Bidvest revenue grows 18.9% as investment activity rises - CNBC Africa

Bidvest revenue grows 18.9% as investment activity rises


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Bidvest Bank. PHOTO: Canal Walk Mall

“The group delivered good trading results for the half year ended 31 December 2013 in a period characterised by significant investment activity,” said [DATA BVT:BIDVEST GROUP LTD.], an international service, trading and distribution business, in a statement.

Headline earnings per share increased by 16.2 percent to 84,233 cents per share while trading profit grew 19.2 percent to 4.2 billion rand.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) were also up 19.1 percent to 5.4 billion rand.

The group’s solid earnings are attributed to the number of acquisitions they embarked on, which equated to 1.8 billion rand of their growth.

During the period, the company acquired 71.7 percent of Home of Living Brands for 538 million rand as well as purchased the minority shareholding of outsourcing firm Mvelaserve.

In January 2014, the group acquired an additional 44.5 million shares in Adcock Ingram for a consideration of 3.1 billion rand, bringing its total interest in the healthcare firm to 34.5 percent.

Major growth also occurred in Bidvest Asia Pacific of 2.2 billion rand and Bidvest Europe at 6 billion rand despite economic conditions in their global businesses remaining tough.

“In Europe, renewed optimism of a sustained economic recovery is evident. The growth in the Asia Pacific region remains positive for the continued expansion of our wholesale model. Management is focused on expanding exposure to the independent foodservice customers and growing the national footprint of the fresh offering,” added the company.

Bidvest’s new strategy will focus on consumer products, where they will be expanding their exposure to the distribution of fast moving consumer goods without direct retail exposure.

Progress for the group however has been slower than expected in developing an Africa products related strategy due to the lack of infrastructure in the affected countries.