JSE-listed services and trading group Bidvest has reported a 2.9% year-on-year increase in revenue to R130.3-billion for the financial year ended June, while trading profit increased by 8.4% year-on-year to R13.1-billion, with every division delivering trading profit growth.

Headline earnings per share (HEPS) grew by 6% to R18.64. Group basic EPS increased by 1.3%, to R18.08 a share.

Group HEPS grew by 4.4% to R19.52 a share. The difference relates primarily to the impairment of the discontinued operations’ net asset value growth over the year.

Bidvest declared a final dividend of R4.83 – a 6.6% year-on-year increase.

“We improved organic growth momentum, materially increased cash generation, maintained capital discipline and deleveraged, while the programme to rebuild returns remains a priority,” says Bidvest Group CEO Mpumi Madisa.

Cash generated from operations was up by 16.9%, or R2.5-billion, to R17.2-billion and free cash generated increased by 26.9%, or R2.6-billion, to R12.5-billion.

The trading profit margin expanded by 50 basis points to 10%.

The company also made progress on strategic initiatives, including signing a 25-year terminal operator licence for the renewed Island View port lease, with two more under negotiation. Total capital expenditure (capex) of R2.5-billion was approved to expand these country-critical bulk terminals, the company says.

Further, incremental value and contributions were realised in the hygiene and testing, inspection and compliance sectors through the completed integration of Citron UK into PHS, the full-year contribution of Citron North America and nine-month contribution from Aquatico.

The acquisition of Aquatico, effective October 14, 2025, expanded Bidvest’s testing, inspection and compliance services platform into environmental monitoring and water testing, which increased the group’s exposure to an attractive structural growth market.

Cleanbio, a small bolt-on hygiene business in Singapore, was also acquired in the first half of the financial year, Bidvest says.

Meanwhile, improved profitability and tighter asset management resulted in an increase in return on funds employed (ROFE) and return on invested capital (ROIC) remained ahead of the group’s weighted cost of capital, Bidvest reports.

Bidvest delivered organic profit growth during the year, compared with a contraction in the prior year.

Expenses increased by 3.8%, and by 2.9% on an organic basis. Operating expense growth in all divisions, except Freight and Services International, was below revenue growth.

Freight’s cost increase was mainly driven by the greater bulk volumes handled, while the full year expenses of acquired businesses impacted costs in Services International, Bidvest says.

Freight delivered 10.3% growth in trading profit as healthy agricultural and mineral export volumes added further impetus to positive operating leverage.

Commercial Products grew trading profit by 27.2%, benefiting from a recovery in renewable sales, robust demand for basic plumbing and electrical products, strong smart meter sales as well as product portfolio expansion.

In Services South Africa, excellent results in hospitality, and testing, inspection and compliance services, as well as demand for bottled water, mitigated security contract margin pressure, which resulted in 8.3% profit growth.

In Automotive, relentless vehicle gross margin pressure was buffered by a solid performance across the balance of the automotive portfolio, particularly in Insurance, and the receipt of an old insurance claim, resulted in a trading profit increase of 7.1%.

Adcock posted trading profit growth of 9.4% and Branded Products reported trading profit growth of 5.4% through positive product mix delivering improved gross margins, augmented by outstanding operational and cost efficiencies.

Strong results from Services International’s global hygiene operations mitigated contract margin and rescoping pressures in facilities management, which yielded 4.3% growth in trading profit. In constant currencies, the growth was in line with expectation, the company says.

Capital allocation remained disciplined, with no material merger and acquisition activity in the current year, as continued focus on extracting value from the investment base remains the priority.

OUTLOOK
Bidvest enters its 2027 financial year with positive operating momentum and a strengthened platform for sustainable growth. Its near-term priorities are to accelerate organic growth, enhance cash generation, reduce leverage and rebuild returns.

Competitive pricing and related margin pressure, energy price instability and muted industrial demand in South Africa had an impact on its results. The growth outlook will, however, be supported by structural demand in hygiene, testing, inspection and compliance services, hospitality and inbound tourism.

Further impetus will come from the inclusion of Aquatico for a full year, broader automotive brand representation and used-vehicle reach as well as the recent product-specific uptick in industrial activity, Bidvest says.

Additional opportunities are emerging from advancement in infrastructure, logistics and port reform in South Africa and AI deployment in business process optimisation and innovative solution offerings continue to enhance its competitive edge.

Currency volatility and sluggish economic activity in the UK, Ireland and Australia is expected to persist; however, improved net contract wins momentum, focused customer retention, greater washroom product and services penetration, sourcing efficiencies, technology and AI deployment supports confidence in the outlook for the international operations.

No material mergers and acquisitions are planned in the near term. Free cash flow, disposal proceeds and capital recycling will continue to be directed to reducing debt.

Further, growth capital will be allocated to expanding country-critical port terminal capacity, mobilising new contracts and building scale in North America, with a disciplined focus on sustainable long-term returns.

Bidvest's board has approved R2.5-billion in growth capex in Freight for the construction of a second LPG terminal in the Port of Richards Bay and expanding bulk grain and liquid capacity in the Port of Durban. Construction will start once close-out conditions have been finalised, the company says.

Bidvest’s businesses are using innovation and technology to strengthen resilience, improve customer outcomes, optimise capital allocation, expand operational capacity, enhance sustainability and unlock future commercial opportunities.

The company also continues to build social value through broader skills development, wellness, health and sustainability initiatives, many delivered in conjunction with suppliers and customers.

“We remain confident in Bidvest’s ability to build on the 2026 financial year's performance. We have restored earnings momentum, demonstrated the cash-generative quality of our portfolio and taken decisive action to sharpen capital allocation.

“Our focus remains firmly on execution and on delivering sustainable long-term value for all stakeholders,” says Madisa.