Bidvest Group reported an 8.4% rise in trading profit to R13.1 billion for the year ended June 30, 2026, driven by organic revenue growth of 5.0% and margin expansion across divisions. Continuing headline earnings per share advanced 6.0% to 1,864.2 cents, reversing a 3.2% decline in the prior period, while total revenue increased 2.9% to R130.3 billion.
Cash generation remained the standout performer, with operating cash flow after working capital rising 16.9% to R17.2 billion. Free cash flow climbed 26.9% to R12.5 billion, lifting the cash conversion ratio to 109% from 95% a year earlier. The group reduced net debt by approximately R4 billion to around R25 billion, pushing the net debt-to-EBITDA ratio down to 1.9x from 2.2x. Management noted the ratio remains above its internal target range of 1.5–1.8x, though it remains well below covenant limits of 3.0x.
Operating margins expanded across most segments, with gross profit up 5.2% and gross margin improving 61 basis points to 28.3%. Trading margin widened 50 basis points to 10.0%, while the effective tax rate was 25.4%. The final dividend was set at 483 cents, a 6.6% increase, maintaining the group’s payout discipline amid strong cash flows.
Divisionally, Services International delivered revenue of R44.0 billion and trading profit of R4.4 billion, with hygiene services revenue growing 18% on a constant currency basis. Freight posted a 10.3% rise in trading profit to R2.3 billion, supported by a 25-year liquid bulk terminal agreement signed in South Africa. Commercial Products saw trading profit surge 27.2% to R1.2 billion, while Automotive achieved a 7.1% profit increase as Asian brand sales tripled year-over-year.
Bidvest Bank’s performance contributed to the group’s deleveraging efforts, with available funding totaling EUR545 million and R10 billion in uncommitted facilities. The outstanding 2026 Eurobond, valued at $186 million, is scheduled for settlement using capital recycling proceeds. The weighted average cost of debt edged up to 6.3% from 6.2%, with variable rate exposure remaining elevated at 60%.
Management characterized the year as a transition from resilience to renewed momentum, with FY2026 described as delivering a stronger operating result rather than a low-base rebound. No material mergers or acquisitions are planned in the near term, with FY2027 positioned as a period for compounding existing gains. The group enters the new financial year with improved earnings momentum, declining leverage, and multiple internal growth levers in place.
