Bid Corporation (BID) investor relations material

Executive summary

• Achieved solid growth in earnings and headline earnings per share in both rand and constant currency despite a challenging global environment.

• Revenue increased by 4.3% to R235.6bn, with constant currency growth of 6.8% year-over-year, reflecting both organic and acquisitive expansion.

• Strategy of organic growth supported by bolt-on acquisitions continues to deliver results.

• Management highlights strong performance across most geographies, with particular strength in Europe, the UK, and South Africa.

• The business model remains robust and scalable, with operations in 31 countries and a focus on foodservice, technology, and sustainability.

Financial highlights

• Revenue increased by 6.8% in constant currency, with organic growth in the mid-4% range after stripping out acquisitions.

• Headline earnings per share rose 6.5% to 2,562.7 cents, and the final dividend was increased by 6.2% to 600.0 cents per share.

• Trading margin improved from 5.3% to 5.5%; EBITDA margin at 6%.

• Gross profit margin improved to 24.5% (from 24.1%), offsetting a higher cost-of-doing-business ratio of 19.0%.

• Net debt up 6.2% but remains low relative to covenants (0.4x vs 2.5x limit).

Outlook and guidance

• Confident in continued growth, with revenue up 6.2% in the first eight weeks of the new financial year.

• Activity levels in July and August are encouraging despite challenging weather in the northern hemisphere.

• Moderate food inflation expected to return, seen as a positive for trading.

• No major debt maturities in the near term; CapEx expected to normalize to 1.5–2% of revenue.

• Four bolt-on acquisitions have been completed post-year-end, with more under consideration.