Bidcorp’s SA businesses performing above expectations in tough economy
In the 2019 financial year, 95% of the company’s R129.3bn revenue was derived from outside SA
International food services group Bidcorp’s South African businesses has recovered from the Listeriosis outbreak and is performing above expectations despite SA’s economic woes, it said on Monday.
Bidcorp, which was formed 30 years ago after former parent company Bidvest acquired Chipkins, a catering services company, and Sea World, said in its trading statement for the four months to October 31 that all its businesses have shown growth, “albeit some at an anticipated slower rate”.
The problem businesses, namely Guzman in Spain, Pier7 in Germany and Bidfresh UK are making slow but steady progress.
“Trading for the four months to October in financial year 2020 on a like-for-like basis, continues to be positive, measured in home currencies,” it said.
The company said the overall performance of its South African businesses was pleasing.
“SA overall is showing solid results despite a persistently weak economic environment. Bidfood has continued its growth trajectory and the Crown Food business has recovered post the Listeriosis crisis and is achieving growth in many areas of the business,” it said.
Bidcorp invests in SA, Australia, New Zealand, the UK, Europe, Singapore, China, the United Arab Emirates and Saudi Arabia.
The company said political and social unrest in several geographies were having an impact on some of its businesses.
Protests in Hong Kong have significantly decreased hotel occupancies, tourist arrivals and eating out-of-home activities.
Its operations in Chile were performing well until October, when civil unrest hit its growth trajectory.
In Barcelona, Spain, clashes between the Catalan separatist movement and anti-independence groups have also slowed growth.
In the UK, the Brexit debacle drags on and economic growth is stuttering; although the December general election has signalled some potential positive news.
Despite all the negatives, our management teams remain positive and motivated by opportunities.
The group said “management’s expectations for financial year 2020 remain cautious but largely unchanged; however, political uncertainty, slowing global growth and recent socioeconomic unrest heightens risk”.