The Bidvest Group (BVT) H2 2025 earnings summary

Executive summary

• Delivered resilient results with strong cash generation and operational excellence, despite mixed divisional performances.

• Services South Africa, Services International, Branded Products, and Automotive divisions achieved trading profit growth, while Freight, Commercial Products, and Adcock Ingram saw contractions.

• Nine acquisitions completed, including Citron (North America), with major disposals such as FinGlobal sale concluded and Bidvest Bank disposal pending.

• Portfolio streamlined through ongoing disposals and integration of new acquisitions across SA, UK, Australia, and North America.

Financial highlights

• Group revenue increased 5% to ZAR 127 billion, with organic revenue flat due to price-sensitive demand and currency effects.

• Trading profit rose 1% to ZAR 12 billion; trading margin declined from 9.9% to 9.5%.

• Cash generated by operations grew 5.8% to ZAR 14.7 billion, with a cash conversion ratio of 95%.

• Net debt to EBITDA increased to 2.2x, remaining within covenant limits.

• Final dividend of ZAR 4.53 per share, up 1.3% year-over-year.

Outlook and guidance

• Focus on building the world’s largest hygiene business, prioritizing organic growth over M&A in FY 2026.

• Targeting net debt to EBITDA below 2x in FY 2026 and closer to 1.5x in FY 2027.

• Bullish near-term outlook, leveraging new business wins, contract retention, and streamlined group structure.

• Tax rate expected to normalize around 25%, with interest rates in the low 6% range for FY 2026.

• Full-year contribution expected from Citron NA and UK acquisitions; plans to delist Adcock Ingram and leverage new co-shareholder expertise.