Bid Corporation (BID) CMD 2025 & Trading Update summary

Trading performance and financial guidance

• Trading profit and constant currency HEPS grew by approximately 10% YTD to April 2025, with overall sales growth at 6.7% in constant currencies, including 2.5% from acquisitions, and 4.6% organic growth.

• EBITDA margin (pre-IFRS16) improved by 20 bps to 5.8%, and gross margins also improved despite cost inflation outpacing food inflation.

• CapEx is tracking at 2.9% of revenue, with net capital investments reaching R5.6 billion, focused on future capacity and equipment replacement.

• Tax rate is expected to remain between 26–27%, with working capital days slightly higher but expected to tighten.

• Balance sheet remains strong, with recent debt refinancing, €75 million bank loan refinanced, and total headroom at R18.2 billion.

Strategic initiatives and business developments

• Ten bolt-on acquisitions completed YTD for R1.1 billion, including Turner Price (UK) and VDS (Belgium), with a robust pipeline for further bolt-on deals.

• Ongoing focus on refining customer portfolio, margin management, leveraging house brands, import substitution, and light manufacturing.

• Larger acquisitions remain under consideration but will only proceed if strategically and financially appropriate.

• Strategic initiatives in the U.K. include cost savings, head office simplification, and a gradual shift toward free trade customers, supported by technology-led productivity improvements.

• Investments in new capacity and technology, such as in Italy and Portugal, are expected to yield operational leverage and future growth.

Market conditions and operational highlights

• Consumer spending remains subdued due to cost-of-living pressures and sticky core inflation.

• Labour and supply chain costs are rising due to regulatory wage increases and capital cost escalation.

• Market competition has intensified, with some margin sacrifice to grow volumes and market share.

• Customer base remains resilient, with credit risk actively managed across jurisdictions.

• Decentralized model and agile teams enable adaptation to shifting market dynamics.