 90% of its operations located outside SA.

Revenue set record levels to end-April 2025, outperforming last year’s 6.7% rise in constant currencies. Acquisitions contributed 2.1% to net revenue, reflecting real organic growth of 4.6%.

For the period to end-April 2025, the group’s ebitda margin of 5.8% is about 20 basis points better than a year ago.

The group said the third quarter was the quietest for the UK and European businesses due to the northern winter. March trading was particularly slow, but April trading recovered, benefiting from the later Easter holiday period and warmer weather.

Australian demand remains lacklustre, and the weak economic conditions persist in New Zealand. In emerging markets, performance has held up well overall, except for Greater China, where conditions remain challenging. Performance in SA had been good and South America was increasingly positive, it said.

Bidcorp said market competition had intensified in tougher economic conditions.

“Our focus remains on being competitive and growing market share, in some cases sacrificing margin to increase volumes. Our customer base has been resilient in tighter economic conditions, and we are actively managing and monitoring increased credit risk in all jurisdictions,” said Berson.

“We continue to grow in our preferred sectors of the market. Our teams remain flexible, nimble and highly adaptive in maintaining high service levels and their relevance to our target market,” he said.

“We are very pleased with the growth the businesses have achieved to date in F2025, which are in line with our optimistic expectations, despite the economically tough and stagnant markets and near zero food inflation,” he said.

“The outlook remains positive for the balance of F2025 and into F2026, despite the ever-present uncertainties.

“Our pipeline of bolt-on acquisition opportunities to achieve geographic reach and new product opportunities is full, however, we continue to be disciplined in converting the right opportunities, at the right price. Our management is focused on integrating those acquisitions that have been completed to realise their growth potential and relevant synergistic benefits,” he said.

“Our appetite for the larger opportunities remains, even though these have been sparse in recent years. Our capital structure provides significant financial firepower for the right opportunities.”

MackenzieJ@arena.africa