Bidvest swings to profitability with strong performance

Bidvest Group, a key player in South Africa's economy, has reported a significant increase in earnings in their latest financial results. The company's CEO, Mpumi Madisa, highlighted that four of the six divisions achieved record results or the highest trading profit in history. This feat is partially attributed to the acquisition of PHS in May last year, which has boosted the overall performance of the company. The company has seen notable market share gains, particularly in the trading business, driven by increased industrial activity in the private sector. The mining sector's boom has also played a crucial role, with Bidvest benefiting from additional work in upgrading and building mines, as well as involvement in alternative energy projects. The company's RPG terminal exceeded profit expectations, further enhancing their financial performance. Despite lower volumes in the automotive sector, Bidvest saw a shift towards second-hand vehicle purchases, contributing to solid results in their services division. The company reported a 100% increase in headline earnings per share from continuing operations to R11.83. Bidvest's success is evident in their various divisions, with the services division leading the way with a trading profit of around 3.3 billion. Other significant contributors include the Mirandaan Ben branded products, the freight division, Automotive, and financial services. However, Bidvest does have some struggling sectors, particularly those directly impacted by international travel restrictions and supply chain disruptions. Looking ahead, Madisa expresses optimism about the potential for growth in these areas as global vaccine programs roll out and economic activities normalize. Bidvest has made efforts to manage costs effectively and streamline its business operations, focusing on right-sizing and divesting from non-core assets to ensure long-term sustainability. With a workforce of over 120,000 employees, Bidvest plays a vital role in South Africa's economy and is committed to providing a safe working environment during the ongoing COVID-19 pandemic. The company is actively promoting vaccination among its employees, with mobile clinics set up to facilitate access to vaccines. Madisa emphasizes the importance of inclusivity and collaboration among businesses, government, and society to address systemic inequalities and drive economic growth. While acknowledging the progress made by the government, Madisa calls for greater cooperation and collective action to tackle poverty, create jobs, and support small businesses for a more resilient future.