Bidcorp set for a record year despite load-shedding struggles

Bidcorp informed shareholders today that it is set for a record year, despite a previous update that indicated it was struggling in the local market.

In accordance with JSE listing requirements, the company informed its shareholders today that it expects its results for the year ended 30 June 2023 to differ significantly from the previous year.

The company referred its shareholders to the trading update it provided for the ten months to end-April, wherein Bidcorp reported growth in Australasia, the UK and Europe. 

Bidcorp said this trading momentum continued into May and June, resulting in a record performance for the company.

Bidcorp expects the following changes to its earnings for the year ended 30 June 2023 compared to the year ended 30 June 2022:

• Headline earnings per share are expected to increase by 32% to 36%.
• Basic earnings per share are expected to increase by 40% to 44%

In its 10-month update, Bidcorp said trading conditions in South Africa remain difficult amid low economic growth exacerbated by elevated levels of load-shedding.

Bidcorp also said it’s closely monitoring credit risk in a few jurisdictions, although currency volatility positively affected its results when translated to the rand.

In addition, diversification away from South Africa means Bidcorp still expects to post record trading results for the full year.

The company cited the devastating earthquakes in Turkey and short-term stock valuation issues in the Middle East and Chile as further challenges for its emerging-market operations.

It is expected that Bidcorp will release its audited results for the year ended 30 June 2023 on 30 August 2023.