Bidvest Asia Pacific

 

Highlights
  • Revenue up 18,0% to R17,1 billion and trading profit up 9,3% to R602,5 million
  • Despite extremely challenging environment, Australian profitability up by 18,4%
    while New Zealand grows profits by 17%
  • Australian cash flows improve as a result of tight working capital management
  • AUD5 million distribution centre in Hobart, Tasmania, nears completion
  • All New Zealand divisions perform well and remain strongly cash generative
  • Rebranding as Bidvest New Zealand proves highly successful
  • Sales volumes maintained as a result of early action to the economic downturn
    by Angliss Singapore
  • Hong Kong and China stabilise profits and sales in adverse conditions
 
    Bernard Berson, chief executive
 
 
  Financial indicators   
  (for the year ended June 30)  		 2009  
R'm  		 2008  
R'm  		 %  
change  
Revenue   17 067,6   14 467,4   18,0  
Trading profit   602,5   551,4   9,3  
Operating profit   602,5   551,4   9,3  
Operating assets   3 777,9   4 187,4   (9,8) 
Operating liabilities   3 123,6   2 326,8   34,2  
Depreciation   123,8   108,1   14,5  
Amortisation and impairments of intangible assets   3,5   4,0   (12,5) 
Goodwill and intangible assets   853,5   1 040,9   (18,0) 
               
  Sustainable development indicator overview   2009   2008   2007  
Employees   3 623   3 298   2 893  
Total training spend (R’000)   1 493   3 283   2 154  
Training spend per employee (R)   412   995   745  
Lost time injury frequency rate   13,9   20,6   3,1  
Work-related fatalities (number)   0   0   0  
CSI spend (R’000)   1 101   1 620   735  
Total water usage (litres ’000) 108 350   105 509   69 128  
Total electricity usage (kWh ’000) 80 414   69 818   38 834  
Petrol (litres)   1 102 647   1 086 388   817 574  
Diesel (litres)   6 814 851   5 858 478   5 146 476  
Total carbon emissions (tonnes)   92 145   13 203   *  
Carbon emissions per employee (tonnes)   25,4   4,0   *  
*Information not collated, not relevant or not entirely reliable              

Strategic positioning

Bidvest represents a large share of the foodservice supply chain in the Asia Pacific region. Bidvest has established a modern distribution service that is innovative, reliable and efficient, thereby providing supply partners with an unparalleled path to market. Both market size and market share are growing across the region. Additional sustainability information is available on the Bidvest website.
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Performance

The division did remarkably well in challenging conditions. Revenue rose 18% to R17,1 billion (2008: R14,5 billion) while trading profit increased 9,3% to R602,5 million (2008: R551,4 million). Cash flows remained robust, costs were well controlled and inventories well managed, though a major correction to commodity prices significantly impacted Singapore’s trading result.

Results were underpinned by strong performances in Australia and New Zealand. Australia performed strongly, growing profitability by 18,4% in local currency despite consumer down-trading. Hong Kong and China stabilised profits and sales in adverse conditions. Singapore had a poor year in the wake of falling frozen poultry prices and volatile exchange rates. A major correction to inventory levels was necessary.

Future

The division is cautiously optimistic about prospects over the next 12 months. The target is to achieve double-digit growth in trading profit. We are also positive about prospects on a three- to five-year view. Chinese growth will be key, but the indications are that steady GDP growth will be maintained. Chinese urbanisation trends are positive for us; so are signs of revival in the Australian consumer economy. New Zealand authorities forecast a measure of growth after two poor years. Our New Zealand business did not participate in the national recession to any material extent and is well placed to take advantage of any recovery. Singapore is expecting to come out of recession by the end of 2009.