Industrial giant Bidvest has seen its trading profit decline by almost 20% after it incurred R1.6 billion Covid-19 related charges.
On Monday, in its annual results for the year ending 30 June 2020, Bidvest announced its trading profit had decreased from R6.6 billion in 2019 to R5.34 billion due to the pandemic.
The group decided did not declare a final dividend, citing high levels of uncertainty and its ongoing restructuring, meaning its total dividend for the year remains at 282 cents per share, just over 50% lower than in 2019.
Normalised headline earnings dropped by 22.5% to R3.4 billion from R4.5 billion in 2019, while the group’s revenue from continuing operations increased to R76.5 billion from R76.1 billion in 2019.
Bidvest’s debt also increased from R7.8 billion in 2019 to the R19.2 billion, following its acquisition of UK hygiene service company, PHS, for £495 million (R10.5 billion at current exchange rates) in May.
The group also announced that its CEO, Lindsay Ralphs, will be stepping down on October 1, to be replaced by CEO designate Mpumi Madisa. Ralphs was appointed as Bidvest South Africa’s CEO in 2011 and continued as CEO for the group in 2016 after the company unbundled its food service division.
“The Bidvest family and board of directors thank Lindsay for 28 years of invaluable commitment and contribution. He will leave behind a deep legacy and his distinct mark on Bidvest that will continue to guide the group in its future endeavours,” said the group in a statement.
