Wrap Text
Bid Corporation Limited
(Incorporated in the Republic of South Africa)
Registration number: 1995/008615/06
Share code: BID
ISIN: ZAE000216537
("Bidcorp" or "the group")
CAPITAL MARKETS TRADING UPDATE
Shareholders are advised that Bidcorp management will be updating the market on the trading
environment and group's trading performance for the ten months ended April 30th 2026 at
10am today, June 2nd 2026, in accordance with the group's obligation for continuous
disclosure in terms of the JSE Listings Requirements. Details of the online webinar are
available on the group's website for those wishing to participate.
Trading performance ' Ten months to April 2026
Pleasingly, the group has continued to deliver a resilient and growth focussed performance for
the ten-month period, maintaining the positive momentum achieved in the first half of the
financial year, notwithstanding a persistently challenging global macroeconomic environment
and heightened geopolitical instability, notably the conflict in the Middle East. Whilst elevated
fuel costs have had a short-term impact on some of our cost structures, overall consumer
demand has remained generally stable and our outlook remains cautiously positive. Currency
movements have had a marginally dampening effect on reported results, with ongoing volatility
across key currencies vs the rand. Constant currency reporting remains the most appropriate
reflection of the underlying trading performance of the group.
For the ten months to end April 2026:
' Group revenue increased by 5,1% in constant currency (3,8% in rands), reflecting
predominantly organic growth.
' Trading profit increased by 7,0% in constant currency (6,1% in rands), supported by
strong performances in Europe and the United Kingdom but partially offset by lower
growth in Australasia and Emerging Markets. Gross margins have risen by around 20
bps which has mitigated the slightly higher cost-of-doing-business to date, a very
commendable outcome under the circumstances.
' Headline earnings per share (HEPS) has increased by 7,1% in constant currency
(6,6% in rands) reflecting solid momentum. Currency fluctuations negatively impacted
the rand results by around 0,5%.
Operating environment and trading conditions
Across most geographies, eating-out spend remains consistent as consumers continue to
adapt to the prolonged cost-of-living pressures. Food inflation remains relatively moderate
across much of the basket; however, core inflation, driven largely by wages, services, and
logistics costs, remains above trend. Rising fuel prices since March 2026 have increased
distribution and operating cost pressure, the peak of this was felt in April and we are now
seeing downward pressure on these.
Trading conditions improved in April following a softer Q3, particularly in the Northern
Hemisphere where weather conditions improved post a very cold January and February. The
timing of Easter was also slightly different to last year. Competition remains elevated as market
participants aggressively pursue volume in slow-growth environments. Against this backdrop,
the group remains focused on delivering sustained growth through pricing discipline, margin
quality, customer selection, cost control, and service excellence.
Divisional trading performance
United Kingdom has delivered a solid year-to-date performance in a very negative macro
environment. Trading profit growth was supported by continued market share gains,
disciplined pricing execution, and improved performance in national accounts and
non-discretionary channels. While hospitality demand remains under pressure and customer
sentiment cautious, the business has continued to operate from a position of strength.
Gross margin improved compared with the prior year, reflecting a more stable pricing
environment, benefits from range optimisation and improved execution following recent
systems and infrastructure investments. Operating costs remain under pressure from wage
inflation arising from regulatory cost increases (NI and minimum wage imposts in F2025);
however, ongoing simplification initiatives and productivity measures have helped mitigate
these pressures. Management remains focused on improving the structural profitability of the
UK business over the medium term and has delivered on that plan to date.
Europe has again delivered a very strong performance over the period, supported by resilient
margins, disciplined cost control, and good organic growth across most markets. Italy
continued to outperform following recent infrastructure investments, delivering improved
volumes and profitability. Our Eastern European operations, including Poland, Czech Republic
& Slovakia, and the Baltics, delivered pleasing growth, supported by strong execution and
market share gains.
Our more mature Western European markets experienced tougher conditions and heightened
competitive intensity, which tempered revenue growth rates in the latter months. Despite this,
margin resilience remains a key feature of the Netherlands and Belgium's performance. In
Spain and Portugal, management continues to focus on recent investments, operational
execution, and building out their operating model.
Australasia delivered a broadly flat outcome for the ten-month period with differing
component performances. Australia continues to trade in a highly competitive and
price-sensitive environment, with weak consumer sentiment weighing on sales growth.
Management has remained focused on disciplined pricing, customer selection, and margin
protection to preserve volumes and long-term customer relationships.
In contrast, New Zealand's meaningful recovery continued, supported by an improved cost
base, better sales momentum, and the benefits of additional capacity and infrastructure
investments coming on stream. Both businesses remain highly cash generative and
strategically well positioned for continued growth.
Emerging Markets delivered reasonable growth overall, reflecting the diversity of the division
and differing trading performances. Strong performances were recorded in South Africa,
Malaysia, and South America; where Brazil, Chile, and Argentina all continued to improve
despite volatile economic conditions. These gains were partially offset by weaker results in
Greater China, where trading conditions remain highly challenging and financial results weak.
The Middle East was significantly impacted by the Iran war post February, significantly
disrupting consumer demand, logistics, and supply chains. We are now seeing a return to
more normal levels of activity.
Management remains focused on cost discipline, earnings quality, and the strategic
positioning in individual markets within the broader portfolio, with continued emphasis on
capital discipline and risk management.
Liquidity, debt covenants, and capital management
The group's balance sheet remains strong and conservatively geared. The group remains well
within all debt covenant thresholds, with substantial liquidity headroom providing ongoing
financial flexibility. Strong operational cash conversion, disciplined working capital
management, a normalising capital investment programme, and fewer bolt-on acquisitions
have supported robust free cash flow generation.
Bidcorp remains focussed on maintaining a conservative yet appropriate capital structure, and
due to excess cash generation and a weak share price, has repurchased ordinary shares in
the market for around R1,3 billion since March 2026, representing 0,7% of shares in issue.
This is on top of the dividend paid to shareholders in March 2026 of R2,1 billion.
Technological investments
Technology remains an important enabler of pricing discipline, data-driven decision making,
and customer relevance. Investment in digital platforms, including agentic commerce and
systems architecture, is focused on supporting scalable growth while preserving strong local
management.
During Q3, the group advanced its digital agenda with the establishment of a Digital
Acceleration Office in Amsterdam, reinforcing technology and AI as core strategic enablers.
Continued investment in digital platforms and AI'driven applications enhances operational
effectiveness, deepens customer insight, and improves responsiveness to evolving market
dynamics, while maintaining the group's decentralised, customer'focused model.
Strategic focus areas and outlook
The group continues to pursue disciplined, long'term capital allocation and strategic
development opportunities. Recent acquisition activity remains quiet as elevated valuations
have not matched our risk-reward dynamics. However, several bolt-on opportunities are
currently being pursued, which if successful, are likely to conclude in the first half of F2027.
Investments in infrastructure, fleet, and capacity are being carefully prioritised to support
service excellence, operational efficiency, and sustainable long-term growth.
For the remainder of the financial year, despite the operating environment being challenging,
the group's focus remains firmly on those areas it can influence and maintaining our positive
momentum. Warmer weather in the Northern Hemisphere summer should bolster weaker
macro conditions. Key priorities include maintaining service excellence, disciplined pricing and
margin management, continued cost control in the face of structural cost pressures, and strong
cash flow generation.
Management is confident that the medium-term look forward for the group remains positive,
with a healthy blend of both further market share gains and bolt-on acquisition opportunities,
underpinned by the group's decentralised operating model, geographic diversification, and
strong balance sheet position enabling it to navigate potential higher inflation and rising
interest rates to deliver continued sustainable growth and above average returns.
Comment
Bernard Berson, Chief Executive Officer, commented:
"Despite a difficult and volatile trading environment, the group has again delivered a resilient
performance for the ten months to April 2026. This reflects the quality of our people, the
strength of our decentralised model, and our continued focus on discipline and execution. We
remain confident in our ability to deliver sustainable growth over time."
The information contained in this announcement has not been reviewed or reported on by the
group's external auditors.
Date: June 2nd 2026
Johannesburg
Sponsor: The Standard Bank of South Africa Limited
Date: 02-06-2026 09:00:00
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