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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