The Bidvest Group (BVT) H1 2026 earnings summary

Executive summary

• Achieved resilient interim results with revenue up 3.7% to R66.7bn and trading profit up 6.9% to R6.7bn, driven by operational excellence, margin gains, and strong cash generation.

• Portfolio realignment and international expansion, especially in hygiene services, rebuilt the offshore footprint, now contributing 27% of revenue and 25% of profits; hygiene services account for 55% of Services International trading profit.

• Major acquisitions included Aquatico, Citron, and Cleanbio, with Adcock delisted and Bidvest Life SPA signed; M&A pipeline now largely depleted.

• Free cash flow increased by nearly R2bn year-over-year to R3.8bn, supporting deleveraging and economic value creation.

• Bidvest Bank sale to Access Bank terminated; sale process restarted; Bidvest Life disposal pending regulatory approval.

Financial highlights

• Revenue reached R66.7bn (+3.7%), trading profit R6.7bn (+6.9%), and gross profit margin improved by 43bps to 28.1%.

• Trading margin expanded to 10.1% (+31bps); HEPS up 5.1%, normalised HEPS up 5.3%; interim dividend of 495 cents per share, up 5.3%.

• Free cash flow at R3.8bn, up from R2bn; cash conversion improved to 69.8% from 44.8%.

• Net debt to EBITDA stable at 2.2x; ROFE at 37.6%, ROIC at 13.4%; EBITDA interest cover at 6.4x.

• Net asset value per share: 11,547 cents (vs. 10,861 prior year); net debt: R33.4bn.

Outlook and guidance

• Focus on accelerating organic growth, improving cash generation, and deleveraging; growth capex concentrated in Freight.

• Expect stronger cash performance and working capital release in the second half.

• Offshore hygiene, hospitality, and testing sectors to continue strong performance; improved automotive and Adcock synergies anticipated.

• No material M&A planned; capital deployment limited while deleveraging.

• Macroeconomic outlook in South Africa is optimistic, with lower interest rates, declining inflation, and improved credit ratings.