/ 30 August 2010

Bidvest full-year profit rises, upbeat on outlook

Bidvest, a freight and distribution company, posted a 15% rise in full-year profit on Monday as stronger demand for cars and food services offset unfavourable swings in currencies.

Bidvest, whose businesses include auto retailing, shipping and food distribution, said on Monday headline earnings per share rose to 1 070 cents in the year to end-June from 930 cents a year earlier.

Headline EPS is the main profit gauge in South Africa and strips out certain one-off gains.

The company, which operates also operates in Europe and Asia, said it expects strong earnings growth as the global economy makes a slow recovery.

“We are budgeting for real growth in earnings,” it said in a statement.

Bidvest, one of the biggest companies in South Africa by revenue, has been struggling in recent years as slow economic growth in Europe, Asia and South Africa hit demand for its products and services.

The Johannesburg-based company said it had cash ready for further acquisitions.

Revenue fell 2,3% to R109,8-billion. — Reuters