Bidvest earnings boosted by ‘exponential’ renewable energy demand

Bidvest reported a significant increase in earnings for the 2023 financial year and upped its dividend by over 20%, as the company benefitted from increased demand for renewable energy products.

Bidvest released its results for the year ended 30 June 2023 today, which revealed strong results.

The company revenue increased by 15% from R99.93 billion in 2022 to R114.91 billion.

It made a trading profit of R11.4 billion, up 17.6% from the previous year.

The company’s basic earnings per share increased by 17.8% to 1,757.3 cents, while headline earnings per share grew by 24.5% to 1,794.8 cents.

“Bidvest’s second six-month period improved on an already impressive interim performance, delivering a commendable result for the 2023 financial year,” the company said.

“The second half’s trading profit growth accelerated to 21.0%. Cash generated from operations for the last six months totalled R10.4 billion, which is a third higher year-on-year, as capital discipline remained a core focus.”

The company said it delivered organic growth led by exponential demand for renewable energy products and travel and tourism services. 

The company’s Services South Africa divisions breached the R 1 billion mark in 2023, and its Freight division delivered trading profit exceeding R2.0 billion, double its contribution from three years ago.

Seven of the company’s divisions reported double-digit trading profit growth off already high bases. 

“Margin management was a key focus area during FY2023, given unprecedented and persistent inflation, particularly in our international geographies, together with record wage inflation and the additional cost of doing business caused by load-shedding and unreliable rail services in South Africa,” Bidvest said. 

The company’s net asset value per share grew from R83.46 in the prior period to R97.07 as at 30 June 2023.

Bidvest declared a final dividend of 439 cents, up 20.6% from last year.