Bidvest Group Ltd reported an 8.4% increase in trading profit to ZAR 13.1 billion for fiscal 2026, driven by organic growth of 5% and a 61-basis-point improvement in gross margin to 28.3%. Revenue rose 2.9% to ZAR 130.3 billion, while normalized headline earnings per share grew 5.9%, excluding an associate loan write-off.
Operating cash flow after working capital surged 16.9% to ZAR 17.2 billion, with free cash flow up 27% to ZAR 12.5 billion, resulting in a cash conversion rate of 109%, compared with 95% in the prior year. Net debt to EBITDA improved to 1.9 times from 2.2 times, supported by ZAR 4 billion in net debt reduction and ZAR 3.9 billion in gross debt reduction.
Group CEO Mpumi Madisa highlighted cash generation as the standout feature, noting ZAR 17.2 billion in operating cash flow. Group CFO Mark Steyn described the year as a delivery on deleveraging and organic return targets, with cash metrics exceeding expectations. Trading margin expanded to 10% from 9.5%, while operating expenses rose 3.8%, with an organic increase of 2.9%.
The company declared a final dividend of ZAR 4.83 per share, a 6.6% increase from the prior year, maintaining a 3% dividend yield. Bidvest operates in 14 countries with over 750 branches and 130,000 employees, with energy sourcing now including 10% from renewable sources.
Post-year-end, Bidvest completed the sale of a 13.25% stake in Adcock Ingram for ZAR 1.8 billion, reducing debt from the proceeds, while retaining majority control. The disposal of Bidvest Life’s SPA remains pending regulatory approval from the South African Reserve Bank, and the process to sell Bidvest Bank is ongoing. In the U.K., a £20 million working capital facility was added.
Capital expenditure for fiscal 2027 is planned at ZAR 2.5 billion, primarily for freight infrastructure, including a second LPG terminal in Richards Bay. The group’s return on financial leverage reached 38.6%, with a return on invested capital of 13.4%.
Bidvest’s shares closed at $29.34, down 0.24% in regular trading, within a 52-week range of $24.08 to $32.00.
