Headline numbers
Pleasing results for the year reflect the
dedication and work ethic of Bidvest
people in all regions. Headline earnings per
share moved 15,1% higher to 1 070 cents
despite the impact of R61,2 million in
acquisition charges, mainly attributable to
our new eastern European businesses,
Nowaco and Farutex.
Revenue eased lower to R109,8 billion
(2009: R112,4 billion) but trading margin
improvements – up to 5,1% from 4,6%
– led to significant growth in trading profit
(R5,6 billion versus R5,1 billion in 2009).
Currency rates had a material impact on
results following strong rand gains versus
sterling and the euro. The negative impact
on translation of the earnings of foreign
operations was equivalent to 4,2% of
HEPS.
Mismatch
In many national markets in which we are
active, official figures showed a return to
growth. However, consumer and business
behaviour in those same geographies
continued to reflect considerable caution
and trading conditions remained difficult.
The contradiction is explained by the initial
shock of recession and the extent of
economic contraction. Shock effects have
not yet receded while "growth" since then
has still not taken economies back to the
levels of prosperity and confidence
achieved in 2007.
For Bidvest, the high watermark was 2008.
A disappointing year followed as recession
set in. Our 2010 performance takes us
slightly above the record levels achieved in
2008. It is cause for satisfaction that a lot of
hard work is bearing fruit. However, we still
need to catch up that period of lost growth.
Everyone at Bidvest is aware that challenges
persist and we can't afford to let up.
Concerted efforts by operational
management to optimise inventory levels
and manage debtor delinquencies ensured
all regions registered an improvement in
returns on funds employed. Our managers
kept an eye on the bottom line, but they
also kept an eye on the future. Bidvest
businesses continued to invest in
infrastructure even as they reduced costs
and pursued efficiencies.
Group capital expenditure topped
R2,7 billion.
Entrepreneurial model
Deliberate focus on the decentralised,
entrepreneurial Bidvest model drove these
improvements.
At Bidvest we've always believed that
people make profits, businesses only report
them. We empower people by refusing to
create elaborate structures and systems.
We keep things simple, local and flexible.
Value is realised by turning a good business
into a great business. But more
fundamental than that is turning good
people into great people. The Bidvest
model is a way of doing that. We
encourage local entrepreneurs to build the
operations they control by applying the
disciplines that turn small businesses into
big ones.
We may operate in a global economy,
but each individual is pivotal; each team
important. Being the best you can be
wherever you happen to be is the reason
for Bidvest success.
Application of our decentralisation
philosophy led to renewal and resurgence
across all regions. |
Bidvest group
