The Bidvest Group Limited
Annual report 2009

Commentary

Chairman's statement

“Bidvest people put in a resilient performance and the Group achieved
a creditable result.”
Cyril Ramaphosa, Non-executive chairman  

Highlights
 
 
  • Our people put in a resilient performance
  • Growing challenges play to Bidvest's strengths of thrift and self-reliance
  • Upsurge in divisional initiatives to foster sustainable business practices
  • 'Can-do’ mindset an invaluable asset in quest for fresh possibilities
  • Plans for Namibian listing of Bidvest Namibia are well advanced
  • ‘Green is Gold’ drive makes sustainability a springboard to business value
  • In World Cup year Bidvest plans a winning performance
 

Introduction

Recession in South Africa, Europe, America and parts of Asia inevitably has consequences for a global business such as Bidvest. Dealing with deteriorating trading conditions is only part of a wider challenge facing organisations committed to sustained growth. The wider challenge is that of effecting fundamental change to deal with a new business environment.

Political change has been significant. America has a black president for the first time. South Africa has a new leader in Jacob Zuma. Market change is perhaps even more dramatic. As the financial crisis spread around the world, government-initiated bail-outs of great magnitude became commonplace as global financial systems were impacted and economies stalled for lack of liquidity.

Despite the gathering recession, Bidvest people put in a resilient performance and the Group achieved a creditable result.

In such challenging conditions our distribution to shareholders declined by 23,2% to 380 cents. The lower distribution is as a result of lower earnings, increased distribution cover and cash requirements ahead of the pending Nowaco and Farutex acquisitions.

Change

Over the past year, attitudinal change has certainly occurred, within families and institutions, among national planners in numerous jurisdictions and across the international community. The growing importance of China and India as engines of economic growth is perhaps the most dramatic signal that some fundamental changes are underway.

Economic models based on easy credit suddenly seemed absurd. Living within your means ceased to be old fashioned and became the new requirement for businesses and families.

Bidvest is affected by all these factors, but philosophically, changing marketplace conditions and environmental demands play to the Company’s a sense of thrift and self-reliance.

Sustainability

At the same time, there is increasing public awareness that collectively we need to live within the husband our resources and reduce the rate at which we convert finite fossil fuels into harmful greenhouse gases.

At Bidvest, there has been an upsurge of divisional initiatives that foster sustainable business practice while seeking competitive advantage or improved cost efficiency. This has led to the development of brands with a sustainability proposition and interventions that cut energy and water usage.

Innovation such as this has the potential to position Bidvest as a leader in the quest for sustainable solutions. Our international operations have been in the forefront of sustainable business developments for many years. Now I’m proud to say they businesses. This has led to the development of brands with a sustainability proposition and interventions that cut energy and water usage.

Vision

For 21 years, Bidvest’s core competence has been the unlocking of infinite possibilities. We aim high, as symbolised by the Bidvest arrow, yet the Bidvest vision has always been within the realm of possibility.

Our people carry our vision forward. They are the driving force. Their belief in opportunity and innovation has helped us turn everyday companies into extraordinary performers. This “can-do” mindset is the invaluable asset that will enable us to seek fresh possibilities once again, even in the face of recession.