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Bidcorp buffeted by second Covid wave


Bidcorp buffeted by second Covid wave

Published Date: 2021-02-22 | Source: Stephen Gunnion | Author: Stephen Gunnion

Bidcorp buffeted by second Covid wave

The food services company says a recovery at its operations in Europe and the UK was cut short by the second wave of the pandemic.

Bidcorp will report a decline in first-half profit after a second wave of Covid-19 swept across Europe and the UK, impacting the hospitality, tourism and leisure industries. However, it says some of the other geographies it operates in have continued to perform well.

In a trading statement, the food services company said its results for the six months to end-December were "commendable" against a backdrop of the catastrophic economic and social consequences of the ongoing pandemic on the industries that are its bread and butter. It benefitted from good asset management, strong free cash flow and healthy, but lower, profitability.

Its performance for the current financial year started well, with most geographies seemingly coming out of the worst of the first wave of Covid-19, and a positive financial performance through July and August, particularly in Europe and the UK. However, it said this started deteriorating in September and worsened in the second quarter with Europe and the UK firmly in the grip of the harsh second wave.

It expects headline earnings per share from continuing operations to be between 45% and 48% lower than the 728.3c reported a year earlier, while basic earnings per share are likely to be 35% to 40% lower than the 725.4c previously reported.

Bidcorp's results are scheduled for release tomorrow. Its shares closed 4.1% higher at R288.69 on Friday.

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