Bidvest Group has delivered a stronger full-year performance, with improved margins, double-digit cash-flow growth and higher earnings supporting a bigger dividend.
The services, trading and distribution group reported an 8.4% increase in trading profit to R13.1 billion for the year ended 30 June 2026, despite a challenging operating environment marked by subdued industrial activity and pricing pressure.
Revenue increased 2.9% to R130.3 billion, while gross profit rose 5.2% to R36.9 billion. The group’s trading margin improved by 50 basis points to 10%, helped by favourable business mix, productivity gains and tight cost control.
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Strong cash generation
Bidvest’s cash performance was particularly strong.
Cash generated from operations jumped 16.9% to R17.2 billion, while free cash flow surged 26.9% to R12.5 billion. Return on funds employed improved to 38.6%, up from 37.6% at December 2025.
Continuing operations headline earnings per share rose 6% to 1 864.2 cents, with normalised HEPS increasing 5.9% to 1 997.7 cents. Group HEPS was up 4.4% at 1 952.6 cents.
All divisions deliver growth
The improved performance was broad-based, with every division delivering trading profit growth.
Commercial Products was a standout, with trading profit climbing 27.2%, supported by renewable energy sales, demand for plumbing and electrical products, smart meters and portfolio expansion.
Freight increased trading profit by 10.3%, while Services South Africa delivered 8.3% growth. Automotive rose 7.1%, while Adcock and Branded Products increased trading profit by 9.4% and 5.4%, respectively.
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Focus shifts to debt reduction
Bidvest declared a final dividend of 483 cents per share, up 6.6% from the previous year.
The group is maintaining a disciplined approach to capital allocation, with no material mergers or acquisitions during the year. It is also prioritising deleveraging and capital recycling.
Proceeds from the partial disposal of its majority stake in Adcock Ingram were used to repay debt.
R2.5bn port investment
Bidvest is pressing ahead with its port infrastructure strategy after securing a 25-year terminal operator licence for its renewed Island View port lease.
The group has approved R2.5 billion in growth capital expenditure for Freight, including additional LPG, grain and liquid capacity at South African ports.
Outlook remains cautiously positive
Looking ahead, Bidvest expects structural demand in hygiene, testing, inspection and compliance, hospitality and inbound tourism to support growth.
It also sees opportunities from infrastructure, logistics and port reform, although competitive pricing, energy-cost volatility and weak industrial demand remain key risks.
Chief executive Mpumi Madisa says Bidvest enters FY2027 with positive operating momentum, with the focus remaining on accelerating organic growth, increasing cash generation, reducing leverage and rebuilding returns.
We remain confident in Bidvest’s ability to build on the FY2026 performance.
“Our focus remains firmly on execution and on delivering sustainable long-term value for all stakeholders,” she concluded.
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