Bidcorp warns of profit slump and Covid-19 writedowns
Food services group has battled with pandemic’s effects across all countries in which it operates
Bidcorp, the global food services company spun off from Bidvest in 2016, has warned of hefty write-downs in its year to end-June as it battles with the fallout from the Covid-19 pandemic.
The group said sales declined 28% in the last quarter of its financial year, while it experienced significant abnormal costs. This includes debt provisions of R785m, inventory obsolescence of R248m, restructuring costs of R470m and asset write-downs of R940m.
Headline earnings per share (Heps) from continuing operations is expected to fall 45%-50% from 1,443.6c before, the group’s trading update reads.
Heps is a widely used profit measure that excludes one-off items to give a better indication of the underlying performance of a business. Continuing operations excludes the effects of businesses that have been sold.
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