Bidcorp performance on trend


Bidcorp performance on trend

Published Date: 2019-05-22 | Source: Stephen Gunnion | Author: Stephen Gunnion

Bidcorp performance on trend

The food services group has maintained its earnings outlook for the year as its businesses in SA and China show signs of an improvement.

Bidcorp says the second half of its financial year got off to a strong start, with positive trading across all operations in the four months to end-April.

In a trading update, the food-services group said its large UK, European and Australasian businesses continued to trade well, supported by economic growth in those regions. And while SA and its Angliss business in China remained challenging, it said their monthly performance was starting to improve against last year. The weaker rand also boosted earnings from SA.

Although operating expenses are increasing due to rising wage costs and higher fuel and energy expenses, it said real sales growth and better margins had compensated.

It made fewer bolt-on acquisitions over the period due to the unrealistic prices placed on businesses in the sector. Instead, it said it was focused on extracting the benefits from recent deals in Australia, Iberia and Germany.

The group said it was in advanced talks to sell its Bestfood Logistics business in the UK to a reputable international buyer and expects closure in the first quarter of its 2020 financial year.

It's maintained its full-year earnings expectations.

Its shares rose 2.6% to R290.42 yesterday.

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