Bidvest reports 24.5% FY HEPS growth
Mpumi Madisa, CEO, Bidvest joins CNBC Africa’s Zanele Morrison to breakdown the numbers.
Mon, 04 Sep 2023 16:37:45 GMT
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AI Generated Summary
- The significant growth in Bidvest's FY HEPS is attributed to the company's focus on organic growth, innovation, scale, and strategic expansion.
- Bidvest has capitalized on the opportunities presented by the country's energy crisis, with notable increases in volumes in the energy, mining, grains, and travel industries.
- The company's emphasis on margin management and expense control has resulted in operating leverage, driving revenue growth and positioning Bidvest for future success.
Bidvest, a leading South African conglomerate, has announced an impressive 24.5% growth in headline earnings per share (HEPS) for the fiscal year ending in June. The CEO of Bidvest, Mpumi Madisa, attributes this significant growth to the company's focus on organic growth, innovation, scale, and strategic expansion. Madisa highlighted the key drivers behind the double-digit results, including the impact of renewables amidst the country's energy crisis. Bidvest has witnessed a substantial increase in volumes in the energy sector, particularly in industries such as mining, grains, and travel and tourism. Additionally, strategic acquisitions, such as BIC in Australia, have contributed to the company's strong financial performance. With a focus on margin management and expense control, Bidvest has successfully leveraged cost efficiencies to drive revenue growth. The company's operating leverage has been particularly notable, with certain divisions managing expenses below inflation rates. While branded products and automotive sectors have been standout performers, Bidvest's freight division recorded the highest growth at 23%. Looking ahead, Bidvest remains committed to prudent capital deployment, with significant investments planned for expanding capacity in the freight business. The company also has a robust pipeline of potential acquisitions across various regions, signaling continued growth prospects. Overall, Bidvest's solid financial performance and strategic growth initiatives position the company well for future success.
