Bidcorp, an international food services group, stated that it is well positioned to provide alternatives to consumers who are reluctant to absorb price increases, allowing the company to remain competitive.
Key points
- Despite high food inflation in South Africa and globally, Bidcorp reported a significant surge in annual profit and increased its payout. Most of the company’s businesses were able to pass on cost inflation increases to consumers.
- CEO Bernard Berson highlighted the advantage of Bidcorp’s house brand and manufacturing strategies, which enable the company to offer value propositions that keep them highly competitive in the market.
- The group’s annual profit increased by 41.5% year-on-year to R6.95 billion, and headline earnings per share (HEPS) grew by 35.4% to 2,082.9c.
- Bidcorp’s Australasia business experienced growth in revenue and margins, while its UK operations saw an increase in new contracts.
- Europe is now Bidcorp’s largest region by trading profit, accounting for approximately one-third of its trading profit, followed closely by Australasia.
- Despite global economic uncertainty and higher interest rates, Bidcorp remains optimistic about the long-term growth prospects of the food service industry. The company believes there is still market share to be gained and expresses confidence in its management teams and business model.
Bidcorp’s ability to navigate food inflation and pass on costs to consumers while maintaining profitability underscores its resilience in the market. With a focus on offering alternatives and leveraging their competitive strategies, Bidcorp aims to sustain its growth trajectory in the evolving business landscape.