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THE BIDVEST GROUP LIMITED - Divisional Day - Management update on general trading conditions November 25 2014

Release Date: 25/11/2014 16:12
Code(s): BVT     PDF:  
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Divisional Day - Management update on general trading conditions November 25 2014

The Bidvest Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1946/021180/06)
Share code: BVT
ISIN ZAE000117321
("Bidvest" or "the Company" or “the Group”)

Divisional Day - Management update on general trading conditions
November 25 2014

Shareholders are advised that the executive management of the group today
met with members of the financial community, including shareholders and
financial analysts, for a presentation on current market conditions and the
group’s current trading.

Management commented as follows:

1. Current market conditions and trading

      Southern Africa:
      - As noted in the 2014 financial results, trading conditions in the last
        quarter in South Africa (April, May and June 2014) were weak,
        compounded by the impacts of significant labour disruption in the
        economy and a weakening consumer market.
      - These trading conditions have continued into the first quarter of the
        2015 financial year. There appears to be low confidence in the SA
        economy at the moment and customers seem hesitant, delaying
        buying decisions.
      - Trading results in Namibia are well below our expectation
        principally due to the fishing operations being impacted by the low
        quota allocation, the cost and availability thereof. This continues to
        place the results of the fishing business at risk.
      - Most of the Commercial operations within Namibia are operating
        well.
      - Mvelaserve Limited has been well integrated and is contributing
        positively.
      - Overall the trading results for Southern Africa in the first quarter are
        below expectation.
      - October has been a better trading month and a similar improvement
        is expected in November.

      International Food group:
      - The start to the financial year has been good for the Food Group,
        with solid results being achieved from all the component parts of the
        business.
      - Although trading results have been assisted by Rand weakness, the
        underlying businesses results are strong. Eliminating the effects of
        the acquisitions of Italy, PCL Logistics, Spain and Brazil, the food
        group is showing solid organic growth, which is a commendable
        achievement in the current global economic environment in which
        the businesses operate.
      - The new acquisitions in Italy (DAC) and the UK (PCL Logistics)
        have bedded down well and are trading in line with expectations.
      - Trading in October has been positive and similar results are
        expected in November.

       Corporate:
       - Mark to market portfolio investment gains are significantly lower in
         the first quarter of 2015 versus the comparative period in 2014.

2. General

       -   Management aren’t complacent, we remain focused on the basics
           and continue to innovate as a means of managing margins, costs
           and net assets.

       -   Group’s strategic direction:
              - Evaluation of the Group’s strategic positioning going forward:
                     - Board comfortable with the strategic direction and
                       current structure of the Group.
                     - Scale for Bidvest remains important in the current
                       environment.
                     - The succession planning process continues.
              - IPO evaluation process confirmed the attractiveness of the
                foodservice asset.

       -   Acquisitions update:
              - Adcock Ingram:
                     - Bidvest still doesn’t exert any management control
                       over Adcock
                     - The business has been stabilized, currently profitable
                       but still has a way to go.
                     - Bidvest’s position on control remains unchanged at
                       this stage
              - Management continues to seek out acquisition opportunities.

       -   Amended BEE codes will present a challenge for the Corporate
           sector and Bidvest is aggressively addressing the changes.


A full recording of the presentation is available on the group’s website
www.bidvest.co.za

November 25 2014
Johannesburg
Sponsor: Investec Bank Limited

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