Earnings slip at Bidvest on freight and commercial pressure

JSE-listed Bidvest Group reported a 2% drop in headline earnings per share (Heps) for the year ended 30 June 2025, as a flat gross profit margin weighed on performance, the company announced on Sens on Monday morning.

The group declared a final dividend of 453 cents, up 1% from the previous period.

Read: Bidcorp grows profit, ups dividend

Bidvest’s share price fell 4.66% to R225.85 in early morning trade.

Segment performance

Earnings contraction in freight (-10%) and commercial products (-28%) continued in the second half, but Services SA, Services International and Branded Products delivered strong profit growth in the period under review.

Services SA achieved trading profit growth of 13.6%, supported by strong inbound leisure travel, higher airport lounge passenger volumes, and robust water and coffee sales.

The automotive segment showed improved profitability with 2.5% profit growth. In comparison, pharmaceuticals subsidiary Adcock Ingram recovered from what it described as a “very weak first-half performance” (-17%) to end the year with a 5.2% decline compared with the prior year.

Read: Adcock Ingram rockets almost 20% on R4.2bn Natco Pharma bid for major stake

Cash generation

Bidvest – a diversified company that operates in automotive, branded goods, industrial, freight, corporate services, and travel businesses – generated R14.7 billion in cash from operations, a 6% improvement on the prior period.

“When earnings are under pressure, cash is the ultimate indicator of quality,” the group noted, adding that it was pleased with its cash conversion of 95.3% for the year (FY2024: 88.2%).

Bidvest Bank, FinGlobal and Bidvest Life are reported as discontinued operations. The sale of FinGlobal has been completed, while the Bidvest Bank disposal is awaiting regulatory approval from the Prudential Authority.

The group said proceeds from disposals will be used, and have already been used in part, to repay existing debt.

Outlook

Bidvest said recent announcements on Transnet’s award of private sector rail concessions bode well for the revitalisation of the rail sector, adding that this would be positive for South Africa’s overall supply chain.

Read: Transnet to issue request for proposals for private rail partners soon

However, it warned that the state of transition in the world’s largest economies is altering global trade.

“While Bidvest is not directly impacted by the newly introduced trade rules, the conflict and tensions, differing political and social values, as well as supply chain shifts, are all delaying a better business and operating environment, and the consequential economic growth, so badly needed,” it said.

The group remains upbeat about positive momentum in travel and tourism, which it expects will benefit its businesses in South Africa. Broader service offerings in international territories present opportunities to “upsell and cross-sell.”

Listen/read: Focused diversification the key to Bidvest’s strong start to the year

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