International foodservice group Bid Corporation has reported a rise in profit and revenue despite lacklustre trading conditions around the world.
The group reported trading profit growth of 8.6% (6.8% in constant currency) off revenue growth of 8% (6.4% in constant currency) for the four months to end-October.
“This is pleasing considering the ongoing lacklustre trading conditions generally being experienced around the world, where margins remain under competitive pressure, and the cost base continues to face upward pressure, particularly in wage costs,” the group said on Wednesday.
While food inflation across the group’s product basket has started to increase, fortunately this is at “manageable levels”.
Headline earnings per share (HEPS) in the year to October grew 7.2% (5.1% in constant currency) amid higher funding costs and a slightly elevated estimated tax rate.
Currency volatility has benefited the group’s rand-translated results, with year-to-date forex movements providing a 2.1% positive impact to the group’s rand-translated numbers.
Bidcorp said that while August trading was a bit slower than trend, there had been an improvement through October and early November as the group headed into the important festive season.
The group said consumer spending generally remained subdued due to cost-of-living pressures and uncertainty arising from tariff turmoil, which has had little direct effect on Bidcorp’s business.
Labour costs remained elevated, driven by wage increases that generally outstrip core inflation levels, and labour availability in essential driver and warehouse operative categories were tight, due to low unemployment levels in many countries, it said.
Australia’s trading profit was slightly up in the period, off reasonable sales growth of about 5%, which did not fully translate to profit growth primarily because of margin pressure and the strategic decision to retain and grow volumes. Fortunately, this trend started reversing in October and margins are moving upwards again in a price-sensitive environment.
New Zealand operates in an extremely challenging macro-economic environment, with the hospitality market still under pressure.
Sales in Europe increased by about 9% in constant currencies, maintaining their positive trajectory. Good trading performances were achieved by the Netherlands, Belgium, Czech and Slovakia, Poland, Baltics, Portugal and Italy.
In the UK, sales increased by nearly 5% in constant currency, gross margins have improved and, despite increased costs, trading profit growth of more than 8% was achieved.
The group’s emerging markets region delivered trading profit growth of 7% in constant currencies. SA continues to perform well, in particular the Bidfood business, against a backdrop of anaemic economic growth.
In South America, Chile was flat and is receiving focused management attention, while Brazil is much improved and looking for suitable acquisition opportunities. Argentina was dealing with a volatile market, Bidcorp said.
In the Middle East, the UAE’s good performance was negated somewhat by growing pains in Saudi. Turkey was challenging but improving, the group said.
Four small bolt-on acquisitions, collectively costing R1.1bn, were concluded in the UK, Italy, SA and Malaysia.
“Bolt-on acquisition opportunities continue to be pursued; however, we remain disciplined and patient in converting the right opportunities at the right price. Several potential acquisitions have been rejected recently as these businesses appear to have passed peak profitability and are showing declining performance in these challenging times,” the group said.
“Our appetite for the larger opportunities remains, although no such opportunities have presented themselves. Our capital structure provides significant financial firepower to pursue the right opportunities,” Bidcorp said.
“Our outlook remains positive for the balance of [the 2026 financial year], despite the ever-present macro uncertainties, and we are confident that we will continue to deliver real growth,” the group concluded.
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