The international food, service and technology group, Bidcorp, has delivered a very pleasing performance for the year to June 2026 in a somewhat challenging and uncertain global trading environment.
Constant currency headline earnings per share (HEPS) increased by 6,8% to 2 737,9 cents per share (F2025: 2 562,7 cents per share). As an international business with 95% of activities outside of South Africa, constant currency reporting is Bidcorp’s truer measure of actual performance.
In rand, HEPS grew by 5,4% to 2 701,4 cents per share, reflecting the negative impact of the stronger rand against many of Bidcorp’s operating currencies.
Constant currency trading profit increased by 8,2% to R14,0 billion, with trading margins increased by 20 bps at 5,7%, reflecting a continued focus on pricing disciplines, cost control and operational efficiency.
Bernard Berson, Bidcorp CEO, commented, “Our global trading environment has been characterised by softer consumer spending, higher yet stable core inflation and generally subdued economic activity, and since March, significant geopolitical disruption. Encouragingly, we have again demonstrated the resilience of our diversified portfolio, decentralised operating model, and disciplined execution”.
The European businesses delivered a strong performance with double digit growth in revenues and trading profits in home currencies despite difficult macro conditions. The UK also delivered a solid performance, particularly in its core foodservice operations, with the fresh business benefiting from a small acquisition to bolster its independent activities. Australasia experienced modest growth this year, impacted by broadly weaker consumer demand. Emerging Markets overall was flat; however, this masked some excellent business performances.
Overall revenue grew by 5,0% in constant currency, and after adjusting for the estimated food-basket inflation and acquisitions, Bidcorp’s top line has grown by over 3% in real organic terms.
Activity levels in Q1 were impacted by unseasonally cold and wet weather in the Northern Hemisphere summer, coupled with some weather-related flooding in Eastern Europe, however, there was an improvement into Q2 and the 2025 festive season. Q3 was flattish, again impacted by very cold weather in Europe and the timing of Easter holidays but activity rebounded well into Q4 despite the Middle East conflict. Food inflation added no real benefit through the year; however, cost inflation remains consistently sticky, driven by ongoing wage pressures with higher supply chain and distribution costs.
Investment activity, into new and replacement distribution capacity, has continued to cater for current and future growth. Five bolt-on opportunities were concluded in the year, adding to Bidcorp’s geographic reach or product range in existing geographies.
Berson added, “Ever conscious of the need to balance reinvestment in the businesses and improve returns on invested capital, we took advantage of the share price weakness and the considerable free cash flow generated, to buy back shares worth R1,1 billion – just under 1% of shares in issue”.
The board has declared a final cash dividend of 625,0 cents per share, increasing the total dividend to 1 240,0 cents per share for the year ended June 30, 2026 (F2025: 1 160,0 cents per share), an increase of 6,9% and approximately 2,1 times HEPS cover, slightly ahead of group policy. In total in F2026, the group returned R5,2 billion to shareholders made up of dividends and share buybacks (F2025: R3,8 billion).
Financial overview
Net revenue of R242,2 billion (F2025: R235,6 billion) rose by 2,8% (constant currency increase of 5,0%), reflecting mostly real organic growth with low food inflation.
Gross profit percentage at 25,8% (F2025: 24,5%) was encouraging, particularly as several businesses aggressively sacrificed some margin to maintain volumes and grow their market shares.
The cost-of-doing-business (CODB) increased to 19,1% (F2025: 19,0%), an excellent result considering higher activity levels and the high-service model. Overall costs were driven by higher cost inflation, particularly labour and volatile fuel prices. Core inflation continues to track materially higher than food inflation. The gains in gross margins have more than offset the small increase in CODB.
Strategic focus
Bidcorp’s strategic focus remains concentrated on the wholesaling of food and allied products to the eating-out-of-home market, supported by the development of Own Brand and imported product ranges, selective movement into niche value-add manufacturing, and a disciplined approach to customer retention and service.
Growth is underpinned by well-located, scalable distribution infrastructure, supported by ongoing investment in technology and systems to enhance efficiency, service levels, and resilience. Bolt-on acquisitions remain an important component of the group’s strategy, enabling expansion of geographic reach or product range to customer offerings within existing markets, as well as selective entry into new territories where appropriate.
Each business within the group operates at a different stage of maturity along its foodservice continuum. Developing businesses remain focused on building scale and market position, while more mature operations continue to enhance their value-add propositions. The decentralised operating model remains a key differentiator, enabling management teams to respond quickly to local market conditions, while benefiting from the group’s scale, experience, and shared intellectual property.
Prospects
Activity levels in the group through July and into August are a continuation of the positive momentum experienced in Q4 of F2026. The summer weather in Europe, which plays an important part of driving consumer spending and activity levels, has been good. UK economic activity in July showed modest growth with consumer spending bolstered by the World Cup and warm weather.
Bidcorp’s business remains firmly on its path of margin enhancement through efficiency gains and new customers. Australia is expecting positive improvements into F2027 and New Zealand has had a solid start to the new financial year. The Emerging Markets business is budgeting for growth, despite the ongoing geopolitical volatility affecting several markets.
Bidcorp continue to invest into strategic distribution facilities to provide for future capacity as well as value-add manufacturing opportunities, however the rate of spend is expected to fall within the normalised range of 1,5% – 2,0% of revenue. Investments in renewable energy, refrigeration, energy efficiency, and logistics optimisation remain a strategic imperative to reducing our environmental footprint.
The pipeline of in-country acquisitions remains active, however, Bidcorp remain focused on converting the ones most likely to fit its strategic focus. Four bolt-on acquisitions have already been concluded in the new financial year, the most significant of which is the Pacific Islands business which has a Fijian distribution arm as well as New Zealand-based export business. Several more opportunities are under consideration. The group remains alert to opportunities in new geographies; however, these remain scarce, and participation therein is opportunistic.
Notwithstanding the current geopolitical volatility and uncertainty, Bidcorp is confident that the growth fundamentals of the foodservice industry remain positive.
Berson concluded, “We continue to deliver on our foodservice strategy, enabled by our excellent management teams and people, and through our fit-for-purpose business model. We will continue to focus on those factors that we can control and adapt and maximise the opportunities, organic and acquisitive, which inevitably arise in each market. We look forward to F2027 with confidence and are budgeting to once again deliver real constant currency growth in the year ahead”.