Bidvest earnings expected to rise 26%

Industrial giant Bidvest informed shareholders this morning that it expects its headline earnings per share (HEPS) for the 2023 financial year to increase by 22% to 26% compared to the previous year.

In accordance with JSE Listings Requirements, Bidvest released a trading update this morning informing shareholders that it expects its FY 2023 earnings to increase by more than 20%.

The company expects the following changes to its FY2023 earnings compared to FY 2022:

  • Group HEPS – 22% and 26% increase
  • Normalised HEPS – 15% to 19% increase (excludes acquisition costs, amortisation of acquired customer contracts, and in the base, the impact of a higher corporate tax rate in the UK on Group deferred tax)
  • Group basic earnings per share (EPS) – 15% and 19% increase 

Bidvest said the EPS increase results from a capital loss on the sale of T&C Namibia and other impairments compared to a capital profit on the disposal of a property in the base.

This news follows Bidvest’s strong results for the six months to December 2022, released in March this year.

For H1 2022, Bidvest posted a 15% increase in headline earnings, with revenue growth of 14% to R57.2 billion. 

The company expected renewable energy, mining, agriculture, tourism and hospitality-related sectors to remain healthy.

Bidvest’s full-year results to 30 June 2023 are expected to be released on 4 September 2023.