Bidcorp reports record half-year profits

Food services company, Bidcorp, has reported a remarkable 75 per cent increase in headline earnings per share for the six months ended December 31, showcasing its resilience in the face of challenging operating environments across the globe. Joining CNBC Africa for a closer look at their impressive half-year profits and future growth strategies, David Cleasby, CFO at Bidcorp, discussed the company's performance and outlook. In a year marked by the ongoing impacts of the global pandemic, Bidcorp navigated through various hurdles, including staff shortages, skills deficits, inflationary pressures, and operational challenges. Despite these obstacles, the management teams across continents delivered record financial results, highlighting their ability to adapt and succeed in turbulent times. One of the key factors driving Bidcorp's success amidst adversity is the strategic planning and operational efficiency demonstrated by the teams. Cleasby acknowledged the hard work and dedication of Bidcorp's employees in managing the complex and dynamic business environment, emphasizing the importance of sticking to the plan amid uncertainties. Looking ahead, Bidcorp remains cautiously optimistic about future growth opportunities, especially as markets gradually recover from the impact of the pandemic. While certain segments like business travel and hospitality are yet to fully rebound to pre-COVID levels, Cleasby expressed confidence in the company's ability to capture emerging opportunities as the global economy stabilizes. Discussing the inflationary landscape, Cleasby noted that food price increases, coupled with rising costs of labor, energy, and fuel, have contributed to higher inflation rates in many regions where Bidcorp operates. The CFO highlighted the significance of monitoring inflation trends across geographies to mitigate potential risks and optimize business operations. Amidst geopolitical tensions in regions such as Russia and Ukraine, concerns about food price hikes have surfaced, given the impact on grain production and exports. Cleasby acknowledged the potential ripple effects of such developments on global inflation, underscoring the need for vigilance and strategic planning in response to external disruptions. When it comes to future acquisitions, Bidcorp's focus remains on smaller, strategic bolt-on purchases that complement its existing footprint and product portfolio. While transformational deals are not currently on the agenda, Cleasby emphasized the importance of organic growth and opportunistic expansion in select markets. In terms of geographical expansion, Bidcorp is eyeing potential opportunities in Europe to enhance its presence and product offerings. While North America remains a market of interest, the company is cautious about the competitive landscape and pricing challenges in the region, opting to prioritize existing markets for growth initiatives. With a strong performance in the first half of the fiscal year and a robust strategic framework in place, Bidcorp is well-positioned to navigate uncertainties, capitalize on emerging trends, and drive sustainable growth in the competitive food services industry. Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of CNBC Africa.