Slides
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Investor Presentation2025for the year ended 30 June
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01 IntroductionMpumi Madisa02 Financial reviewMark Steyn03 Operational reviewsMpumi Madisa04 Strategy & outlookMpumi Madisa05 Appendices Agenda
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Introduction
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 20254 Strong financial performance moderatedExecutive overviewOperating fundamentals remain intact with future earnings growth bolstered•4 divisions reported trading profit growth of R731 million (+6.1%)• Services SA +13.6%• Services International +12.1%• Branded Products +7.8%• Automotive +2.5%•Profit contraction in Freight (-10%), Commercial Products (-28.4%), Adcock Ingram (-5.2%) moderated profit by R665 million (-5.5%)•Capital deployed for growth • 9 acquisitions concluded across SA, UK, Australia, NA• Capex for expansion of bulk liquid storage, water purification capacity•Normalised continuing HEPS +0.9%•Continuing HEPS -3.2%•Cash is king• Cash generated by operations R14.7 billion (+5.8%)• Excellent cash conversion ratio 95.3% (FY24 88.2%)•Portfolio steamlining• FinGlobal sale completed• Bidvest Bank disposal subject to regulatory approval • Bidvest Life disposal progressing well•North America a new growth territory through acquisition of Citron •25-year bulk liquid terminal concession awarded in Richards Bay
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 2025505001 0001 5002 000FY19 FY20 FY21 FY22 FY23 FY24 FY251H2H02004006008001 000FY19 FY20 FY21 FY22 FY23 FY24 FY251H2H •Resilient result•+new business, more customer channels, incremental offerings, acquisitions•-bulk commodity weakness, price sensitivity•Improved second half performance• 1H trading profit R6.3 billion (-0.5%)• 2H trading profit R5.8 billion (+1.9%)•GP margin broadly stable; Trading profit margin slightly lower•Expense management excellent•ROFE 36.9% (FY24 39.3%); ROIC 14.0% (FY24 16.1%)•M&A • Citron → maiden entry into NA• New Testing, Inspection & Compliance (TIC) focus in SA → Dekra, WearCheck • Complementary product and service lines added in SA → Spec Systems, LK Products; UK → Nexgen, Countrywide; Australia → Egroup•Sustainability Framework • Closed 1stiteration (FY19-FY25)• Approved 2035 Framework Financial highlightsNormalised headline earnings (cents)DPS (cents)
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Financial overview
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 20257#Interest adjusted for IFRS16* As % of trading profit Financial highlightsContinuing operations unless specifically indicated otherwiseChangeYear ended 30 June 2024Year ended 30 June 2025R billion4.9%120.7126.6Revenue↓27.9%27.7%Gross profit margin ↓18.3%18.5%Expense margin 1.7%13.713.9EBITDA0.7%12.012.0Trading profit↓9.9%9.5%Trading profit margin (3.2%)1 818.01 759.5HEPS (cents)0.9%1 869.81 886.6Normalised HEPS (cents)1.3%447.0453.0DPS (cents)↓7.0x6.1xEBITDA interest cover (times) # ↑1.7x2.2xNet debt/EBITDA (times)5.8%13.914.7Cash generated from operations after working capital↑88.2%95.3%Cash conversion *↓39.3%36.9%ROFE ↓16.1%14.0%ROIC
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8THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 2025 •Revenue +4.9% (flat organic)• Growth in Services International, Services SA, Automotive and Branded Productssupported by acquisitions• Price sensitive demand and new business, lower renewable sales, negative price mix•Gross profit +4.3%• Gross margin broadly flat at 27.7%• Business mix and contract margin management diluted by negative operating leverage in Freight and reduced renewables•Expenses +6.2% (+2.8% organic)• Excellent effort• Increased utility costs• Business restructuring and rationalisation •Trading profit +0.7% (-4.9% organic)• Excellent results from Services SA and Branded Products • Impressive result from Services International• Respectable result from Automotive as diversification strategy unfolds, • Freight impacted by reduced bulk volumes• Commercial Products was below expectation• Strong 2H recovery from Adcock•Effective tax rate 23.3% - legacy offshore taxes prescribed•Acquisition costs up substantially on high M&A activity Income Statement analysis
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 20259 Good cash generation•R15.9 billion cash generated by operations before working capital•Working capital absorption of R1.2 billion, R0.4 billion less than prior year• Organic trade payables decrease due to lower inventory purchases• Need to reduce inventory days in select businesses•Cash conversion ratio 95% (FY24 88%)Cash flow (Rbn) Cash generated vs working capital (Rbn)5.95.46.66.57.37.58.07.48.17.80.32.1(2.6)1.3(5.6)3.0(4.2)(2.7)3.62.4123%143%51%88%4%76%33%88%45%95%1HFY21 2HFY21 1HFY22 2HFY22 1HFY23 2HFY23 1HFY24 2HFY24 1HFY25 2HFY25Cash generated from ops pre wcNet wcCash conversion15.9(1.2)(3.1)(9.1)(2.5)5.5(2.5)(3.3)Cashgeneratedfrom opspre WCWorkingcapitalabsorbedCapex Cash effectsof investingactivitiesNetfinancechargesTaxation Distributions Casheffectsof financingactivities
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202510012301020304050FY20 FY21 FY22 FY23 FY24 FY25SAInternational syndicated debtEurobondCanadian term loanAustralian term loanNet debt/EBITDA (rhs) •Net debt R32.9 billion• R7.7 billion increase like-for-like YoY • Working capital investment (R1.2 billion)• Acquisitions (R9.1 billion)•Proactively shifting debt funding• Upsized domestic bonds at smaller spreads with longer tenure• Issued preference shares for bolt-on acquisitions• Tender offer for $322 million of international bond funded by RCF•Net debt/EBITDA 2.2x (FY24 1.7x)•Available funding → GBP219 million+ R14.5 billion Enabling capital structure: debt quantum, tenure & ratesDiverse debt sources Covenant 3.0x / Internal limit 2.5x / Internal sweet spot 1.5-1.8x
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202511 Principle: Match borrowingsto earnings stream •Net offshore debt FY20 R17.2bnto FY25 R19.6bn•Cash generated offshore grewfrom R1.1bn FY20 to R3.9bn in FY25 Enabling capital structure: debt quantum, tenure & rates 0100200300400 FY20 FY21 FY22 FY23 FY24 FY25Net debt (covenant)Offshore debtCash generated by operationsCash generated offshore Cash from operations vs net debt position
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202512 Enabling capital structure: debt quantum, tenure & ratesProactively manage liquidity•Local bond issued at smallest spread and increased tenor•Syndicated RCF/Term facility extended to Jun28•Tender offer on Eurobond to manage refi risk (and captured discount)•Addressing upcoming maturitiesMove with the interest rate cycle•FY21 50% variable vs FY25 78% variable• Net finance charges +10.2%. Higher net borrowings partly offset by lower average interest rates • ex IFRS16 and hedge fair value adjustment +14.5%•Accessing new & cheaper funding sources05 00010 00015 00020 000FY26 FY27 FY28 FY29 FY30 FY31+Local debtForeign debtMaturity - net debt (Rm) current …FY26 FY27 FY28 FY29 FY30 FY31+Local debtForeign debt0%2%4%6%8%010203040FY19 FY20 FY21 FY22 FY23 FY24 FY25Net debt (Rbn)CODCost of debt rising and mix shifted to variable… and the plan
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13THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 2025 •Bidvest Bank, FinGlobal, Bidvest Life •Disposal processes• Signed SPA with Access Bank for Bidvest Bank. Awaiting regulatory approval • Closed FinGlobal disposal •Strong operational result• Bidvest Bank challenging top line and capital deployment.The deposit book remains stable and all regulatory ratios are healthy • FinGlobal and Bidvest Life’s results were strong•In terms of IFRS depreciation and amortisation was suspended• Adjusted for this in normalised headline disclosureDiscontinued operations
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Divisional overview
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Services International
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202516 Services International•Another excellent result •Maiden entry into North America with Citron acquisition.• UK integration completed•Broadly equal profit split between FM and Hygiene•Australian operating focus sharpened on an integrated offering•New business growth and client retention has been positivein all geographies•Significant wage increases successfully recovered•Collaboration and innovation are key differentiators•Excellent cash generation Hygiene services•Strong sales and profit growth in SA •Hygiene pool growth complemented by broader consumable offering in the UK•Bolt-on acquisition broadened basket and reach •Citron offers exciting growth opportunitiesFacilities management services•Impressive performance in SA from both new business winsand excellent cost control•Solid offshore growth driven by new business wins, improved margin, particularly in the UK, but moderated by reduced ad-hoc / project work CEO: Alan FainmanRevenueR43.2bn+9.8%Trading profitR4.2bn+12.1%Trading margin9.8%+20psEBITDAR4.9bn+10.1%Funds employedR2.8bn-1.9%ROFE152.0%+1 900bps
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Freight
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202518 Freight•Result in line with expectation•Almost no maize exports and bulk mineral mix changes overshadowed outstanding performances• Liquid and gas volumes increased 6% supported by new capacity• Clearing and forwarding activity increased from both existingand new customers, supported by strong overland demand• Activity in Namibia remained buoyant. Bulk volumes grewand oil and gas project momentum continued•The expected 2H seasonal uptick in agricultural commodities handled did not materialise•Local and global trade environment remains challenging, impacted by conflicts, the uncertainty of the U.S. tariffs, and shifts in supply chains, which all affect shipping capacity and freight rates•Restructuring in Mozambique complete. Revised business strategy being implemented•Fuel tanks commissioned in Richards Bay in May 2025•R120 million capex approved for multipurpose depot and in-port warehouse in Namibia•25-year bulk liquid terminal concession in Richard Bay awarded CEO: Wiseman MadinaneRevenueR9.0bn+2.1%Trading profitR2.1bn-10.0%Trading margin23.3%-313 bpsEBITDAR2.4bn-7.4%Funds employedR5.1bn+1 880%ROFE41.2%-1 320bps
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Services SA
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202520 Services SA•Outstanding result with all four divisional clusters delivering good growth•Hospitality & Catering cluster had an exceptional performance as most airport lounges return to normal operations after refurbishments•Allied cluster produced pleasing results with stand-out performances in water sales and contract gains • Investment made to increase water purification capacity•Travel cluster experienced a mixed trading result. Corporate travel was under pressure but inbound leisure travel was buoyant• The forward order book is healthy•The Security cluster delivered a solid performance. Innovation and a unique bundle of products and services delivered value to customers in a competitive market• BidAir Cargo result was a highlight•Acquired WearCheck delivering as expected•Cash generation was exceptional CEO: Akona MatsauRevenueR12.7bn+7.9%Trading profitR1.4bn+13.6%Trading margin11.4%+57bpsEBITDAR1.8bn+11.5%Funds employedR1.4bn+1 495%ROFE103.0%-90bps
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BrandedProducts
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202522 Branded Products •Impressive trading profit growth with and without bolt-on acquisitions•Excellent margin management gained from productionefficiencies and well executed operating cost managementand pricing strategies.•Office Products cluster’s sales were stable, and trading profit increased, due to positive mix, good cost managementand innovation within key businesses: • Strong office automation copy-click revenue growth,well ahead of lower-margin machine sales • Market leading office furniture solutions and products offered, backed by efficient local manufacturing culminated in excellent growth off a high base•Data, Print and Packaging cluster delivered a strong trading profit result despite lower demand• New business wins commendable • Customer-centric innovation very pleasing and offeringbroadened• Project work declined•Consumer Products businesses faced subdued demand but still delivered a strong trading profit result on improved mix and cost management•ROFE moderated due to aging inventory and strategic capex CEO: Gail SolomonRevenueR13.0bn+0.8%Trading profitR1.1bn+7.8%Trading margin8.6%+56bpsEBITDAR1.2bn+8.7%Funds employedR3.0bn+10.8%ROFE37.7%- 110bps
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CommercialProducts
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202524 Commercial Products•Trading profit below expectation •Weak manufacturing and industrial demand•Expected contraction in renewable energy product sales exacerbated by sharply lower gross margin•Restructuring concluded in four businesses to align to current trading•Impressive performances in plumbing wholesaling, alternative energy projects, packaging and heavy industrial operations•Restructuring and strategic resets in leisure businesses yielding benefit •Alternative energy order book remains very healthy despite strong delivery during the year•Work continued to introduce private label products in plumbingand electrical wholesale offering•Inventory, particularly renewable products, needs continued attention•Good expense management•Excellent cash generation•ROFE sharply lower CEO: Howard GreensteinRevenueR17.0bn-5.3%Trading profitR0.9bn-28.4%Trading margin5.5%-176bpsEBITDAR1.1bn-24.8%Funds employedR5.8bn-0.8%ROFE16.0%-610bps
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Automotive
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202526 Automotive•Reasonable result•Diversification strategy taking shape•Performance boosted by acquisitions•Highly competitive market with little structural sector growth•Vehicle ownership patterns changing•Franchise vehicle retail pivot continued• Additional brands’ dealer points secured• Closed 7 underperforming dealerships• Restructuring and automation implemented to mitigatemargin pressure•New and used vehicle sales slightly higher but at compressedGP margins. Stable aftersales contribution•Non-franchised vehicle retail • Exceptional Burchmores performance • Cubbi expanded from one site to five•Allied services • Outstanding Dekra performance• Serco finished the year strong with a good order book. Innovative products launched • Good result from Bidvest Insurance as product penetrationimproved and new sales channels were activated. Investment portfolio was derisked• Compendium delivered a good result CEO: Carla SeppingsRevenueR27.2bn+6.0%Trading profitR0.9bn+2.5%Trading margin3.3%-11bpsEBITDAR1.0bn+7.3%Funds employedR3.8bn+7.8%ROFE24.0%-130bps
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Adcock Ingram
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202528 Adcock Ingram•Bidvest shareholding 64.8% • Natco offer to minority shareholders•Adcock retained its status as the #1 pharmaceutical playerin the SA private market•Revenue growth was muted due to a slowdown in boththe independent and pharmaceutical wholesale channels,the latter having reduced their average inventory holdingson several key brands• Average annual price realisation of 4.3% • Organic volume decline of 3.1%•GP margin decline reflect a less favourable sales mix and lower factory recoveries•Consumer → Personal care products showed good growthin the pharmacy and retail channels; numerous line extensionsof established brands were launched•OTC → Average 6.2% price increase; -5.4% volume due to repatriation of a portfolio of brands to a multinational company; high demand for the winter basket •Prescription → -5.7% organic volumes; significant factoryunder-recoveries•Hospital → +1.9% organic volumes but significant production challenges CEO: Andy HallRevenueR9.8bn+1.2%Trading profitR1.2bn-5.2%Trading margin12.0%-81psEBITDAR1.3bn-4.0%Funds employedR5.8bn+10.9%ROFE23.2%-300bps
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Strategy & outlook
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202530 5-year reflection: FY2021 - FY2025 43% ↑R126bnR88bnRevenue50% ↑R12bnR8bnTrading profit9% ↑R15bnR14bnCash generated49% ↑1 760 cents1 183 centsHEPS54% ↑923 cents600 centsDPSFlat 14%14%ROIC16% ↑37%32%RoFEGlobal & local landscapeFY2025FY2024FY2023FY2022FY2021Covid pandemicDisrupted supply chainsKZN floods:Durban port closureKZN riots:Violence and localsupply disruptionUkraine warGlobal energy crisisRising energy & food prices drive inflation higherGlobalsupply chainsfurther disruptedInflation peaksUK 6.8% RoI 5.8% SA 6.3%Interest rates peakUK 5.25% RoI 5.25% SA 11.75%Rising labour costsUK 9.7%RoI 7.6%SA 9.6%Highest cost of debt levelssince 2008 (BVT fin exp +25%)Increased frequencyof extreme weather events globallyHighest number of political changes globallyGNU establishedin SALowest GDP growthGlobal deflation& interest rate cutsGeopolitics increase global economic uncertainty & equity market volatilityUS tariff war drives supplychain uncertainty & volatility Bulk export volume contractionUK 0.7% RoI 3.2% SA 0.5% Aus 0.6%Bidvest’s response to complexity
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 20253163.016.4(10.9)(15.3)(16.8)(29.3)0306090Cash generatedDebt raisedInterestDividendCapexAcquisitions-2 000 00002 000 0004 000 0006 000 0008 000 00010 000 00012 000 00014 000 000FY19 FY25ServicesServices acquisitionsBBPAdcock acquisitionFreightBCPAutoBCR soldAllied acquisitionsFin ServFin Serv sold 5-year reflection: FY2021 – FY20255-year CAGR and net capital deployed to pursue growth strategy •5-yr CAGR revenue +10.4%; trading profit +11.9%•Noticeable expansion capex in Freight (~R2bn), Aquazania, store roll-out (Plumblink, Voltex) strategic properties (~R1bn)•Six-monthly dividends (only skipped COVID interim div) yielding 3-3.5%Trading profit changeCumulative capital deployed036912150306090120150FY20(Covidadj)FY21 FY22 FY23 FY24 FY25RevenueTrading profitRevenue and trading profit progression (Rm)
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202532 Looking ahead Our values: Accountability • Honesty • Integrity • Respect Sustainability Framework 2035FY2026 - FY2030•Largest international hygiene services provider in the world•S79 leases to secure Freights longevity >2050•Increase exposure to structural growth areas in SA –TIC, water purification & storage, travel & tourism•Organic trading growth backed by strong cash conversion•Continue investing in building best everyday essential product offering in SA•Africa supply opportunities•Enabling, flexible, cost-efficient capital structureEmpowering our people through inclusive development, lifelong learning, and future-focused leadershipPeopleDriving positive change with integrityDriving excellence and sustainable growth through ethical governance, accountable leadership and inclusive economic growth.PurposePerformance
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202533 Looking ahead: hygiene services•Bidvest caught up to largest competitor• Competitor - 70 countries; No1 in ⅓rdof these• Other competitors mainly Europe or Americas focused• Bidvest - 11 countries; No1 in 8•Structural growth drivers for est 1.5-2x GDP• Urbanisation• Aging population• Period dignity awareness• More females in the workplace/schools/universities• Wellness•On our way to building the largest hygiene business in the worldCompetitive advantage:Scale Route densitySourcingRegulation £576m0200400600800FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26CompetitorBidvest HygieneRevenue (GBPm)£106m050100150200FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26CompetitorBidvest Hygiene£103mTrading profit (GBPm)£745m
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202534 Outlook•Bullish about FY2026, notwithstanding global volatility and uncertainty and low growth domestically•Financially focused on• Delivering real organic growth from investment base• Improving cash generation further•Debt → reduce gross debt; optimise debt mix and related finance costs; extend tenor; and proactively manage maturities • Reducing overall gearing to below 2.0x EBITDA in FY2026 and target 1.5x EBITDA in FY2027•Operationally focus on: International• New business wins• Contract retention• Full year contribution from Citron NA and UK• Continued investment in people, innovation and operational excellence• Leverage sourcing synergies across a large-scale FM and hygiene operation • Invest in sales capacity to drive hygiene growth in the USASouthern Africa• Leverage opportunities from growing travel and tourism sector• Expand testing, inspection and compliance offering• Grow market share off uniquely integrated offerings• Trading businesses growth driven by new store roll-outs, brand and product launches• Bulk grain & mineral volumes cyclically in the base, reducing future earnings volatility• Conclude bulk terminal lease negotiations• Delist Adcock Ingram and leverage pharmaceutical expertise of new co-shareholder to accelerate growth
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Annexure
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202536 •Ownership of the largest hygiene business in Canada (Citron) with a presence in four US states•Australia’s high inflation, interest rates and persistent labour pressures concerning, as is the UK macro environmentInternational operations•Pleasing growth in Noonan and PHS, boosted by acquisitions. Product penetration receiving focus•Citron integrated and performing as expected•Singapore business capacitated in terms of technology, sales and offering •New business wins in the UK and Ireland very pleasing•Integrated BIC Consolidated showed marginal growth after a difficult trading year. Integrated offeringgaining recognitionSouth African operations•Exceptional performances from Steiner and Prestige •Strong momentum in pest control services •Major client retention and pleasing new business wins•Year of transition at Bidvest FM necessitated restructuring, good controls and continued pursuit of new opportunities resulting in acceptable marginsLooking ahead•Innovation and scope of offering, major differentiating factors•Recent new contract wins stillto contribute•North America platform for multi-year organic growth•Pursuit of divisional synergies across all territories gaining momentumServices International
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202537 Bidvest Tank Terminals •Increased storage capacity 10% (butane spheres, fuel and multi-purpose tanks). •6% volume growth → + fuels, oils, gasses; - veg oilBidvest International Logistics•Another strong performance from international and overland logistics•Greater volumes secured through international and continental agency networkSouth African Bulk Terminals •Maize volumes (-83%) below 10-yr average•19% volume decline → - maize, soyabean, sorghum; + wheat. Rice stable•Negative operating leverage resulted in profit contraction•Bulk Connections •Solid result in challenging trade conditions and negative product mix•1% volume growth → + manganese, chrome. - ferrochrome, coal •Chrome and related product back to significant proportion of volumes handled Bidfreight Port Operations•Less volumes handled. Start of fertiliser season delayed•Operations in Durban traded down but coastal stevedoring grew slightlyManica Group Namibia•Another excellent result with sulphur, fertilizer, copper concentrates, wheat, sugar and oil and gas volumes the key drivers Bidvest SACD grew export volumes with warehouse capacity being increasedNaval restructured and business model in transitionBidvest Marine Services successfully integrated multiple businesses into a new vertical to extract synergies Looking ahead•Added tank capacity still to reachfull potential•Cost control remains a key focus,and opportunities to reduce costsare being explored•Not anticipating any real changein maize exports•Wheat and rice import volumes stable going forwardFreight
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202538 Security and Aviation•Economic climate in SA contributing to tough trading conditions and pricing pressures •Margin protection is paramount. Pleasing new business wins•Stellar performance from BidAir Cargo•Technology offerings in the cluster poised for growthHospitality and Catering •Another spectacular result from Lounges. Refurbishment programme complete and loungeoffering upgraded. Record volumes of passengers through facilities •Structural changes in catering services amid a very competitive environment Allied •Aquazania, Execuflora and TopTurf delivered fantastic resultsTravel•A difficult global trading environment with corporate travel under pressure and geopolitical changes influencing travel •Inbound leisure travel showing growth •Results influenced by improved rebate negotiations•Global travel corporate action introduced uncertaintyTIC •WearCheck broadening its range of tests•Benefit of new business contracts materializing Looking ahead•Pricing pressures to persist•Despite tough trading conditions, overall sales pipeline is encouraging•Expansion in the TIC sector•Enhanced sales and cost focus across the division•Additional capacity in purified water post investmentServices SA
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202539 Data, Print and Packaging•Tough trading environment earmarked by pricing pressure•Formation of Bidvest Labels aggregates product from the three facilities instead of silo specialisation•Operating expenses well controlled and efficiencies extractedOffice Products•Konica Minolta focused on commercial sales. Unit sales were lower but copy-click volumes higher•Exceptional results continue at Cecil Nurse driven by growth in most regions, excellent margin and cost control, improved sales mix•Waltons’ overzealous pricing strategy resulted in compressed margins without the commensurate volume increase to mitigate this. The Namibia business continued to trade very well as did BrandabilityConsumer Products•Silveray delivered a good result •Interbrand protected its market share in a competitive market which resulted in a lower margin•Kolok held its own despite continued contraction in its core print consumable business•Home of Living Brands introduced new products and rebuilt brand credibility•Bolt-on acquisition of LK Products broadened the product offering and increased local manufacturing capacityLooking ahead•Product realignment, innovationand expansion remain strategic focus areas•Market share gains are being pursued•Evaluating white label opportunities•SA market expected to remain subdued and global trade shiftsto impact product sourcingBranded Products
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202540 •Public infrastructure neglect and a contracting manufacturing base continue to have a major negative impactTrade•Bidvest Electrical, specifically Voltex Wholesale, Electech and Waco under tremendous profitability and margin pressure•Voltex MVLV delivered a strong performance as it delivered on large projects with more in the order book•Record results delivered by Plumblink on the back of trade and contract sales growth. 8 new stores opened and 11 revampedIndustrial (Packaging, General, Warehousing)•The Buffalo Tapes and Afcom combination continues to prove beneficial•Reduced profits as once-off sales did not repeat in Berzacks, Burncrete, BMH and A2•Renttech faced subdued market activity DIY/Tools/Workwear•G Fox factory sales were strong but wholesale activity was lower•Academy Brushware held its own while demand in Matus’ various channels were mixedYamaha achieved an excellent result given gross margin focus and benefits transpiring fromthe prior year restructuringKing Pie benefitted from new management and strategic change in its retail product offering and delivery Looking ahead•Restructuring initiatives within various divisional companies will improve performances going forward•Global trade shifts present opportunities •Government's infrastructure development plans must be accelerated as a matter or urgency•Low business confidence remains a hinderanceCommercial Products
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THE BIDVEST GROUP LIMITEDAudited financial results for the year ended 30 June 202541 •Diversification and appropriate cost structures remain the key focus areasMcCarthy•Car market continues to shift from luxury brands to more affordable options, driven by rising financial pressure on households and increasing value propositions from new entrants to the market•Large market share shifts with Chinese brands now ~15% of market, from 10% a year ago•New entrant pricing causing pressure in both new and used vehicle markets•8 new brands added in multi-franchise dealerships. 5% of new vehicle GP earned from theseAllied services•Strong new business wins and expanded offerings culminated in outstanding Dekra result •Serco performance in line with expectations•Claims costs and expenses well controlled in Bidvest Insurance. Product per deal increasedfrom 0.76x to 1.04x•Investment income R22mn lower•Compendium delivered pleasing result given product diversification and client retention strategiesNon franchise motor retail•Burchmores’ strategic reset doubled profitability•Cubbi’s expansion gained momentum. Sub-scale volumes and slow inventory turn constrained result AutomotiveLooking ahead•Restructured division poised for growth beyond motor franchising•New and expanded brand representation to better position McCarthy for the future •Continued focus growing traditional brand performance•Comprehensive strategies to deliverend-to-end mobility solution•Cubbi’s expanded reach to achieve financial scale