Rebound in demand spurring hope, says Bidcorp

The COVID-19 pandemic has presented unprecedented challenges to businesses worldwide, and Bidcorp is no exception. The food services company reported a significant decline in profit, with sales plummeting by 37% in the early weeks of the crisis. However, Bidcorp Chief Financial Officer, David Cleasby, remains optimistic as the company has experienced a steady recovery in demand in recent months. In an interview with CNBC Africa, Cleasby discussed the impact of the pandemic on Bidcorp's operations. He noted that the hospitality industry, to which Bidcorp has significant exposure, was severely affected by lockdowns and restrictions on restaurant operations. As a result, the company saw a sharp decline in sales as consumers shifted their eating habits due to the closure of restaurants. To adapt to the changing landscape, Bidcorp explored new opportunities such as selling directly to consumers (B2C) and online sales. While these initiatives helped the company navigate the crisis, Cleasby emphasized that Bidcorp's core focus remains on the food service sector, serving chefs and businesses in the B2B space. Despite the challenges, Bidcorp has seen a positive trend in demand, with sales rebounding to nearly 90% of the prior year's levels by August. Cleasby attributed this recovery to evolving consumer behavior, as people show a preference for dining out once restrictions are lifted. While some markets are still lagging behind, Bidcorp anticipates a gradual return to normalcy across all regions. Looking ahead, Cleasby discussed the potential for acquisitions and expansion opportunities. While new country acquisitions are currently challenging due to travel restrictions, Bidcorp remains open to in-country investments where opportunities arise. The company is cautious about capital deployment, emphasizing the need to stabilize and prioritize existing operations before pursuing new ventures. In conclusion, Bidcorp's resilience in the face of the COVID-19 crisis underscores the company's ability to adapt and innovate during challenging times. With a focus on serving the food service industry and a positive outlook on demand recovery, Bidcorp remains hopeful for the future.