Bidcorp (BID) is a diversified international food company which operates in 34 countries around the world. It was spun out of Bidvest in June 2017 to release shareholder value. We see this as a solid blue chip, rand hedge share which should perform well. About 95% of its income is generated outside South Africa.
Bidcorp focuses on the wholesaling and delivery of what it describes as "fit-for-purpose" product ranges which it says will continue to grow strongly. In its results for the six months to 31st December 2023 the company reported revenue up 24% and headline earnings per share (HEPS) up 18.6%. The company said, "Europe produced an excellent performance under the circumstances both in terms of revenue growth and margins, with almost every business showing solid growth. Australasia’s revenue growth moderated however both Australia and New Zealand delivered strong trading performances. The UK delivered good volume growth from the prior contract wins and acquisitions although profitability was impacted by lower margins and higher costs. Emerging Markets benefited from a strong performance from our South African businesses, however, the negative macro in Greater China impacted the half-year outcome."
In an update on the 10 months to 30th April 2024 the company reported sales up 8.8% with weighted average food inflation of 2.6%. The company said, "For YTD to April 2024, the group made a pleasing EBITDA before IFRS 16 margin of 5.6% of net revenue, similar to an exceptionally strong comparative F2023." Obviously, this company is highly diversified and has made a speciality of acquiring "bolt-on" companies to grow.
Technically, the share was in a steady upward trend until June 2023. Now after a period of sideways movement it has entered a new upward trend. It is on a P:E of 18.66 - which is an indication of its blue chip, rand-hedge status. We expect it to continue to perform well, benefiting directly from the general recovery of the world economy.
Bidcorp focuses on the wholesaling and delivery of what it describes as "fit-for-purpose" product ranges which it says will continue to grow strongly. In its results for the six months to 31st December 2023 the company reported revenue up 24% and headline earnings per share (HEPS) up 18.6%. The company said, "Europe produced an excellent performance under the circumstances both in terms of revenue growth and margins, with almost every business showing solid growth. Australasia’s revenue growth moderated however both Australia and New Zealand delivered strong trading performances. The UK delivered good volume growth from the prior contract wins and acquisitions although profitability was impacted by lower margins and higher costs. Emerging Markets benefited from a strong performance from our South African businesses, however, the negative macro in Greater China impacted the half-year outcome."
In an update on the 10 months to 30th April 2024 the company reported sales up 8.8% with weighted average food inflation of 2.6%. The company said, "For YTD to April 2024, the group made a pleasing EBITDA before IFRS 16 margin of 5.6% of net revenue, similar to an exceptionally strong comparative F2023." Obviously, this company is highly diversified and has made a speciality of acquiring "bolt-on" companies to grow.
Technically, the share was in a steady upward trend until June 2023. Now after a period of sideways movement it has entered a new upward trend. It is on a P:E of 18.66 - which is an indication of its blue chip, rand-hedge status. We expect it to continue to perform well, benefiting directly from the general recovery of the world economy.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.