Bidcorp reported an 8.2% increase in trading profit for the fiscal second half of 2026, as normalized underlying operating profit growth reached 10% after adjustments for war and fuel costs.
Revenue rose 5% in constant currency terms, though currency translation from rand strength created a 1.5% headwind. The company, which generates over 95% of revenue outside South Africa, maintained its long-term revenue growth target of 5% to 6% in low-growth, low-inflation markets. Headline earnings per share climbed 6.9% in constant currency, while earnings per share advanced 9.4%.
Gross margin expanded by 30 basis points, aligning with the company’s long-term annual improvement framework of 0.1% to 0.3%. Free cash flow surged to 7 billion rand, while net debt fell to 3.8 billion rand, keeping the net debt-to-EBITDA ratio at a conservative 0.2 times. Working capital days improved to 5 on a three-month moving average, within the company’s sustainable range of 5 to 7 days.
The board declared a final dividend of 6.25 rand per share, lifting the full-year payout by 7%. This marks the fifth consecutive year of dividend increases. Capital expenditure is expected to moderate to 1.5% to 2% of revenue, while management targets operating profit growth above 6% before any acquisition contribution.
Regional performance varied, with Australasia posting record results. The United Kingdom’s trading margin improved from 3.7% to 4.0%, with management outlining a path toward 5% and potentially 6% to 7% in the future. Europe’s margin rose from 5.5% to 6.0%, while South Africa delivered a 15% increase in profitability. Greater China remained challenging, and the Middle East faced disruptions from conflict, volume declines, and elevated supply chain costs since late February.
Bidcorp completed five small acquisitions in the fiscal year and four more in the first two months of fiscal 2027. Current trading in the new fiscal year showed sales growth of 6% in July and August, with profitability tracking ahead of that pace.
The company operates across 31 countries with 31,000 team members. Average weighted GDP growth across its markets was approximately 1.3% to 1.4%, with food inflation in the low 1% range and labor inflation running at 3% to 4% annually.
