Bid Corporation (BID) Trading update summary

Business and Trading Performance

• Revenue grew 5.1% in constant currency, with May exceeding year-to-date averages and strong consumer demand across geographies.

• Trading profit rose 7.0% in constant currency, led by Europe and the UK, despite macro headwinds and cost pressures.

• May saw record weeks in several countries, with volume-driven sales growth and minimal food price inflation.

• Gross margins improved by 20 bps, offsetting higher operating costs, especially from fuel.

• Management remains confident in finishing the year on a positive trajectory, with no major concerns flagged.

Regional and Divisional Performance

• South Africa and South America delivered strong double-digit growth, while the Middle East is recovering from disruptions.

• UK achieved solid profit growth through market share gains and disciplined pricing, despite a tough macro environment.

• Europe delivered strong results, with Italy and Eastern Europe outperforming, and Iberia showing potential.

• Australasia was flat overall; Australia faced cost pressures and weak sentiment, while New Zealand saw recovery and improved sales.

• Asia shows mixed results: Malaysia and Singapore are performing well, but Greater China faces challenges and limited growth prospects.

Strategic Initiatives and Investments

• Absorbing elevated fuel costs has built customer goodwill and future growth potential, despite short-term profit impact.

• Technology investments, including AI, data analytics, and a Digital Acceleration Office in Amsterdam, are improving efficiency and customer insight.

• Vertical integration, light manufacturing, and own-brand offerings are expanding, enhancing margins and value-added offerings.

• Ancillary product ranges are growing, contributing to margin optimization.

• Competition remains high, with focus on pricing discipline, margin quality, and cost control.