Bidcorp raises final dividend 16% as revenue hits R225,9bn
The food services group lifted headline earnings per share 15,5% and grew trading profit to R12,2bn in a year its chief executive called an excellent performance against a turbulent global backdrop.
Bidcorp will pay a total dividend of more than R10 a share for its 2024 financial year after declaring a final cash dividend of 565 cents per share for the year ended 30 June. The final payout is 16% higher than the prior year, and follows an interim dividend of R5,25 a share paid in February.
The food services group reported revenue of R225,9 billion for the year, up 15,1%, and trading profit of R12,2 billion, up almost 16%. Headline earnings per share rose 15,5% to 2 405,5 cents. The results were published in a short-form annual results posting on the JSE’s Sens platform and carried by Moneyweb.
The group’s shares firmed more than 4% by the JSE close on Wednesday, the day the results were released.
Currency swings added 6,4% to headline earnings
Bidcorp operates internationally, and currency volatility positively affected the rand-translated headline earnings per share by 6,4%, the group said in a separate results media statement. In constant currency, revenue growth was 7,5%.
Chief executive Bernard Berson said most of the group’s businesses improved on the record levels set in the 2023 financial year.
“Our top line has grown by 15,1% [7,5% in constant currency] and after adjusting for our estimated weighted food-basket inflation, we have achieved real organic volume growth of just under 6%,” Berson said.
In its Sens posting, the group described the year as an excellent performance delivered against a turbulent and challenging world, which it characterised as beset with anaemic, stagnant and sometimes negative economic growth.
Europe at a record, South Africa strong
The group’s European operations delivered another record performance, with almost every business growing well ahead of the 2023 financial year. In Australasia, revenue growth moderated in tough economic conditions, but Australia and New Zealand both delivered strong trading results. The United Kingdom ended flat on the prior year after a strong second half.
Emerging Markets produced mixed performances. Bidcorp reported a strong result from its South African businesses, offset by weaker trading in Greater China.
The group said good volume growth from contract wins and acquisitions benefited profitability.
Berson credited the group’s global teams with continuing to deliver on its strategy.
“Most of our businesses have improved their performance against previous record achievements of FY 2023, and our global teams are to be highly commended on continuing to successfully deliver on our strategy,” he said.
Bidcorp’s results cover the year ended 30 June 2024. The final dividend of 565 cents per share, together with the interim of R5,25, takes the cumulative payout for the year to over R10 a share.
