Bidvest final results 30 June 2012
Revenue for the year ended 30 June 2012 increased by 12.7% to R133.5 billion (2011: R118.5 billion). Operating profit jumped by 22% to R7.1 billion (2011: R5.8 billion), while profit attributable shareholders of the company soared by 25.6% to R4.4 billion (2011: R3.5 billion). Furthermore, headline earnings per share was 27.4% higher at 1 474.2cps (2011: 1 157.4cps).
The directors have declared a final gross cash dividend of 342cps (2011: 255cps) for the twelve months ended June 30 2012.
In the current economic environments in which Bidvest operates their global business, volatility and low growth are the norm. The group's philosophy and culture encourages management to perform despite these circumstances as they are not intimidated by their environments. Significant effort is being directed to ensure that throughout all facets of the group, Bidvest remains true to their tried and tested decentralised and entrepreneurial business model and their "autonomy with responsibility and accountability" culture. Bidvest remains a demand driven business where their customers drive their focus, suppliers their efficiencies, employees their existence and their collective behaviour the results.
In Southern Africa, trading conditions are not expected to show marked improvement in 2013. Despite these constraints, Bidvest's teams will continue to pursue growth opportunities. In 2012, the focus was on restructuring and pursuing organic growth but going forward, a mix of organic and acquisitive growth is expected to drive further gains. In Europe, despite the environmental noise of low growth and market volatility, the management teams remain cautiously optimistic of achieving market share gains and product and geographic expansion. In Asia, growth rates have also begun to dip and lower commodity demand from China has dented sentiment. Management are confident of further growth, both as a result of developing innovative wholesale trading solutions for their markets as well as product range extension combined with regional expansion of the footprint.
Significant management effort is being directed at those operations where performance is below Bidvest's own expectations. In the current competitive markets, the group remains focussed on ensuring they deliver above customer requirements with the most value added solutions. Accordingly management focus remains on cost control, working capital management and generating superior returns on funds employed. Bidvest's financial position remains sound and the group has ample capacity to fund sustainable growth opportunities. Notwithstanding the tough economic circumstances worldwide, they continue to see organic growth opportunities as well as acquisitive expansion of their footprint and service offering, across many of their businesses.
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