The Bidvest Group (BVT) H2 2024 earnings summary

Executive summary

• Delivered solid financial results with trading profit up 8.5% to R12.4bn and revenue up 6.7% to R122.6bn, supported by innovation, technology, and strong M&A execution.

• Five divisions achieved trading profit growth, with four reporting double-digit increases; strong cash flow and consistent operational execution across regions.

• Completed 11 acquisitions, expanding footprint in Australia, Asia Pacific, UK, Ireland, and South Africa, including entry into Asian hygiene and major Australian expansion.

• Strategic exit from the banking industry, with sale of Bidvest Bank and FinGlobal to recycle capital and focus on core operations.

• Nearly R1bn invested in growth capex in South Africa; total R5.0bn deployed on acquisitions and capex.

Financial highlights

• Group revenue rose 6.7% to R122.6bn; acquisitions contributed 2.9% to growth.

• Trading profit up 8.5% to R12.4bn; trading margin improved to 10.1%.

• Cash generated by operations up 15.3% to R14.0bn; cash conversion at 83.4%.

• HEPS up 6.6%, Normalised HEPS up 4.3%; total dividend for the year 914 cents per share, up 4.3%.

• EBITDA up 8.4% to R14.3bn; gross margin declined to 28.4% due to higher costs.

Outlook and guidance

• Positive medium- to long-term growth sentiment, with improving market conditions expected across territories.

• No maize export volumes expected in H1 2025; renewables base remains elevated; strong travel and tourism order book.

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

• Disposal process for Bidvest Bank and FinGlobal underway, aiming for suitable acquirers by end of CY2024.

• Innovation, technology, and margin management remain key focus areas.