Bidcorp is alert to acquisitions

BID CORPORATION (Bidcorp), the food services business that was spun out of Bidvest, said in an update on general trading conditions yesterday that it was alert to all acquisition opportunities that presented themselves.

For the third quarter of the 2018 financial year, it had spent in aggregate (exclusive of acquisition costs) R906 million on new territory and bolt-on acquisitions. Trading had been positive, largely maintaining the earnings trajectory achieved in the first six months of the financial year.

Currency volatility continued to impact Bidcorp’s rand-translated results, with a negative constant currency impact of 0.4 percent (to the end of March) against the basket of currencies in which the group traded, it said.

“Fundamentals within the global food service industry remain positive, and continued organic growth and bolt-on opportunities remain in all our operating geographical segments.”

In South Africa, it said the group performed credibly in extremely tough operating conditions.

Food inflation had declined markedly since the double-digit rate in 2017, resulting in a challenging trading environment in the Bidfood business.

Bidcorp said the listeriosis outbreak in the third quarter had impacted consumer confidence in chilled processed meats, affecting sales growth in the Crown Ingredients business.