The Bidvest Group (BVT) H2 2024 earnings summary

Executive summary

• Delivered solid financial results with trading profit up 8.5% to ZAR 12.4 billion and revenue up 6.7% year-over-year, supported by innovation, technology, and strong M&A execution.

• Five divisions achieved trading profit growth, with four reporting double-digit increases; offshore operations now contribute 22% of profits.

• Completed 11 acquisitions, expanding footprint in Australia, Asia Pacific, UK, Ireland, South Africa, and entering Asian hygiene market; nearly ZAR 1 billion invested in growth CapEx in South Africa.

• Decision made to exit the banking industry, initiating sale of Bidvest Bank and FinGlobal to streamline focus and recycle capital for growth.

• Created 5,841 new jobs, invested ZAR 740 million in staff training, and reduced water and emission intensity significantly.

Financial highlights

• Group revenue rose 6.7% to ZAR 122.6 billion; organic revenue up 3.8%; acquisitions contributed 2.9% to top line.

• Trading profit up 8.5% to ZAR 12.4 billion; organic trading profit up 5.6%; trading margin improved to 10.1%.

• EBITDA up 8.4% to ZAR 14.3 billion; operational cash generated up 15.3% to ZAR 14.0 billion; cash conversion at 83.4%.

• Gross margin declined to 28.4% from 29% due to higher costs and rand weakness.

• Headline earnings per share up 6.6%; total dividend for the year ZAR 9.14 per share, up 4.3%.

Outlook and guidance

• Market conditions expected to remain largely unchanged, but positive sentiment due to political stability and reforms in energy and logistics.

• Focus on reducing debt and cost of debt, with a strong growth pipeline and continued product, service, and geographic diversification.

• No maize export volumes expected in H1 2025; renewables base remains elevated.

• Automotive division positioned for recovery with expanded OEM representation; strong travel and tourism volumes anticipated.

• Continued focus on offshore capital allocation and M&A pipeline, with several acquisitions in progress.