Bid Corporation (BID) Q2 2025 earnings summary

Executive summary

• Revenue increased 3.6% to R117.9bn for H1F2025, with 7.1% constant currency growth, reflecting both organic and acquisitive expansion.

• Trading profit rose 6.8% to R6.3bn, or 10.7% in constant currency, with margin improvement to 5.3%.

• HEPS up 6.0% to 1,221.6 cents; constant currency HEPS up 10.0%.

• Eight bolt-on acquisitions completed, expanding geographic reach and product range.

• Management credits success to operational discipline, local currency management, and a stable, experienced team.

Financial highlights

• Gross profit margin improved to 24.1% (H1F2024: 23.7%) and trading margin to 5.3%.

• Cash generated by operations before working capital rose 17.6% to R8.0bn.

• Interim dividend declared at 560.0 cents per share, up 6.7% year-over-year.

• Net debt and leverage increased slightly due to investments and acquisitions, but remain within covenants.

• Operating expenses increased 5.2% due to persistent cost inflation, especially in labor.

Outlook and guidance

• Sales in early 2025 are tracking in line with the first half; profitability trends continue.

• Food inflation expected to stay muted; cost inflation, mainly from wages, to remain sticky.

• Consumer spend likely to stay under pressure due to high interest rates and cost-of-living crisis.

• Continued investment in distribution capacity, value-added manufacturing, and technology platforms.

• Acquisition pipeline remains healthy, with potential new country entries under early exploration.