The Bidvest Group (BVT) H2 2026 earnings summary

Executive summary

• FY2026 delivered strong growth in trading profit (up 8.4% to ZAR 13.1 billion) and revenue (up 2.9% to ZAR 130.3 billion), with all divisions contributing to profit gains.

• Cash generation was exceptional, with free cash flow up 27% to ZAR 12.5 billion and cash conversion at 109%.

• Strategic focus on organic growth, deleveraging, and disciplined capital allocation, with no material M&A planned for FY2027.

• Major investments in international hygiene services and terminal operations are now contributing meaningfully to profit and margin uplift.

• Sustainability targets were exceeded, and innovation initiatives advanced, particularly in hygiene and technology.

Financial highlights

• Revenue reached ZAR 130.3 billion (+2.9% YoY), trading profit ZAR 13.1 billion (+8.4%), and final dividend ZAR 4.83 per share (+6.6%).

• Gross profit rose 5.2%, with margin up 61 bps to 28.3%; trading margin improved to 10% from 9.5%.

• Continuing HEPS up 6% to 1,864.2 cents; group EPS up 1.3%.

• Cash generated by operations after working capital was ZAR 17.2 billion (+16.9%), with a cash conversion ratio of 109%.

• Net debt reduced by ZAR 4 billion; leverage down to 1.9x net debt/EBITDA.

Outlook and guidance

• Entering FY2027 with stronger earnings momentum, improving returns, declining leverage, and multiple self-help growth opportunities.

• Focus remains on organic growth, cash generation, deleveraging, and rebuilding returns.

• No material near-term M&A; free cash flow to be used for further debt reduction.

• Targeting net debt/EBITDA of 1.5x-1.8x by year-end, excluding proceeds from asset sales.

• Cautious on El Niño impact on bulk grain volumes and ongoing macro volatility.