Bid Corporation (BID) H2 2024 earnings summary

Executive summary

• Strong F2024 operational performance, with robust earnings quality, cash generation and a strong balance sheet across 35 countries.

• Organic growth was the main driver, supplemented by bolt-on acquisitions; over 80 businesses acquired in eight years.

• Dividends grew in line with earnings, with 2.2x cover and five-year compound growth of 6% in USD and 11% in ZAR.

• Cash generated from operations typically exceeds 100% of trading profit; sustainability is embedded in operations.

Financial highlights

• Revenue rose 15.1% to R225.9 billion; constant-currency growth was 7.5%. Trading profit increased 15.9% to R12.2 billion, with a record 5.4% trading margin.

• EBITDA reached R13.5 billion; EBITDA margin held at 6.0%. Gross margin increased to 24.1% from 23.8%.

• Headline earnings rose 15.8% to R8.1 billion; HEPS increased 15.5% to 2,405.5cps.

• Free cash flow was R2.3 billion, down from R3.4 billion in F2023 due to higher capex and working capital absorption.

• Final dividend was 565cps; total F2024 dividend was 1,090cps, up 16%.

Outlook and guidance

• Management budgeted for continued real growth in F2025, with muted food inflation but sticky core inflation.

• Group sales into July and August were ahead of F2024; UK and Europe were affected by a poor summer.

• R24.2 billion of balance sheet headroom supports organic and acquisitive growth; gearing is expected to increase.

• Normal working-capital absorption is expected in H1F2025, with further capex planned across regions; forecasting risk remains high amid global uncertainty and currency volatility.