Business
Bidcorp Reports Strong H1 2025 Performance Driven by South Africa and UK Growth
Bidcorp, the global food services group, has delivered a robust performance in its latest financial results for the half-year ended December 31, 2024. The company reported a 7.1% increase in revenue in constant currency, driven by strong performances in South Africa and the UK, despite a challenging economic and trading environment.
Revenue and Earnings Growth
After adjusting for relevant food-basket inflation and acquisitions, Bidcorp grew by around 5% in real terms. However, currency volatility negatively impacted the rand’s financial performance by 4.0%. Headline earnings per share (HEPS) jumped by 6.0% to 1,221.6 cents, and at a constant currency level, it would have increased by 10.0%. Basic earnings per share (EPS) declined by 2.0% to 1,120.7 cents per share, primarily due to non-cash losses incurred on the exit of the group’s German operations.
Regional Performance Highlights
- UK: The UK delivered an improved performance in its core food service operations, benefiting from an acquisition that supplemented regional independent activities.
- South Africa: The Emerging Markets section saw a strong performance from South African businesses, contributing significantly to the group’s overall growth.
- Greater China: Activity in Greater China remains subdued due to the challenging macro environment.
- Europe: The European business performed well under challenging macro conditions, with growth in revenues and trading profits.
- Australasia: Despite challenging trading conditions, Australia and New Zealand delivered solid trading performances.
Challenges and Opportunities
Bidcorp noted that activity levels in Q1 were impacted by unseasonably cold and wet September weather in the Northern Hemisphere and extreme weather-related flooding in Eastern Europe. These conditions detrimentally affected the group’s UK and European businesses, but improvements were seen going into Q2 and the festive season.
The group also highlighted that food inflation has disappeared, but cost inflation remains sticky, driven by ongoing wage pressures from labor availability, particularly in the warehouse and driver categories. As economic conditions have tightened in many geographies, customers have become more price-sensitive, and competition has increased.
Strategic Investments and Acquisitions
Bidcorp continued its investment activity, primarily into new distribution capacity, to cater for current and future growth. Acquisition activity has increased, with eight bolt-on opportunities concluded in the period. These strategic moves are expected to further strengthen the group’s market position and drive future growth.
Interim Dividend
The group declared an interim cash dividend of 560 cents per share for the half-year ended December 31, 2024, representing an increase of 6.7% compared to the previous year.
Financial Summary
| Financials | H1 2024 | H1 2025 | % Change |
|---|---|---|---|
| Revenue (R’000) | 113,802,770 | 117,947,889 | +3.6% |
| Trading profit (R’000) | 5,862,727 | 6,263,610 | +6.8% |
| Basic EPS (cents) | 1,143.8 | 1,120.7 | -2.0% |
| Headline EPS (cents) | 1,152.4 | 1,221.6 | +6.0% |
| Interim dividend (cents) | 525.0 | 560.0 | +6.7% |
Bidcorp’s H1 2025 financial results underscore the group’s resilience and strategic agility in navigating a complex global economic landscape. With strong performances in South Africa and the UK, coupled with strategic investments and acquisitions, Bidcorp is well-positioned for sustained growth. The increase in the interim dividend reflects the group’s confidence in its financial health and future prospects.
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