Bid Corporation (BID) H2 2024 earnings summary

Executive summary

• Achieved record FY2024 results with revenue up 15.1% to R225.9bn and HEPS up 15.5% to 2,405.5cps, driven by strong performances across most regions despite challenging global economic conditions.

• Organic growth was the main driver, supplemented by four bolt-on acquisitions in FY2024 and further deals post year-end; over 80 businesses acquired in eight years.

• Dividends grew 16% to 1,090cps, maintaining a 2.2x cover and a five-year compound growth rate of 6% USD and 11% ZAR.

• Management praised for navigating tough economic conditions, maintaining growth momentum, and delivering solid results off a high base.

• Strategic focus remains on organic growth, bolt-on acquisitions, and disciplined capital allocation, supported by robust governance and a strong culture.

Financial highlights

• Revenue increased 15.1% to R225.9bn; constant currency growth was 7.5%; trading profit up 15.9% to R12.2bn; trading margin at a record 5.4%.

• Gross margin improved to 24.1%; EBITDA margin stable at 6.0%; HEPS up 15.5% to 2,405.5cps.

• Free cash flow at R2.3bn, down from R3.4bn due to higher capex and working capital absorption.

• Net debt (non-IFRS 16) at R3.1bn; net debt to EBITDA at 0.2x; EBITDA interest cover at 23.2x.

• Final dividend of 565cps; total dividend up 16% year-over-year.

Outlook and guidance

• Budgeting for continued real growth in FY2025 despite tougher trading conditions and muted food inflation.

• Early FY25 sales up 4-5% in constant currency, with almost no inflation, indicating real growth.

• Ongoing investment in infrastructure, technology, and ESG initiatives; further bolt-on acquisitions expected.

• Cash generative profile and strong balance sheet provide headroom for organic and acquisitive growth.

• Management remains cautious given global uncertainties, currency volatility, and sticky core inflation.