Bid Corporation (BID) H2 2026 earnings summary

Executive summary

• Achieved another year of solid growth and resilient results despite volatile macroeconomic and geopolitical conditions, leveraging a decentralized structure and diversified global portfolio.

• Revenue grew 2.8% to R242.2bn (5.0% in constant currency), with market share gains and minimal GDP and food inflation in core markets.

• Trading profit rose 6.5% to R13.8bn (8.2% in constant currency), with trading margin up 20bps to 5.7%, and underlying operating profit estimated at 10% higher year-over-year.

• Strong cash generation and a robust balance sheet enabled increased dividends and share buybacks.

• Technology and AI initiatives enhanced operational efficiency, pricing, and customer engagement.

Financial highlights

• Revenue up 5% in constant currency, outperforming weighted average GDP growth of 1.3%-1.4%.

• Trading profit up 8.2% in constant currency; HEPS up 6.8%; EPS up 9.4% due to prior period capital items.

• Gross margin improved by 30 basis points to 24.8%, reflecting strategic focus on house brands, vertical integration, and improved customer mix.

• Free cash flow reached R7.0bn, with cash conversion at 135% of trading profit.

• Net debt to EBITDA at 0.24x; net debt down to R3.8bn, with strong liquidity and headroom for growth.

Outlook and guidance

• Expect continued revenue growth of 5%-6% in a low-inflation, low-growth environment, with further gross margin improvement.

• Operating profit anticipated to grow above 6%, with additional upside from efficiency gains and technology.

• Capex to remain in the 1.5%-2.0% of revenue range, focused on organic and selective acquisitive growth.

• Dividend policy and share buybacks to continue, balancing reinvestment and shareholder returns.

• Early FY2027 trading shows 6% revenue growth for the first eight weeks, with profitability trends continuing.